Blog Directory : Listing Details

Listing Details

Recent Posts:

ID:531
Title:Housebuilder's Update
URL:http://www.housebuildersupdate.co.uk/
Feed URL:http://www.housebuildersupdate.co.uk/rss.xml
Category:Business: Construction & Property
Description:News, analysis and opinion on housebuilding by Housebuilder's Bible author Mark Brinkley, Planning Game author and planning permission expert Ken Dijksman and green building specialist Tim Pullen.
Gardon plot availability - 2010-06-22 11:45:00
 The demise of garden plots may not be upon us

On 9th June amid much fanfare the government announced it was ending ‘garden grabbing’. The media eagerly interpreted this as meaning there would be no more building in gardens. But, what does the change in policy really mean and does it signal the end of self-build as we know it? Maybe not.
 
The relevant change made to the house-building guidance is to take private residential gardens, parks, recreation grounds and allotments out of the definition of previously developed land or ‘brownfield’, on which at least 60% of all new house-building is expected to take place. What difference will this make? Well, government guidance said (and still says) that there was no presumption all previously-developed land was suitable for housing development or that the whole of the site could be built on anyway. The ‘brownfield’ classification didn’t over ride other polices, such as countryside protection or preserving the privacy of existing houses. In response to ‘garden grabbing’ accusations, the last government pointed out in January this year that councils already had powers to prevent inappropriate building in gardens.
'Councils now have the power to protect gardens from inappropriate development - but the new guidance doesn’t say anywhere that gardens can't be built on'
The statements which accompanied the new guidance said only that councils would have the power to protect gardens from inappropriate development - the new guidance doesn’t say anywhere that gardens cannot be built on. The thrust of several proposed planning reforms is to give power to councils to set their own rules so we shall have to see what approach each council chooses to adopt for its area as new policy documents are drawn up. Most councils have existing policies which permit houses to be built on suitable sites inside the built-up areas of towns and villages. That’s likely to continue because the alternatives are for acute housing shortages leading to astronomic house prices with people sleeping ten to a room or building on 'greenfield' sites outside towns, which was even less popular with the public than building in gardens. A research report by Kingston University last year found that building on back gardens was not a widespread, national or growing problem.

This change in policy has the ring of a new government giving its supporters a headline to cheer about and, no doubt, some councils will use the new guidance as an excuse to turn down some locally unpopular garden planning applications. No one yet knows where this will end – least of all government ministers – and we shall have to see how councils react. Houses were being built in gardens long before the current or previous versions of this guidance existed. The chances are that garden building will continue for many years yet. Rumours of the death of garden self-builds may yet prove to have been greatly exaggerated.

Roy Speer, Planning Consultant and co-author ofHow to Get Planning PermissionandHow to Find and Buy a Building Plot

How to find and buy a building plot - 2010-06-14 17:14:00
A new edition of the best-selling book on finding plots has been published by Ovolo Books. Priced at £15.95 the new edition is bang up to date and contains great advice on finding consented land or land on which to obtain consent

OFT Investigation into Bid Rigging - 2008-04-17 16:19:00
People may be shocked that112 firms have been accused of bid rigging, but my guess is that the practice is so widespread, that it’s almost universal. It’s certainly just as common down at the smaller end of the building game as it appears to be up amongst the big boys, and I can remember it going on on a casual basis all over the place when I was involved in the jobbing building market.

Here’s what the current edition of the Housebuilder’s Bible currently has to say on the topic:

One practice which is now becoming prevalent is for busy builders to get together and divide up the work in a way (and for a price) that suits them – it’s called covering. It works like this. A job is put out to tender – typically by an architect – to four or five local builders. Some of them are so busy that they simply don’t want to take on any more work. Architects tend to regard refusals to quote rather badly and the builders feel that, rather than risking losing the possibility of quoting for future work, they would like to put in some price, any price. So the next step is to chat with the competition – it’s not hard, it happens naturally anyway – and soon an informal cartel is in place.

Reg: ‘Have you been asked to quote for the old Rectory Job at Chipping Butty?’
Charlie: ‘Yes. I like the look of it.’
Reg: ‘I really can’t see any way we could do that one – could you do us a favour and cover us.’
Charlie: ‘Sure – I’ve no doubt you’ll be able to return the favour soon.’

So Charlie puts in his price and tells Reg to put in a price maybe £20,000 higher. Reg knows he won’t get the job but he hasn’t spent any time or money quoting for it and he hasn’t upset the architect so he’ll stand a chance next time around when he does want the work.

Occasionally the builders know all the other tenderers on any given job – in matters like this the grapevine works extremely efficiently – so that there are cases where every builder on the tendering list has been in on the scam. They all know who is providing the lowest quote and, consequently, the lowest quote is in reality quite a high one. Such a complete stitch-up is perhaps rare but frequently two or three of the quotes will be for show purposes only.

Partly this problem stems from the way building work is procured in the first place. And in particular the practice of builders quoting for free causes a lot of problems. It sounds too good to be true and of course it is. It takes a good deal of time to generate an accurate quotation and most builders simply send tender documents off to a quantity surveyor who carries out the work for them (for a scaled fee, depending on the size of the job). Now builders often end up quoting for five or six jobs in order to win one so the overheads of quoting for jobs they don’t get becomes a significant business expense in itself. Anything that helps to ease the load of having to quote for jobs is manna from heaven for builders so you can see the attraction of any informal price fixing arrangements they might concoct.