Changing the UK New Homes Market

Changing the UK New Homes Market

By 2020 buying a new home will be impossible for most hard working Brits. We want to stop this from happening while we still have a chance

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In the UK today, we are faced with a major and potentially permanent housing crisis with no solution in sight.

 

Successive Governments have failed to ensure housing supply matches demand

 

After a long period under the radar, the shortage of housing supply has been thrown into the spotlight thanks to the combination of a recent price boom and stagnant real wages.

 

Though it may only recently have captured widespread political attention, it has been clear for some time that housing supply is not keeping up with the additional demand generated by rising life expectancy, immigration and the growing number of one-person households.

 

The resultant house price inflation in areas of high demand has led commentators to suggest that by 2020 home ownership will be an ‘impossible dream’ for those not already on the ladder.

 

Declining affordability would suggest that, for many, that dream is already impossible.

 

Constraints in the planning system are often cited as reasons why it has proved so difficult to build enough houses.

 

Another reason commonly cited for inadequate housing supply is a shortage of available land, blocked in some areas by policies designed to protect green spaces.

 

Although greenbelt policy has been effective in preventing urban sprawl, and maintaining a clear physical distinction between town and country, it is argued that it has prevented houses from being built where they are most needed, contributing to unaffordable house prices for first time buyers.”

Excerpts from ‘Key issues for the 2015 Parliament’, www.parliament.uk

 

After 26 years of both developing and selling new homes in Africa, Asia, Europe, the Americas, UAE and the UK, this report didn’t shock me.

Instead, it switched a light on in my head – I had the solution to stopping home ownership from becoming an ‘impossible dream’ for so many hard-working Brits.

 

If home buyers can’t afford the new homes being built, then build homes that they can afford.

If new homes are priced based on the cost of the land and construction, so many more buyers will be able to afford them.

This in turn will help to give ‘Generation Rent’ a choice of either buying a new home or continuing to rent.

 

Whichever way I looked at it, the idea made perfect sense, compelling me to explore it deeper and so began months of extensive research and development.

There were 3 major issues that needed to be fully understood and overcome in order to make this idea viable and sustainable:

 

Land

  • Most large development land in the UK has been bought out by large developers who work closely with local councils and planners to build large, high density estates in an effort to alleviate the housing shortage in those areas
  • Small to medium size developers have essentially bought everything else that they have been able to find
  • Individuals who would normally buy the remaining smaller plots of land, build one or two new homes on them and then sell them on the open market, no longer want to take the risk of declining affordability

The solution is to use our network of highly experienced and well-connected Land Agents to access hundreds of individual plots of development land available throughout the UK and give each buyer the chance to choose their preferred location based on real-time availability and their budget.

 

Build Quality & Shortage of Building Materials

  • As well as widespread media coverage, there are countless blogs and forums where buyers share their experiences of delayed completions, sub-standard construction, living on building sites, poor service and how after months spent rectifying the problems, their ‘patchwork’ homes have now depreciated in value
  • Most of the large developers explain that the pressure to build more homes and build them faster, has meant that quality and service have taken a big hit and that they too are paying the price in corrective works and compensation payments – smaller developers don’t seem to have the same problems as they build much fewer numbers of homes on any one time
  • On most large developments you are reminded that these are ‘man-made’ homes and not built in a factory, so they will never be perfect and that our British weather can cause delays to when homes are completed
  • Due to a number of different reasons, there is a shortage of building materials such as bricks, blocks and roof tiles across the UK.

The largest developers have been importing bricks and blocks from countries such as Poland and Bulgaria to keep within their projected budgets, however small and medium sized developers have been at the sharp end of rising prices and diminishing supply which hinders their ability to complete new homes on time and on budget

To solve this, I turned to the German housing market where buyers look to buy one home in their lifetime and so it has to be perfect.

UK factory-built home manufacturers supply the German market with hundreds of amazing new homes every year.

These are homes constructed by highly skilled technicians in state-of-the-art facilities using the most advanced precision machinery and technology, all in warm, dry and controlled environments.

Interior and exterior finishes are of the highest possible quality and remain that way throughout the life of the home.

This solution also gives buyers the choice of modern, traditional and bespoke house styles all within their budget.

By using just 6 manufacturing plants, each running at half capacity, we could potentially build 3,000 new homes per year – this number of homes would take traditional developers about 10 years to complete on a single site.

 

This idea has the potential to help thousands of home buyers throughout the UK both now and in the future and so Grosvenor Kläs Homes has been launched to deliver this logical alternative to every home buyer that wants or needs it.

 

From a buyer’s perspective, this is how it works:

  1. Register your interest with us to get started
  2. Get an ‘Acceptance In Principle’ from your chosen mortgage lender and tell us you budget (not required if you are a cash buyer)
  3. Tell us exactly where in the UK you want to live and choose from the plots that we find for you (unless you already own your plot)
  4. Choose your preferred house style and the number of bedrooms you want
  5. Visit our closest office to select your preferred interior and exterior finishes
  6. On completion, receive the keys to your stunning new home and love every moment of living in it

 

This is where your help and support is needed to raise a minimum of £50,000 to open our first sales office/showhome and to recruit essential sales advisors and administrative staff who will help our first buyers get through the buying process. As we grow, we will continue to open new offices all around the UK.

In addition, you can take advantage of our Recommendation Reward of £1000.

Recommend a family member, a friend or even a colleague and if they buy a new home from us, we will give you £1000 plus there is no limit to the number of people you can recommend.

Once complete, we can start helping buyers get on to the property ladder and potentially help to start saving our housing market!

 

Home ownership is part of our culture and everyone in the UK should have the right to choose if they want to buy a new home, so please get involved by choosing one of the funding options and spreading the word by sharing this with everyone you know.

 

Thank you.