Self-build and Custom Housebuilding Bill Debate

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Self-build and Custom Housebuilding Bill

Bob Stewart Excerpts
Friday 24th October 2014

(10 years, 1 month ago)

Commons Chamber
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Graham Allen Portrait Mr Allen
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When I was in Berlin, I had the impression that the concept of group build was déclassé. In the United Kingdom, the aristocrats have the big houses, the middle classes have their hideaways in Islington—or its equivalent in my city, and no doubt in other cities—and everyone else seems to have acquired the “better builder” kit from one of the volume builders. And then there is social housing.

In the United Kingdom, there is a very rigid view, almost a “caste system” view, of what housing should be. That was totally absent in Berlin. There was fluidity. It was not a case of “We have a quota,” or “We are helping some people out,” or “We are getting a bit of a deal, some money, and because we are being allowed to build something else, we will build a bit of social housing.” That is rather what the old council estates used to be like, certainly when I was growing up in my constituency. There was no thought that such housing was strictly limited to a specific group. Now, however, we have almost come to accept that that is the way that it has to be in the United Kingdom. I think that self-build, or collective build, or community build, is one of the ways in which we can return to a more open market in housing, in which everyone can have a stake.

As I have said, Berlin was quite an eye-opener for me. I discovered that 15% of all new homes there were provided by means of the group build method. That is a big chunk of the market, and—the hon. Gentleman will correct me if I am wrong about this—I believe that the percentage is increasing, and has been increasing steadily since just after the war.

A key factor has been local government’s ability to play its part. We were told repeatedly that the precedent could not have been set if the spark had not been lit by the Berlin council and its sub-divisions, which saw group-build as a way of enabling people to run their own affairs and to make housing that they felt was appropriate, rather than housing that some other person felt was appropriate for them. They were allowed to express themselves, by which I mean not wild and wacky architectural design, but enabling people to make whatever interiors they like once the shell had been constructed. As the hon. Gentleman will recall, we went in and out of houses which were identical at first sight, but whose internal design had resulted from a tremendous amount of imagination. The customising of group-build was one of the features that I took away from that visit.

Bob Stewart Portrait Bob Stewart (Beckenham) (Con)
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I am sorry that I was not present for the beginning of the debate. I know from my time in Germany that there is not much of a tradition of owner-occupation there. Many people hire or rent their properties. Is the system that the hon. Gentleman is describing a way of helping young Germans, or Germans without much money, to enter the property market, because the cost of owning property in Germany is so much higher than it is here? That is a question, not a statement: is owning property more expensive there?

Graham Allen Portrait Mr Allen
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I wish I were more of an expert on the British, let alone the German, housing market. However, I know that the hon. Member for South Norfolk is itching to intervene, and he may well provide me with the answer to the hon. Gentleman’s question.

--- Later in debate ---
Brandon Lewis Portrait Brandon Lewis
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The hon. Gentleman makes a good point. Having explained the differences between the two, for the purposes of this debate I will use the terms “custom build” and “self-build” interchangeably—but I want to make it clear that there is a difference between them. He is absolutely right. With regard to volume house building, including on large sites, we would like eventually to see opportunities within that put aside for these projects. I will touch on that later, particularly as regards garden cities and the garden city principles we are using in areas such as Ebbsfleet.

It is realistically possible that, with the use of modern technology and the way in which modern building techniques are now moving, we will not be that far away from house builders, even in large-volume house building, adapting parts of their site, at least, to a point where a member of the public who wants to buy their own home can walk on to it and instead of doing what they tend to do now and saying, “What plots are available and which house are you building on that plot,” and, “Thank you, that’s the one I would like to buy,” being able to say, “I want that plot with this style of house, and I want to do this or that with it,” so that they can then have that house built for them by the builder more quickly, we hope, than the 20-plus weeks that it takes at the moment.

Bob Stewart Portrait Bob Stewart
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Does self-build also apply to someone who takes a wrecked old barn, say, and decides to make it into a home? If it was not anything much before—a sheep pen or something—but then becomes a home, is that defined as “self-build”?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend gives me a chance to clarify the situation. Earlier this year, we changed the permitted development rights on farm buildings, in particular, to allow them to be converted into homes. They would probably come more into the conversion category, unless it involves somebody being able to get planning permission to demolish what was there and then move on to self-build or custom build, as appropriate. I guess that it somewhat depends on the size and quality of the sheep pen.

Many people across the country would love to build their own home, whether by building it themselves or by commissioning a specialist developer. As has been noted, research by Ipsos MORI has shown that over 1 million of them are looking to do so in the immediate future. We know from the latest Building Societies Association consumer survey in September that more than a third of Britons are open to building their own home. That is a phenomenal number to whom this Bill could open up a new market.

That strong level of interest is not surprising. Custom and self-build housing offers people more choice and the ability to design a home to suit their own needs, leading to greener and better-designed homes. If people design their own home, as I am sure the hon. Member for Wolverhampton North East remembers from the home with her parents that she described, they tend to live there longer, and that is good for building stronger communities. In many cases, it is also more affordable than buying a home in the conventional way. A report published by Lloyds Banking Group in 2013 concluded that self-builders can save between 20% and 25% on the cost of an equivalent home on the open market—a crucial saving for many looking to get on the housing ladder. That brings things up to the levels we are talking about with the new starter homes programme under the next Conservative Government.

There are wider benefits too. A strong custom-build sector brings new opportunities for medium-sized and smaller house builders, as well as for housing associations that are looking to diversify their offer. We know this because the Federation of Master Builders and the National House Building Council have found that most smaller builders want to do more custom-build projects. More housing associations are now looking at the option of custom build. It presents a huge opportunity.