The pipeline of
social housing new-build projects entering the planning system boomed last year
according to exclusive market research from Glenigan.
There was a 14% rise
in the number of detailed planning applications to build new homes by
registered social landlords last year. Those 527 applications contained plans
for 28,489 new social homes, which is an 18% rise on the number of units
entering the pipeline in 2018.
Four RSLs put
together planning submissions for more than 1,000 units last year with Notting
Hill Genesis proposing the biggest number of new homes.
Notting Hill
Genesis’ Grahame Park estate redevelopment in Colindale, north London, was the
biggest project to enter the planning pipeline. This proposal from Notting Hill
Genesis will provide more than 2,000 homes and construction is likely to begin
in 2022.
Other major social
housing schemes about to go live include the Turnhouse Road development of
1,400 homes in Edinburgh by Dunedin Canmore Housing Association and West Craigs
(Glenigan Project ID: 16368698). According to Glenigan’s research, construction
should start on this scheme later this year.
A host of other
major social housing projects are moving through the system according to
Glenigan’s data with some smaller RSLs joining forces to progress bigger
developments. For example, Lochaber Housing Association and Highland Small
Communities Housing Trust is working with Link Group to build 325 homes at
Upper Achintore in Fort William (pictured, Glenigan Project ID: 17311006).
There were also five
RSLs amongst the industry’s top 100 construction clients in 2019 and Notting
Hill Genesis was also the biggest spender. The association is building a swathe
of new homes on the Aylesbury Estate at Southwark in south London. Hill Partnerships
bagged a major deal and started on site last summer (Glenigan Project ID:
18257506).
Other contractors
working on the Aylesbury Estate packages include Vistry, which is due to start
on a £60 million package this summer (Glenigan Project ID: 16270537).
Other RSLs amongst
the construction industry’s top 100 clients include Southern Housing, which is
working on a £150 million residential scheme at Shoreham-by-Sea (Glenigan
Project ID 16244688), and Places for People.
Places for People is
spending £100 million on modular homes with Ilke Homes (Project ID: 19181842)
and also progressing other large developments, such as the Egham Gateway
development, which is delivering hundreds of new homes with phase two starting
this spring according to Glenigan’s analysis (Glenigan Project ID: 19105039).
Social housing
construction is one of the sectors that is predicted to weather any post-Brexit
downturn according to Glenigan’s latest industry forecasts.
Economics director
Allan Wilén says: “Housing associations are now better placed to finance and
take forward new developments. Government requirements limiting association’s
rent increases to 1% below the rate of inflation are ending. This will provide
associations with greater flexibility to increase their borrowing to fund new
developments.”
After some weakness
this year, Glenigan is predicting a rise of around 9% in the underlying value
of social housing project starts next year.
