Survey Solutions boss eyes ‘shift in momentum’

Thanks to Grey Belt reforms, the restoration of mandatory housing targets, and the introduction of the Planning and Infrastructure Bill, the political conditions for the creation of new housing developments and communities in the Midlands have never perhaps been more favourable.

But turning ambition into completed homes remains far from straightforward. Developers continue to grapple with viability pressures, skills shortages, rising build costs, constrained utilities infrastructure and a planning system that, despite reform, can still be slow and unpredictable.

Place Midlands caught up with David Lowe, chief executive of Birmingham-based Survey Solutions, to discuss the patterns he’s seeing from clients, and what the future may hold for the sector.

What trends are you currently seeing in the housebuilding sector here in the Midlands?

We’ve definitely seen an increase in prospective sites being surveyed and bought for potential development across the region, with a real uptick in activity over the last 12-18 months in particular.

Indeed more and more housebuilders and developers have been engaging us to carry out a range of surveying services, often as part of pre-acquisition exercises, with legislation changes having been geared towards fostering the right conditions for new developments to get off the ground quicker.

Internally we’ve also seen a rise in instructions from the strategic land departments of developers who are looking to ascertain the viability of sites for long-term development right across the Midlands. These entities are often fairly steady with their approach to securing potential plots, so this trend really does highlight the drive for growth across the industry.

Many are sceptical that the government’s target of building 1.5 million homes over the course of this parliament can be achieved – and it is incredibly ambitious – but we’ve definitely seen a shift in momentum.

In which areas of the Midlands are you seeing the biggest upturn in activity?

Both Nottingham and Leicester have seen increased activity, while the Derby-Nottingham channel is a clear area of growth which could be accelerated further due to planning reform around rail corridors.

Elsewhere, we’ve also surveyed a significant number of greenfield sites in the Lincolnshire area which have been earmarked for future development.

Looking at this pattern it’s clear that companies are trying to take advantage of the government’s housebuilding drive in the region.

Which players in the market are leading the growth and what else is fuelling it?

The usual suspects are making moves in the region – think Persimmon, Taylor Wimpey and Barratt Homes – however SME developers also seem to be investigating and commencing an increased number of projects compared to a couple of years ago.

In part this is being driven by the ‘Call for Sites’ process being enacted by local authorities across the Midlands, which is aiding smaller housebuilders who are taking advantage of sites that aren’t suited to national firms due to their size or logistical challenges.

Helping to fuel this growth for developers of all sizes are the changes to legislation regarding the grey belt which have expanded the pool of accessible land available and consequently, developers are moving quickly to secure options on anything potentially viable.

Looking ahead, what do you think the future holds for housebuilding in the region?

While the last couple of years have seen a real surge in activity across the housebuilding sector here in the Midlands, it’s far from certain whether this trend will continue.

Some larger, publicly-owned developers are likely to err on the side of caution following the Iran war and the implications for mortgage rates and consumer spending power, while on the other hand it could present opportunities for private developers who are willing to sit on land and ride out short-term market volatility.

It will remain a contentious topic here in the Midlands and across the country, with only time being able to tell whether the government’s policy shifts to make it easier for housebuilders and developers to acquire and develop sites has the desired effect.