Private Residential Construction

With more and more housebuilders re-opening or planning to re-open their sites as the peak of COVID-19 passes, research from Glenigan suggests that private residential construction work is bubbling within the planning pipeline.

Both Persimmon and Vistry staff began returning to site on April 27^th, 2020, and Taylor Wimpey along with Bellway following suite at the start of May. Redrow are set to begin a phased re-opening of sites as of today (May 18^th, 2020) and Barratt will see 180 of its 360 active sites opened by the end of May 2020.

Research from Glenigan shows that work has started moving through the planning pipeline too, with Economics Director, Allan Wilen saying: “The long-term planning pipeline remains firm, and the immediate pipeline is beginning to show positive signs.”

However, despite some staff in planning and procurement being furloughed, many major residential projects are continuing to enter the planning system. Developers Moda Living and Apache Capital have put forward plans for the £258 million Great Charles Street, Birmingham. The development will have 722 apartments, along with shops, commercial space, and a gym. If the planning application is approved, work should begin on site next year.

In the build-to-rent sector, projects also remain strong, with Legal and General confirming funding of £150 million in its West Bar development in Sheffield, the scheme includes 350 build to rent homes, and is being built in partnership with developer Urbo, as well as Sheffield City Council.

Nigel Wilson, Legal and General Chief Executive said: “Our vision for West Bar Square is to deliver a much-needed new quarter for the centre of Sheffield.

“During these unprecedented times, it is absolutely imperative that institutions continue to push forward with deals, so we can position the UK for an accelerated recovery and lay the groundwork to support those most in need in society.”

Residential projects are also still securing planning permission, despite the fact that there are some challenges at the local authority level when trying to organise planning meetings.

The data which Glenigan have produced shows that the overall national value of private residential projects that have secured planning permission fell by 13% in the 12 months to Q1 of 2020, but some regions have recorded a rise. Approvals in the South West are up by 54% and 3% in Scotland, whilst the falls in both the East Midlands and Wales are marginal.

One of the developments which has boosted the total rate for the South West was Bellway’s Pirton Fields development, where plans to deliver 465 new homes has now gained planning permission.

Other residential schemes which have recently secured planning permission are the £100 million Greengate development in Manchester, which will deliver 1,550 residential units and will also offer BTR units.

There are also plans to develop 4,000 homes in Attleborough, Norfolk, which has been given outline planning permission from Breckland Council. The scheme will have 400 affordable homes, along with a £34 million investment from developer Ptarmigan Land, in order to fund local schools and a new link road connecting Buckingham Road and London Road.

With construction on-site beginning to improve, the continuing activity in the background of the construction industry will boost the pipeline of work and also aid the longer-term recovery of the country.

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