A new guide on becoming a smaller housebuilder is the brainchild of FMB Vice President, Chris Carr. Professional Builder’s Lee Jones talks to the managing director of Cleethorpes-based Carr & Carr about the advice the initiative hopes to communicate to contractors.
There is no doubt that a well-documented decline in SME house builders is hampering our ability to provide much needed new homes. Forty years ago, in fact, small and medium sized firms delivered 40% of new registrations whilst today that figures stands at 10%.
Micro and SME developers tend to build on the basis of quality, rather than quantity, driving up standards, championing new ideas, and encouraging differentiation. Increasing the number of available homes overall will have a positive impact on the trades, as well as the building materials supply chain. It will allow companies to employ locally and train many more new recruits. Add to that the obvious benefit for house hunters currently stumbling to find a foothold on the property ladder, and the advantages to the wider economy and society at large are self-evident.
A new Construction Leadership Council (CLC) document – “Becoming a small housing developer: advice and guidance from others in the new homes industry” – is designed to help individuals and companies who might be embarking on their own new build journey to navigate the finance, land availability and planning issues that still deter far too many from taking the first steps.
“The ambition is to provide practical and accessible advice to help steer your business through the process,” explains Chris Carr, Chair of the Construction Leadership Council (CLC) SME Housing Subgroup – the body that put the publication together. His Cleethorpes-based company is a fifth-generation family firm that’s at least a hundred years old and – as a specialist housebuilder – is well-versed in providing a quality product in its Lincolnshire heartland.
At the same time, Chris is equally passionate about welcoming new entrants into the sector: “The publication contains the collective knowledge of experienced builders, trade bodies and industry experts,” he explains. “When we put the Housing Subgroup together we want to make sure we had the best possible people with a broad range of opinions and backgrounds. We’ve got representatives and companies recommended by the FMB (Federation of Master Builders), NHBC, HBF (House Builders Federation), National Federation of Housebuilders (NFB), Build UK, and LABC. In fact, one of the findings of the report is for fledgling housebuilders to join a trade body. The networking, advice and support these organisations can provide has real advantages for SMEs in particular.”
Carr & Carr is in the unusual position of still building on the north Lincolnshire land that Chris’s father acquired more 50 years ago, but that’s not a luxury that many companies enjoy. The CLC guide is an invaluable resource on this very topic, explains were to look for the best plots, types of land – including ‘oven ready’ sites with planning permissions attached – all complemented by guidance from established players in the market. “For example, many budding developers might not be aware that Local Authorities own small parcels of land that they often don’t know what to do with,” Chris advises. “You can access these through a simple freedom of information request and then enquire about purchase.”
The publication goes on to engage with different sources of finance, and how to secure them, as Chris reveals: “Many high street banks are reluctant to support SMEs but companies like Close Brothers do a great job. Private lenders that can be accessed through accountancy firms are often overlooked and the guiding principle is to be creative about how you access funds.”
Developing a reliable workforce and quality team of tradespeople is equally paramount and is addressed in the guide. Carr & Carr itself provides a full design and build service but relies largely on trusted sub-contractors: “We learnt a long time ago that if you want to engage with quality, highly skilled trades then these are people who want to stay self-employed. My own expertise is in planning, and a business with access to a range of skills will always be more successful.”
The potential hurdles in the planning process are a frustration for many and worthy of particular attention, with building positive relationships with planners identified as an imperative by every member of the Housing Subgroup. Be realistic with timings, expect delays, and be prepared to compromise.
The “Becoming a small housing developer” guide is intended to be a living document where relevant links to other organisations and the advice itself can be updated. Its scope is, however, already impressive, with further sections that encompass prebuild to handover, Building Control, buying materials, site management and much more. The current thinking of net zero and sustainability is also addressed as well as smart construction and digitalisation.
Perhaps most encouragingly for those currently making their living on site the new CLC guide is the product of a collaborative spirit, with businesses and trade bodies coming together to support their peers. It’s an approach that Chris believes is vital if real progress is to be made: “There should be no competition between SMEs because our commercial rivals will always be the volume producers. The avowed aim is to give micro house builders – who can often be the most innovative – not just support but a voice that can be heard by government. This is something I’ve had an ambition to do for more than two decades and the group has itself been meeting for two and half years.”
“We want to encourage both tradespeople and entrepreneurs to come into the industry”, concludes Chris. “It benefits no-one if all the houses in Britain are built by 10 or 12 companies. Consumers want something different – even unique – and that’s just what SMEs can supply.”
To download the “Becoming a small housing developer: advice and guidance from others in the new homes industry” visit https://www.fmb.org.uk/resource/guide-to-becoming-a-small-housing-developer.html
