Cast chief executive Mark Farmer, commissioned by the government to oversee a review of the construction and housing labour markets, has backed the idea – floated last year by housing minister Brandon Lewis in an interview with Construction Manager – that contractors should develop more homes directly in the private rented sector (PRS).
Farmer was speaking at the launch of Build to Rent: A Best Practice Guide by the Urban Land Institute (ULI), a publication in which he authored one of the chapters.
The 184-page ULI report, a guide for clients and property professionals, firmly backs the concept of using offsite construction for PRS homes.
As well the improved consistency and cost savings, the report highlighs the benefits in terms of maintenance and refurbishment, as Built to Rent homes will require re-freshes at regular intervals.
It says: “The extent of refurbishment will vary but the building design can help to make this process easier by accommodating the replacement of building elements. Prefabricated elements such as bathroom pods, modular kitchens and door sets can be removed without affecting more than one floor of a building at a time.”
Speaking to Construction Manager, Farmer said: “I think there are some interesting opportunities for contractors if they wanted to move [into the PRS sector]. With housebuilders, their model is quite established and I don’t think that’s going to change, but contractors have the opportunity to move into the area, as well as using offsite construction as a tool for this.”
“With house builders, their model is quite established and I don’t think that’s going to change, but contractors have the opportunity to move into the area as well as using offsite construction as a tool for this.”
Mark Farmer, Cast
He added: “Infrastructure is a good area for contractors …. also rented residential is up there being one of the high opportunity areas. If I was a contractor I’d be looking at that as an area I might want to get into.”
The guide defines Build to Rent properties as developments at a scale of 100 units+, in schemes which are purposely designed and built with the customer in mind.
The report supports the development of a corporate rental sector in Britain – funded by institutional investors, such as pension funds.
In a press release, Farmer said: “Offsite manufacturing has long been viewed cautiously by the private for sale developer market and has lacked real investment. With the Build to Rent sector seeing the tangible benefits of quick delivery and with longer-term institutional finance funding large portfolios rather than just projects, this could be a real catalyst for the growth of a larger scale off site manufacturing capability for housing in the UK.”
The ULI, founded in Chaicago in 1936 but active in the Europe since the early 1990s, is an independent global non-profit supported by members representing real estate development and land use disciplines. It has around 800 members in the UK.
The CIOB has recently submitted its views to Farmer’s housebuilding and construction review.
