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The entry deadline for the most prestigious prizes in housebuilding is almost upon us. There is always a buzz of excitement as entries arrive at the What House? Awards offices, showcasing the best new homes in Britain. While


housebuilders, one would hope, take great pride in every home they build, it is always instructive to see which developments and houses they consider the greatest in their playbooks over the last year; the ones they believe are best in class, be it a brilliantly conceived starter home but within a first time buyer’s budget; a restoration work of epic architectural proportions, or a development of mid-market family homes that ticks all the boxes when it comes to design, build and meeting buyers aspirations. Among the familiar industry names, there are always some new ones, be it fresh and bold start-ups anxious to see if their first-ever developments can compete with the best, or established small family companies persuaded by their loyal customers to have a shot at a housebuilding industry ‘Oscar’. Like any collection of award entries, there are some clearly of insufficient merit to win come November 18th at the Grosvenor House. But each year the bar is raised - and no I don’t mean the hotel Red Bar! Earlier this year housing minister Grant Shapps made a cheap jibe about ‘Legoland’ new developments, with his comments shamefully endorsed by RIBA. Once all the Award entries have been judged this year across 21 categories perhaps we’ll load them into a lorry and send them to the housing minister’s constituency office in Hertfordshire. I think you’ll be pleasantly surprised Grant. Mind you my four-year-old Freddie would move into Legoland tomorrow.


Editorial DirectorRupert Bates


rb@globespanmedia.com www.twitter.com/rupertbates


Show House magazine is available for £90 per year. Please call 0207 324 2800 or email at@globespanmedia.com


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For details on entering or sponsoring the What House? Awards, and to book seats at the gala luncheon, please contact Derek Smith


ds@globespanmedia.com Tel: 020 7324 2800


showhouse July 2011 | ISSN 1468–747X


PUBLISHED BY Globespan Media Ltd, Third Floor, 8 Baltic Street East, London EC1Y 0UP. Tel: 020 7324 2800 • EDITORIAL DIRECTOR Rupert Bates rb@globespanmedia.com • EDITOR Kate Hamilton kh@globespanmedia.com • ART EDITOR Kelly Bates kb@globespanmedia.com •HEAD OFUKSALES Adrian Talbot at@globespanmedia.com • SALES EXECUTIVE Richard Fenton rf@globespanmedia.com • SALES EXECUTIVE Iga Lisowska il@showhouse.co.uk • SUBSCRIPTIONS Adrian Talbot at@globespanmedia.com 020 7324 2800 • PRINTED BY Buxton Press •©Globespan Media 2011.Nopart of this publicationmaybe reproduced without prior written permission from the publishers. The greatest care has been taken to ensure accuracy, but the publishers cannot accept responsibility for errors and omissions and the views expressed are not necessarily those of the publishers.


83 19 23 city SHOWHOUSE   


The streets of London, as anyone who has been there will testify, are not paved with gold, either literally or metaphorically. As well as being among the


filthiest in the country, sprawling outwards beyond the polished slabs of the City along miles of exhaust stained, chewing gum flecked carriageway, London’s streets offer no guarantee of prosperity. One only need watch the revolving door of the


high street to see that for each clothes shop, coffee bar or newsagent that sticks, there are a great many more which do not, sucked out instead on a tide of debt and dashed dreams. Housebuilders seem unfazed by this prospect, however. The industry has packed up its tool kit and marketing slides and is moving wholesale to the capital. Where once management filled investor days talking about their “national presence” and their ability to “meet the needs of each of the many regional markets” they played in, now it is all about London. The stalwarts of the sector, the so-called national housebuilders, are all talking up their activities in the capital so much that it sounds like they are reading straight from a Berkeley Group press release. The London market is the place to be seen. Last month Barratt fired the starting gun on


its project to build a new 375-unit development next to the Emirates Stadium in north west London, home of Arsenal Football Club. The scheme is a typical inner-city housing development – four blocks of upmarket apartments, topped off by expensive penthouses. Slightly more surprising is that for Barratt, that powerhouse of national housebuilding, this project, far from being edge of the empire stuff, is now centre ground.


marketing of the residential scheme. Bellway, too, is trying its hand in the capital


IN THE CITY


The group has amassed a 7,000-unit land


bank in the capital and is working on a host of buildings, including a 550-unit scheme in Dalston Junction and a 27-storey residential tower on those polished City slabs. Far from satisfied, Barratt is on the hunt for more land and only just pulled out of the £1 billion race to redevelop the New Covent Garden site in Vauxhall, citing issues with the landowner having too much control over the pace and the


and, among other things, is in the process of turning an old cinema in the expensive Fulham area into a block of flats. Even Steve Morgan, the hearty Liverpudlian,


is bringing his brand of carefully styled homes inside the economic force field of the M25, or, as he put it to be earlier this year, “putting my tanks on Tony’s lawn”. What Tony Pidgley of Berkeley makes of all


this remains unclear. It is fair to assume that he will not be overly concerned by the arrival of new entrants into the market he has long considered his personal stomping ground. He cannot be surprised, however. The logic for coming to the capital is simple. Demand for homes in London is always, to a lesser or greater extent, decoupled from that in the rest of the country. Prices, and therefore the margins housebuilders can achieve for their developments, have reflected this. Under the strains of the economic slump this imbalance has been hugely magnified. House prices in London are at, or near, pre- recession levels, while demand is so buoyant that many developments are sold up before the foundations have been dug. This kind of hyper sellers market compares ridiculously favourably to other parts of the country. Take the North East, for example, where price falls can still be measured in double digit percentages and developments lie unoccupied, the flags of their builders flapping forlornly amid long-ago finished homes, and the move down south makes sense. As well as the natural demand from workers coming in from other parts of the UK, the money washing into London from overseas is providing a healthy injection of liquidity to the capital’s property market. Cash-rich investors from across the world are snapping up apartments all over town to use as investment properties, holiday pads and places to house children studying in London. The demand for London homes in parts of Asia, such as Singapore and Hong Kong, is so strong that housebuilders will often sell half of a development, off-plan, in one round of sales junkets. Other buyers, from the Middle East, North Africa and the European countries of Greece, Italy and Portugal, are sticking their money into the capital’s bricks and mortar as a safe investment far away from the political and economic turbulence of their homelands. On paper the industry’s migration to London makes perfect sense. The margins are higher and turnover quicker. The appetite for new homes of all shapes and sizes is seemingly insatiable, while opportunities in other parts of the UK are thin on the ground. The problem is that when something seems


23 buildersbreakfast


too good to be true, it usually is. London’s stock may keep rising. The giant metropolis may never stop growing and new homes to feed it may always be in demand. Its streets, though, will never be paved with gold. Housebuilders would be rather wise to remember that. Ed Hammond is construction reporter for the Financial Times


sh showhouse July 2011 | 23


NEWS 07 News 35 55 99


Sustainability News


Affordable Housing News Product News


103 Supplier News 107 Movers and Shakers


REGULARS 20 OnetoOne – with Karen Jones of Redrow 61 Marketing &Media – with Cheryl Markosky 45 66


Inside Out – Heating Product Portfolio – Kitchens 112 Squirrel


29 breakfast BUILDER’S


Alan Brown


with profile


As FairviewNew Homes marks its 50 years in business, GINETTAVEDRICKAS talks to


RichardPaterson about ahousebuilder that likes to runontime.


RUPERT BATES talks to Alan Brown, chief executive of CALA.


showhouse July 2011 | 29 39 75


TEA but no sympathy if late


showhouse July 2011 | 75 whathouse?awards


what house? AWARDS 2011


sponsors


50 75 79


FEATURES 25 Hanson Report The season for selling?


29


Builder’s Breakfast Rupert Bates meets Alan Brown of CALA


Sustainability The heating debate reaches boiling point


Supply Chain George Sell talks to Russell Jervis, MD of SpicerHaart


Housebuilder profile Fairview Homes – 50 years in building


Supplier profile Travis Perkins – the builder’s merchant


83 What House? Awards Four page special on the industry ‘Oscars’


89 93


Planning What will Localism really mean?


Digital Brand new portals


COMMENT 15


16


InSite Keith Osborne asks if buyers are imagining things


PierreWilliams New hope for first-time buyers


Roger Humber The cold truth about energy


City London calling says the FT’s Ed Hammond


59 Simon Graham Bidding blind and borrowing big


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