Collaboration for successful residential housing delivery
From initial design to completion, residential development is a complicated and multi-phase process that involves a diverse professional team from numerous companies working together in synergy. Our Head of Construction, Paul Neto, explores what makes partnerships successful to form our latest white paper.
The UK is in the middle of a housing crisis with too few homes being built to meet present or future demand. This means that resourceful partnerships within property have never been more important.
Thankfully, the industry has made positive progress on many fronts and collaboration between companies is increasingly standard practice. In the last two years, there has been a significant increase in residential construction and the number of new dwelling ‘starts’ is on the rise.
There is a general consensus between government and industry that the UK needs to deliver between 220,000 and 250,000 new homes a year to solve the housing shortage.
Will collaboration within the supply chain make for an efficient and effective step forward in solving our housing crisis? What are the facts, processes, and resources involved, and what kind of working practices do we need to adopt to encourage collaboration? What role will technology and ‘big data’ play in facilitating these partnerships?
Paul Neto explores these questions to discuss this concept of collaboration in our white paper; Successful Partnerships.
Download the full white paper now.
Current housebuilding numbers
- Annual new build dwelling starts totalled 164,960 in the year to June 2017, up by 13% compared with the year to June 2016
- During the same period, completions totalled 153,330, an increase of 11% compared with 2016
- The government aims for one million homes to be built between 2015 and 2020
- A further 0.5 million homes to be delivered by 2022
- The UK population is projected to increase by 9.7 million over the next 25 years from an estimated 64.6 million in mid-2014 to 74.3 million in mid-2039
- A report by the Home Builders Federation put the economic footprint of UK housebuilding at £19.2bn
- 61% of construction professionals now use Building Information Modelling (BIM) technology to create and manage digital information to boost the efficiency of activities around asset delivery and operation
A study by management consulting firm McKinsey & Company found that businesses that regularly collaborate with their suppliers have an average EGBIT (Earnings Before Growth Interest and Tax) growth rate double that of companies that do not.
Our opinion? Collaboration is a win-win approach for all parties.
It’s no secret that the property industry has had mixed success when it comes to establishing and developing long-term, sustainable and innovative partnerships. However, the UK is facing an enormous housing challenge and closer collaboration is clearly part of the solution. Collaboration within the housing supply chain is not just important to housing delivery, it also helps companies, no matter their discipline, achieve commercial success. What’s more, as innovative technologies create and enable new processes, the chance to create new alliances has never been easier and the rewards never greater. In recent years, Delph has witnessed the benefits of a collaborative approach first hand. We have developed a series of funding models which allow us to work closely with builders and developers, thereby enabling them to build schemes with the certainty of a guaranteed exit strategy once the development is complete. One of our recent projects, Orleans House in Liverpool, would likely not have been deemed feasible by institutional lenders. However, our forward funding model enabled the scheme to proceed. The result has been a development which is proving extremely popular with local first-time buyers and buy to let property investors alike, as well as a financial success for all those involved.
Download Delph’s Successful Partnerships white paper and read the report in full to understand how industry reports by Latham, Egan, and Wolstenholme are important to revisit, get practical advice on how to optimise collaboration in the workplace, and unpack big concepts like Lean Thinking.
Paul Neto, Head of Construction at Delph Property Group