Urgent reformation required to curb monopolistic tendencies in the housebuilding industry, as asserted by Kevin McCloud.
Britain's housing crisis calls for a radical overhaul of the housebuilding industry, according to Grand Designs presenter, Kevin McCloud. In a bold critique, he labeled the UK's construction sector as a corrupt oligopoly that's long past due for root-and-branch reform.
McCloud laid bare the track record of major housebuilders, stating that they've decimated the sector's supply chain. "These giants have miserably failed to meet our basic needs," he said to City AM. "It's a sweet deal for those at the top, but a nightmare for everyone else."
The UK's housing market is a monopoly held by a few heavyweights like Barratt Redrow, Taylor Wimpey, and Persimmon. These bigwigs have often faced accusations of anti-competitive behavior, throttling the supply of new homes.
Interestingly, McCloud, who himself experienced the bitter taste of failure when his eco housebuilding company went under last year, claimed that these major developers hold excessive power over suppliers. "It's a dog-eat-dog world out there, and the little guy has nowhere to turn," he lamented.
Advocating for a more competitive market, McCloud welcomed the growing calls for reform. He argued that increased competition among smaller builders would lead to a better standard of construction and a boost in home supply.
McCloud pointed to Austria, a country where 82% of new homes are custom or self-built, as an example to follow. Unlike the UK, Austria's housing landscape is not shackled by the market's whims, making it possible to maintain a consistent supply of custom homes.
To tackle the housing crisis, the incoming Labour government has set an ambitious target to build 1.5 million homes over their term. However, industry experts have questioned the feasibility of this goal amidst a host of hurdles stifling the housebuilding and construction sectors.
Interest rate hikes have eroded the margins of the financially fragile sectors. Skills shortages, exacerbated by Brexit and the pandemic, remain a persistent issue. "We've lost vital skill sets within construction," McCloud lamented. "It's high time we revamped our training programs to replenish our workforce."
McCloud spoke these words ahead of Grand Designs Live in London, the UK's premier home and design exhibition, running from May 2-5. With his suggestions, he hopes to set the stage for much-needed change in Britain's housebuilding industry.
In light of the housing crisis in Britain, Kevin McCloud, presenting Grand Designs, called for a transformation of the housebuilding industry, accusing major developers like Barratt Redrow, Taylor Wimpey, and Persimmon of wielding excessive power and stifling competition in the finance and business sector. Recognizing the inadequacies of the current situation, McCloud advocated for a more competitive market, drawing inspiration from countries like Austria, where a majority of new homes are custom or self-built, potentially providing a solution to the UK's housing crisis.
