Why empty retail spaces could hold the key to our ‘housing crisis’

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Why empty retail spaces could hold the key to our ‘housing crisis’

Social Housing at Pace: the MMC Playbook 

Adam Sanford

Adam Sanford

Framework Operations Lead

South East and London

The organisers of the Housing Festival are bringing together key stakeholders to develop a new local authority playbook which will attempt to address the UK’s structural deficit in housing supply for those in critical need.

The Department for Levelling Up, Housing and Communities (DLUHC) will also contribute to the government-led Modern Methods of Construction (MMC) playbook which will tackle what many regard as a housing crisis.

It is estimated that 100,000 social homes a year are needed to meet the country’s needs and the current housing development approach cannot address this structural deficit in UK social housing.

Clearly, we must think outside the box and as part of this process and with that in mind, I attended a Housing Festival roundtable discussion in Bristol to explore the innovative value strategies including opportunities for outcomes-led commissioning, re-defining value, and streamlining procurement.

Along with my fellow attendees, I was challenged to provide insight into how local authorities might develop a new broader understanding of value to unlock small sites for housing.

We were also tasked with putting forward alternative routes for procurement, new ways of understanding viability and/or the use of buyer’s clubs and frameworks to optimise value in delivery.

It was a fascinating discussion, and these were my key learnings which I hope will provide food for thought for SCF’s local authority partners and offer practical advice for the public sector to meet housing demand for those in critical need.

Conversion of former shops into new residential units

Empty retail spaces can play a significant role in solving the growing demand for housing, especially in urban areas where housing shortages are prevalent.

Converting vacant retail spaces into residential units, known as ‘adaptive re-use’, can maximise the use of existing infrastructure and urban space without the need for extensive new construction and can breathe new life into struggling or declining neighbourhoods.

Local authorities can support such initiatives by implementing flexible zoning regulations, offering financial incentives, and provide technical assistance to developers and property owners.

New ways of understanding viability

 

The sum can be greater than the parts when it comes to residential development.

The public sector has an opportunity to move forward from selling unwanted land, as removing the requirement for profit increases viability options.

Joint venture developments can unlock sites for local authorities with land but no budget in order to deliver housing that is cost-neutral to the public purse.

By partnering with private developers or housing associations, local authorities can leverage their assets and combine resources to deliver much-needed housing.

Pooling of resources allows for the creation of a more substantial development than either party could achieve individually.

Unlocking small sites for development

 

Small but perfectly formed sites can play a more meaningful role in the UK’s housing delivery by addressing several challenges and implementing targeted strategies.

While small sites may individually provide fewer homes compared to large-scale developments, collectively they can have a significant impact on overall housing supply and diversity.

MMC can increase effectiveness in delivering change of use or retail space-based schemes, modularisation and standardisation of construction elements can work well in former office or retail space.

Challenge the preconceptions of MMC to speed up housing delivery

Temporary housing is only temporary for the residents. So, the operators must take all possible steps to ensure that it does not feel temporary or flimsy – in much the same way that MMC does not need to be just about stacked boxes.

And housing comes in all shapes and sizes. It certainly does not need to be house-shaped, so it is important to make the most of our vacant retail spaces, which benefit from being in locations that are accessible, well-connected, close to public services and already waterproof with ready-made services.

The shape and form of housing varies according to cultural, geographical, and functional considerations. What matters most is that housing provides a safe, comfortable, and functional living space for its occupants, but innovative designs and forms should be embraced to meet the changing demands of society.

Routes for procurement

Initiatives such as the Value Toolkit are effective in tying project delivery back to corporate policy and societal need. The two-stage open book procurement process, which we use exclusively at SCF, is less common in residential-led schemes but delivers real value in the wider public sector – so could the residential market learn a lesson here?

Optimise value through use of frameworks

Use of a framework can be applied to package programmes of sites, or to collaborate with other commissioning authorities, to maximise market interest. High-performing frameworks such as SCF or its NACF partners will help you carry out meaningful market engagement to maximise buildability and value for money.

Next Steps

Local authorities can play a crucial role in meeting demand for social housing across the UK by taking proactive steps to increase housing supply, promote affordability, and create sustainable and inclusive communities.

The Housing Festival roundtable showed there is a genuine determination to produce solutions, but it will be very much a team effort and that is why SCF will work with local authorities and our partners in the construction industry to deliver.

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