The Changing Regulatory Environment for Speculative Housebuilding and the Construction of Core Competencies for Brownfleld Development

Abstract

Speculative housebuilding in the United Kingdom faces an ever tighter regulatory environment owing to the increasing impact of the sustainable development agenda. For example, 60% of all new homes in England are now expected to be constructed on previously developed land or provided through the conversion of existing buildings. As speculative housebuilders are responsible for about 80% of all new dwellings built in the United Kingdom, the achievement of this important government target is critically dependent on the ability and willingness of the private sector to respond to public policy. By exploring the main components of the residential development process, the author investigates how far speculative housebuilding will need to change to ensure the successful implementation of the government's brownfield housing target. He suggests that those speculative housebuilders that are enthusiastically building up core competencies in brownfield housing are likely to emerge as the market leaders of the future whereas those companies that continue to rely on past practices and technologies will face an uncertain future as greenfield development opportunities begin to reduce.