When recession hit in 2008 it brought a difficult time for a housebuilding sector which, nationally, already had a way to go to meet housing needs. small to medium developers particularly felt the full weight of the financial blow.

With Help to Buy among initiatives credited with helping the industry back on its feet in recent years though, we look at how builders of various sizes are providing homes in Merseyside again and what further progress can be made.

Nationally housebuilding is said to be bouncing back with levels seeing their steepest rise in decades, and it’s a boost to the industry that hasn’t passed Liverpool and wider Merseyside by.

Figures focusing on 2014/15 from the Home Builders Federation (HBF) show a 25% rise across the country, with Liverpool itself seeing 1,500 net additions compared to 1,000 the year before.

Such a contribution has enhanced not only the number of house building jobs but also the wider community and economy, although HBF data highlights there is still a way to go before “enough” homes are being built across Merseyside, therefore allowing the county to reach its full potential.

“The house building industry contributed 7,482 jobs, £2.7 million towards education, £17m in tax contributions, 400 affordable homes and payments of £38.5m to local authorities for further provision of new affordable homes,” according to the HBF’s Merseyside research, although it adds: “If Merseyside were to build enough homes – that being an additional 1,393 – the industry could contribute an extra 5,991 jobs, £2.2m towards education, £13m in tax, 320 affordable homes and payments of £30.8m to local authorities for affordable homes.”

So how is this increasing number of properties being supplied in the region, and what steps can be taken to further achieve housing goals?

The fall and rise of small builders

Smaller to medium-sized housebuilders had been considered as a source of significant housing supply before experiencing a ‘collapse’ in recent decades and particularly during the latest recession.

The HBF says their struggle was a consequence of “increasing complexities of the planning and regulatory systems and more recently because of [smaller housebuilders’] inability to secure finance”. However the improving economy and new measures of support for SMEs are said to be helping this section of the industry to return to form.

For instance, in July 2015 the government matched a £50m investment from Lloyds Banking Group to create a £100m Housing Growth Partnership which would recognise and support the role of small builders – the number of firms building between one and 100 units a year.

A number of small to medium housebuilders are currently active in Merseyside, including locally-based Forth Homes, which has just completed its inaugural year in business and has delivered or commenced construction on more than 30 units across the North West.

“Since the Help to Buy equity loan scheme started we have seen a significant increase in the development of good quality housing in Liverpool.”

Hailing 2015 as a “great first year for Forth Homes,” the growing firm has set a target to increase its number of units to 100 in 2016 and 250 in 2017.

“The areas we develop in are carefully selected and the house types we build are designed and tailored specifically to suit the demographic, which in turn results in high demand,” says a spokesperson for the developer.

Meanwhile Sandy Kelly, head of the government- appointed Help to Buy North West, suggests small developers – this time defined by those building less than 40 units – are currently making a substantial contribution in the Liverpool region to new-build homes being offered through the equity loan scheme, enabling buyers to purchase a new property with a 5% deposit.

“We work with a wide range of housebuilders in the Liverpool area and small developers make up around 40% of that total,” she says.

“Since the Help to Buy equity loan scheme started we have seen a significant increase in the development of good quality housing in Liverpool and some sites are of significant scale over a number of phases.

“There are a number of sites being developed on former local authority land which cater for a range of purchasers from first-time buyers through to large family housing.”

Sandy believes the Help to Buy equity loan will continue to be an “impetus for housebuilders of all sizes” to bring forward developments until 2020.

Speaking volumes

Whilst small housebuilders are growing, volume builders are continuing to dominate Merseyside’s supply of homes with several gearing up for increased activity in 2016.

For example, Redrow completed 120 homes in the Liverpool region last year and is expecting to increase its delivery to around 146 over the next calendar year.

Executive homes are said to have been a driving force for the developer’s latest schemes, with four-bedroom detached properties particularly prompting demand, and it’s a property type which the firm says the Liverpool market had been lacking in.

“There’s been a shortage of this type of property in recent years and people have often had to look outside the city to find a home,” explains Redrow development director Faye Whiteoak. “However, we are seeing people moving back to the area as we build more of these family homes.

“Demand is so high for one new development of 21 homes – Knights Park in Woolton – that we have over 250 people who have already registered an interest before its launch in spring. That’s around 12 people for every home being built.”

The Knights Park scheme is lined up as the first to get underway in 2016 via the Liverpool Housing Partnership – which will see Redrow and partner Liverpool Mutual Homes (LMH) work in conjunction with Liverpool City Council to address requirements around the city with an aim of creating 1,500 brand new homes and bringing 1,000 back into use.

“We work with a wide range of housebuilders in the Liverpool area and small developers make up around 40% of that total.”

“This pioneering relationship is providing homes across the board to meet all levels of housing need, as the sale of land for private housing is helping to fund new sites for affordable properties,” adds Faye.

Fellow large-scale housebuilder Countryside has also worked with Liverpool City Council during 2015, when it delivered 244 new properties at its NGV Liverpool and Queen Mary Place schemes in the city.

“There’s a real demand for high quality and affordable homes across Liverpool and continued investment is vital not only for local residents, but also for the wider community,” says Peter Vella, the company’s regional sales and marketing director.

“The next year will see significant investment into Knowsley, with the launch of five new Countryside developments which, once complete, will bring 583 new homes into the borough, plus an additional 100 new homes at our existing developments.”

The housebuilder is projecting that 149 of these Knowsley homes will be finished in 2016 at the new developments.

Keep on growing

Moving forward, how can small to medium housebuilders continue strengthening their area of the housebuilding sector and increasing its contribution to the supply of homes?

According to Forth Homes, further land opportunities being opened up to such firms by local authorities which have often worked with volume builders could be key.

“The opportunity to acquire such land would allow local housebuilders to grow and offer new housing stock to the market,” says a spokesperson for the firm.

“Affordable housing requirements stipulated by some councils on low market value sites are hindering developers supplying more units to the market as it can destroy the viability of many schemes, and have a negative impact on the regeneration of local areas.

“We believe that the government recognises that this is a problem and as such there is talk about helping developers build more units by introducing ‘starter homes’. We look forward to hearing more about this and are confident it will offer some promising opportunities for us and other medium sized house builders in the future.’’