How we can build 60,000 homes

Opinion on whether his £60,000 homes can be built remains, understandably, mixed. The South-east – a key area in Prescott’s plans – could face a particular challenge. Build costs in London stand at £1400 for every square metre: based on this figure even a 45m2 one-bed flat would cost £72,000 (allowing an additional 15% for communal areas). By building more cheaply we risk compromising ecological performance and current space standards.

Density could be a further concern. The most cost-effective structure would be a building with four flats on each floor and four storeys high, avoiding the need for a frame, but this fails to make the most cost-effective use of land.

There is a solution. With a strong commitment and large enough volumes it’s possible such challenges could be overcome using off-site manufacturing.

But the UK’s off-site manufacturing industry is not yet equipped to deliver at the capacity required and contractors would need to turn to Europe. This may not be a problem, but increasing capacity and use of overseas manufacturers brings a new set of logistical and cost implications. Planning, pilot schemes, financial management and flexibility will be crucial. Housing associations and contractors will need to work closely with consultants to achieve this.

Can we achieve Prescott’s plan by 2010? Probably – but project management will be the key.

Tim Young, MRICS, partner (member) John Rowan & Partners