Building methods should stretch beyond bricks and mortar – Barclays

The importance of the humble brick is often overlooked in a market full of complexity. As one of the oldest known building materials, bricks are said to date back to 7000 BC. Now found in any good DIY store, they have evolved from sun dried mud in a far more reliable clay and sand composite to become an integral component within the construction industry. On such shelves up and down the country, the price of an individual brick may differ slightly but only by the matter of a few pence here and there. However, the end cost of a brick, when calculated from the price and size of the average house in the UK, can certainly vary significantly between different regions.

Research from Barclays Mortgages and the Centre for Economics and Business Research (Cebr) highlighted that the most valuable brick in Britain could be found in London, at a cost of £121.08. This was followed by Oxford (£95.50), Cambridge (£91.61), Brighton and Hove (£71.53) and Bristol (£47.24). Belfast was highlighted as the place to get the most brick for your buck in Britain at £22.09 with Glasgow (£22.55), Liverpool (£25.87), Nottingham (£27.19) and Leicester (£28.58) all challengers to this title. Overall, the cost of a single brick was said to have increased 33% in the past decade from £35.70 in 2006 to the current value of £47.44. Within this research it was particularly interesting to note the regions and cities outside of London experiencing significant growth in house prices. While a north-south divide does remain, cities such as Sheffield, Nottingham and Leicester are experiencing strong growth, and this is forecast to continue through to 2020.

However, it’s not only bricks and mortar which will continue to drive the regional and national property market. You only have to turn on the TV to see a variety of programmes illustrating a range of modern methods of construction (MMC). And, with a lack of available building land, a skills shortage and housing supply gap all evident, it’s little wonder that a number of alternatives are being investigated by self-builders and developers across the UK.

In recent years many different MMC techniques and options have emerged, driven by demand for more eco-friendly and energy efficient homes. In terms of lending practices, although strides are being made in this area limitations do remain. As such, it’s vital for intermediaries and clients to undertake the necessary research when evaluating preferences within this field, in terms of cost, availability and efficiency.

Moving forward this is certainly an area which will continue to generate even more momentum and one which intermediaries should be keeping their eye on. It only takes one of the major housebuilders to really get behind a wide-scale MMC initiative for it to make a significant impact on supply levels, demand and therefore availability and affordability. So much so that future research could well incorporate many different materials in addition to the good old-fashioned brick.