The Residential Development market is in high demand. As the population continues to grow our need for more residential properties grows with it. Residential Development as an industry has always been the heart of how we live in the UK. The impact of implementing new buildings which are more environmentally friendly, as well as better insulated is important if we want to consider meeting net zero by 2050.
Residential Developers Industry insights
The Residential Development industry contributes around £19.2 billion a year to the UK economy. Around 600,000 people work in the domestic supply chain. While many people believe that we are running out of space here in the UK, around less than 10% of the land in England has been developed. That leaves only 1.1% of land that has been developed into residential homes. The availability of developable land remains a key barrier to house building.
When looking at the Lyons Housing review, it is estimated that agricultural land is worth around £20,000. The means that per hectare the same land could be worth in the region of £1.2 million for residential purposes. That number only increases when you reach locations such as Oxford and London where the figure is around £4 million.
Looking back at the total output of housing there has been a strong growth since 2013. This growth has been predominantly driven by the new private housing market. For larger residential development firms, those who employ 100+ people or have an annual turnover greater than £60 million, these firms make up approximately 50% of new public housing. Compared to 40% in new private housing in the third quarter of 2019.
When you look at other regions, we can see that there has been strong growth in the North West and South East for new private housing. The quarter on quarter growth in Q3 in 2019 was 9.5 % and 8.1%.
However, when we consider the data from the last year we can see that new orders fell by 11.9% in 2020, recording £55,631 million. This is the lowest figure recorded since 2013 and has been driven down in part by the private housing sector. Private housing new orders saw a fall of £2,904 million in 2020. There were a few sectors which had seen positive growth such as infrastructure and public new housing, with the former seeing most growth in electricity and roads.
Overall the yearly decrease in private housing was around 15%, however we can see that over 30% of construction firms and employees are concentrated around London and South East.
Salary can vary based on your location, skills, and experience. It is important to understand the average salary for you role as this can help you negotiate a better salary, or provide you with more clarification on what you should expect to earn.
The average salary for various roles are as follows:
Site Managers = Average salary £56,756 per annum
Quantity Surveyors = Average salary £52,239 per annum
Constructions Managers = Average salary £50,054 per annum
These are indications on what the average salary is across the UK. As 30% of businesses are located in and around London you can expect a difference.
Site Managers = Average London salary £59,718 per annum
Quantity Surveyors = Average London salary £62,961 per annum
Construction Managers = Average London salary £58,963 per annum
These average salary may vary depending on skills and experience, as well as qualifications.
|Site Managers||Assistant/Finishing Managers||Contracts Managers|
|Technical Co-Ordninators/Managers||Quantity Surveyors||Commercial Managers/Directors|
|Contrustruction Managers/Directors||Project Managers|
Each role will require different qualifications as they are all individualised. You may be expected to obtain various health and safety certificates as well as first aid training if you find yourself on site at residential developments. Certifications such as CSCS may be beneficial as well as any role specific courses you can obtain.
There are various softskills you will need in this industry such as communication, organisational skills, as well as highly detail orientated, due to the nature of the industry.
Contact our experts now if you’d like to discuss your next role or recruitment options with us.