Self-build is taking the lion’s share of Germany’s new-build housing market. James Barlow and Karin Stockerl of SPRU (Science and Technology Policy Research) at the University of Sussex look at how that has happened, and the lessons for UK housebuilders.
Existing British housebuilding techniques provide customers with relatively limited choice in housing design, finish or function. Moreover, what is built is often of variable quality and expensive, partly because of low levels of technological innovation. The scale of the problem has been highlighted in numerous reports, including that of the Construction Industry Task Force.

Initiatives like 2000 Homes and innovative housing demonstration projects focus on the speculative and social housing markets. However, self-build - where the individual household is responsible for the production of the house, including land purchase - has not been given serious consideration as a possible lever for change and innovation in the industry. Examples from Germany show that this particular sub-sector can be the source of process and product innovation.

Compared to other European countries, where even in major industrialised economies self-build can represent up to two-thirds of the total new build market, relatively little UK housing is produced this way. Estimates suggest the number of units grew from 12 000 in the late 1980s to 25 000 in 1998, but this still represents only 10-12% of the total UK new homes.

There is a range of possible routes for households obtaining housing through self-build. Most common are either part building your own home, commissioning an architect and small builder, or buying a prefabricated ‘catalogue’ house from a specialist company. In the past homes offered by catalogue housebuilders in Germany were perceived as lower standard - they were often called ‘cardboard houses’.

However, this perception has changed with the introduction of advanced structural wall, ceiling and roof systems, with high degrees of prefabrication and standardisation. Catalogue housebuilding is now the most innovative and technologically advanced housebuilding sector in Germany. Suppliers are in direct contact with their customers, who can choose from a variety of room sizes and layouts, finishes and fittings.

Firms tend to specialise in specific types of building technology and have their own systems. For instance, Hufhaus uses a combination of timber frame and glass systems, while Hebelhaus uses a lightweight brick system for walls, ceilings and roof. German homebuyers are increasingly favouring catalogue housebuilders because of their ability to deliver short construction times, high quality and good customer service. In 1997, catalogue house builders sold 145 000 houses in Germany - equivalent to about 70% of the UK new homes market.

What if it happened here?

The availability of land for individual households is crucial for a possible increase in the level of self-build housebuilding. The barriers faced by individuals seeking suitable building plots in the UK are not present elsewhere.

In France specialist land assembly firms provide serviced land to individuals and in Germany almost all such land is obtained from local authorities. Nevertheless, there would be advantages in raising the level of self-build in the UK.

Apart from the fact that this approach means there is a closer link between housing consumer and producer – and thus more likelihood that people’s housing requirements will be fulfilled – greater diversity in housing supply routes may have a knock-on effect on innovation by the speculative housebuilding industry.

The case of Germany shows that the self-build market can produce highly innovative housing using a huge variety of technologies not normally found in the UK.