Exploring the Impact of the Recession on British Volume Housebuilders: A Behavioural Analysis

The 2008/2009 recession had a pronounced impact on the financial performance, stability and output of Britain's volume housebuilders, leading to a historic decline in new housing supply. Whereas current policy ambitions signal the need for a substantial increase in speculative housing provision, little is known about how the recession affected the attitudes and motivations of Britain's volume housebuilders or what such behavioural legacies might mean for post-recession housing delivery. Indeed, whilst the British economy and housing market are showing positive signs of recovery and growth, speculative housebuilding completions remain well below policy ambitions. It is therefore unclear whether Britain's volume housebuilders, in light of their recessionary experiences, have the capacity to deliver such a step change in housing supply. In addressing this gap in knowledge, this paper examines the recessionary attitudes and motivations of Britain's biggest housebuilders and, in doing so, outlines a number of key challenges that may confront policy-makers and the housebuilders themselves in their attempts to meet the housing needs of a post-recession Britain.