Meet the Sheffield social enterprise using shipping containers to tackle the housing crisis

A shipping container, repurposed as housing. Image: REACH.

A Sheffield-based social enterprise is hoping to navigate the rocky waters of the UK housing market, by creating affordable 1, 2 and 3-bedroom homes from shipping containers.

Inspired by an episode of Grand Designs, former police officer Jon Johnson set up REACH – Recycled, Environmental, Affordable Container Homes – in January 2017. Following a small grant from charity UnLtd, the social enterprise built a prototype which it is currently showing off to interested parties from around the UK. Johnson believes it can build 6,000 units a year, helping to plug the housing shortfall and creating genuinely affordable homes.

Just 1.4 per cent of homes in large developments approved by planners in Sheffield in 2016 and 2017 met the government’s affordable definition. In Manchester, it was literally none..

“We need to build the houses people want, where they want them, rather than what developers can bully through,” says Johnson. “I’ve got 40 or 50 housing reports. Are we going to keep writing reports or are we going to do something about it?”

During Johnson’s almost 30-year career in the police force, he saw first-hand the effects that insecure and poor-quality housing can have on communities in Britain. “It underpins everything in society. Everybody needs somewhere to live,” he says. “And if you haven’t got a decent place to be, that is adding to mental or health problems. You're onto a loser from the outset.”


“Decent housing is a human right like air and water,” he goes on. “It’s always been done to us by people who don’t care about standards or quality as long as they’re making money.”

Johnson used skills learnt through his furniture recycling store, Strip the Willow, to decorate the prototype, and sourced every bit of second-hand wood he used locally. The panelling used to be a counter in a local Indian takeaway, the cladding on the roof came from a local mosque. The bedroom headboard is made out of a piano, and light fittings are made out of cymbals.

Each of his eco homes will be 60 per cent recycled, built offsite in three weeks and powered by renewable energy sources. “We aim to make use of million tons of waste we put into landfill every year,” he says.

Changing the playing field

But followers of the UK housing market will be unsurprised when Johnson says there are vested interests and serious obstacles to overcome before REACH can achieve its dream of turning a cottage industry something more substantial.

“The same people will just keep profiteering out of everyone else’s misery,” he says. “We're trying to do housing the right way. It’s about people and planet, not just profit. Housing shouldn't be about giving out millions in bonuses at end of the year.”

But REACH won't be able to build any homes without land – perhaps the biggest hurdle for them to get over.

Following the Second World War, the government freed up land and built prefab housing estates around the country. Johnson believes a similarly bold approach is needed to meet the housing demands of the 21st century.

However, the publication of the social housing green paper last week made no promises to build more social housing. It “doesn’t commit a single extra penny towards building the social homes that are desperately needed,” said housing charity Shelter.

Frustration with this situation led Johnson to set up the National Federation of Affordable Building (NFAB), which brings together organisations from across the offsite construction sector who all would like to see a change in policy. “The reason we set up NFAB was because so many SMEs have had conversations with Homes England and got nowhere.”

The current Homes England system for listing land means building companies need to have a turnover of £50m before they can even be considered for public land – a bidding process that excludes all SMEs such as REACH.

REACH does have backing from the Local Government Assocation, though. It also has Sheffield City Council on board, and is hoping the council will soon be given a piece of land to build the first nine homes, freeing up funds for its first off-site factory.

It's clear that it’s going to take some forward-thinking councils for it to succeed. “We need a Dunkirk style situation with SMEs getting some innovation into the market,” Johnson says. “The issue of land and how much its worth is entirely notional. Land is expensive because people think it is.

“If Homes England can ringfence a percentage of the land they give to the big builders every year, and have that for affordable development, we won’t have a problem because the SMEs will have somewhere to access the market instead of queueing up for massively expensive land.”

At the moment, he notes, “Big builders don’t want to do things any differently because they're protectionist of their profit margins. SMEs can’t get a look in. We need to alter that playing field.”

A sustainable trend?

One popular misconception of homes made from shipping containers is that they are too cold in winter and uncomfortably hot in summer. Some critics also suggest that say the current trend for modular housing is a fad.

But Johnson says that residents will need the heating on for only two months a year: the homes are designed using ‘Passivhaus’ principles, which optimises energy efficiency through its design.

“They are light and spacious,” he says. “It’s how we use the offset of parts of the containers. They are like adult Lego. We can use architectural glass and make some fabulous buildings.

“They’re affordable but they will look like architect-designed houses.”

The one, two and three bedroom models will be sold at £35,000, £65,000 and £90,000 respectively. There is already a large waiting list of people ready to move in once they've secured some land.

At present, “I don’t think it’s a trend,” Johnson admits. But “it will take over the market if it's done right. The tech has now caught up and modular housing can be controlled a lot more intelligently in the factory. It cuts down on construction costs, waste and theft of materials from sites. It makes the whole process of housebuilding a lot more efficient.

“It’s a once in a lifetime opportunity to get housing moving in the right direction and get sustainability on the agenda,” he concludes. “That’s not going to happen if we leave it to the big builders.”

Thomas Barrett is the editor of New Start magazine, where this story first appeared. He tweets as @tbarrettwrites.

All images courtesy of the author/REACH.

 
 
 
 

“Without rent control we can’t hope to solve London’s housing crisis”

You BET! Oh GOD. Image: Getty.

Today, the mayor of London called for new powers to introduce rent controls in London. With ever increasing rents swallowing more of people’s income and driving poverty, the free market has clearly failed to provide affordable homes for Londoners. 

Created in 1988, the modern private rented sector was designed primarily to attract investment, with the balance of power weighted almost entirely in landlords’ favour. As social housing stock has been eroded, with more than 1 million fewer social rented homes today compared to 1980, and as the financialisation of homes has driven up house prices, more and more people are getting trapped private renting. In 1990 just 11 per cent of households in London rented privately, but by 2017 this figure had grown to 27 per cent; it is also home to an increasing number of families and older people. 

When I first moved to London, I spent years spending well over 50 per cent of my income on rent. Even without any dependent to support, after essentials my disposable income was vanishingly small. London has the highest rent to income ratio of any region, and the highest proportion of households spending over a third of their income on rent. High rents limit people’s lives, and in London this has become a major driver of poverty and inequality. In the three years leading up to 2015-16, 960,000 private renters were living in poverty, and over half of children growing up in private rented housing are living in poverty.

So carefully designed rent controls therefore have the potential to reduce poverty and may also contribute over time to the reduction of the housing benefit bill (although any housing bill reductions have to come after an expansion of the system, which has been subject to brutal cuts over the last decade). Rent controls may also support London’s employers, two-thirds of whom are struggling to recruit entry-level staff because of the shortage of affordable homes. 

It’s obvious that London rents are far too high, and now an increasing number of voices are calling for rent controls as part of the solution: 68 per cent of Londoners are in favour, and a growing renters’ movement has emerged. Groups like the London Renters Union have already secured a massive victory in the outlawing of section 21 ‘no fault’ evictions. But without rent control, landlords can still unfairly get rid of tenants by jacking up rents.


At the New Economics Foundation we’ve been working with the Mayor of London and the Greater London Authority to research what kind of rent control would work in London. Rent controls are often polarising in the UK but are commonplace elsewhere. New York controls rents on many properties, and Berlin has just introduced a five year “rental lid”, with the mayor citing a desire to not become “like London” as a motivation for the policy. 

A rent control that helps to solve London’s housing crisis would need to meet several criteria. Since rents have risen three times faster than average wages since 2010, rent control should initially brings rents down. Our research found that a 1 per cent reduction in rents for four years could lead to 20 per cent cheaper rents compared to where they would be otherwise. London also needs a rent control both within and between tenancies because otherwise landlords can just reset rents when tenancies end.

Without rent control we can’t hope to solve London’s housing crisis – but it’s not without risk. Decreases in landlord profits could encourage current landlords to exit the sector and discourage new ones from entering it. And a sharp reduction in the supply of privately rented homes would severely reduce housing options for Londoners, whilst reducing incentives for landlords to maintain and improve their properties.

Rent controls should be introduced in a stepped way to minimise risks for tenants. And we need more information on landlords, rents, and their business models in order to design a rent control which avoids unintended consequences.

Rent controls are also not a silver bullet. They need to be part of a package of solutions to London’s housing affordability crisis, including a large scale increase in social housebuilding and an improvement in housing benefit. However, private renting will be part of London’s housing system for some time to come, and the scale of the affordability crisis in London means that the question of rent controls is no longer “if”, but increasingly “how”. 

Joe Beswick is head of housing & land at the New Economics Foundation.