WORKING FROM HOME:
PLANNING FOR THE NEW NORMAL?
Barratt Developments PLC
December 2021
EXECUTIVE SUMMARY
The Coronavirus pandemic instigated a step change in the
approach to working from home for many people across a range
of jobs and industries. This research – conducted by Lichfields,
working with Savanta – uses a survey to explore how people have
responded to the experience of working from home, what impact
it has had on how they use their living accommodation, and how it
might shape their future property choices.
47%
of those in employment
worked from home to
some degree in 2020
72%
of workers want a mix
between ofce and home
working in future
78%
of people enjoyed
working from home
68%
believe it offers a better quality
of life, but this drops to 48%
for younger workers
47-52%
of younger and middle aged workers reported a negative impact
on mental health (the gure was just 20% for over 55s)
326%
increase in use of ‘ofce’, ‘workspace’ and ‘working
from home’ as search terms on Rightmove in 2020
49%
feel they do not have sufcient amount or quality of space to work at home
(the gure is 54% for younger workers and 27% for older workers)
69%
of workers would prefer an
additional room in their home
as a dedicated ofce space
70%
of those in the market for new homes favour
a home that is ‘working from home’ friendly
THE RESEARCH IN FIGURES
Working from home is here to stay
Although the shift to working from home was one compelled by the pandemic, the evidence suggests it
is here to stay. 7.5m workers in the UK are hoping to do their jobs from home permanently, double the
estimated number pre-lockdown, and 72% want a mix between home and office working in the future.
Many businesses and employers – large and small - in key economic sectors are now adopting a wholly
or hybrid approach to remote working. Many workers who might previously have worked from home only
on an occasional basis, will now do so regularly, with their employers facilitating this shift.
People’s satisfaction with this way of working is influenced by size and quality of their homes, with
younger households in smaller accommodation having a less positive experience
For many, working from home is popular – our survey shows a sizeable majority have enjoyed the
experience – but there is less satisfaction for younger households, even though most of those aged
18-34 do still favour a hybrid approach. Just 52% of all households believe their home is well suited for
working from home, with many people having to work from their living room or their own bedroom. Just
28% had a specific study or home office from which to work.
The younger households with a less positive experience of working from home were also the group
with smaller homes, with 54% of 18-34 years olds having insufficient space, compared to 27% of older
respondents. Many of those less satisfied cited the toll on their physical and mental health, with younger
workers more likely to report a negative impact (52% of younger workers compared to just 20% of over
55s).
Working from home has led to a fundamental shift in what people want from their homes.
The majority of home purchasers now demand more space
Unsurprisingly, this impacts on what people want from their homes. In 2020, Rightmove reported a 326%
increase in use of home working search references. The change in working patterns has caused many
people to revaluate the space requirements in their homes. Having an extra room to create a dedicated
space to work and having a ‘work from home friendly’ layout is appealing for seven in ten home
purchasers.
Across all age groups, two thirds said they would take working from home into consideration when
making their next home move, and a similar proportion believed new homes should be built and
designed with working from home in mind. This view was held even when it resulted in a ‘cost’ in the
form of less space in other aspects of their home.
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
5
A key purpose of the planning system is to meet housing needs, and those needs have clearly changed
Ordinarily, one would expect home builders to respond to this clear market trend by adapting the size
and configuration of the houses they build. However, this first needs a planning policy response. In
England, Local Planning Authorities (LPAs) are required by the National Planning Policy Framework
(NPPF) to set local policies on housing mix and to provide a range of type and size of housing based on
up to date evidence in Strategic Housing Market Assessments (SHMAs). In many areas, that evidence will
be pre-pandemic and based on statistical correlations between household size and dwelling size that do
not take account of the changing way in which many households will expect to occupy their homes. They
set policies in plans that specify that new developments comprise a certain mix of dwellings in terms of
the number of bedrooms, often with a large proportion of one and two bedroom properties.
Often these policies are based on trends that indicate a reduction in household size as a result of an
ageing population, empty nesters, and older single people. However, there the relationship between
household size and dwelling size for these households is weak. Many already occupy – and are very
satisfied with - their family homes and three quarters of all households in the private housing sector
have one or more spare bedrooms. Younger working households – who are more likely to be seeking
their first homes or are trading up, and facing challenges accessing homes – are now seeking an extra
room in their accommodation, and their needs are less likely to be satisfied by one or two bedroom
properties favoured by housing mix policies.
Policies in local plans require urgent review to support provision of the larger homes demanded by
those working from home
Local policies that seek to control the size and mix homes need to be re-evaluated in light of the trends
identified in this research. The changes are threefold: 1) local authorities reviewing their plans should
take into account that their existing housing mix policies will be based on out-of-date evidence and
unlikely to reflect the changing way people occupy their homes. This is likely to support moves to update
these policies, based on the latest evidence; 2) pending these updated policies (which will often take
several years to prepare), local authorities should be flexible in interpreting their existing out-of-date
policies when determining planning applications, particularly to encourage delivery of homes that are
work from home friendly; 3) planning judgements on this issue should recognise that the provision of
accommodation that caters for home working has an obvious benefit to the well-being of households
and to local economies.
Without an urgent review of housing mix policies, the existing mismatch between the supply and demand
of homes will become even more acute, making family homes – with a dedicated space for home
working - even less affordable for those who most need them, with consequential harm to the well-being
of the country’s working population.
1.0 Introduction 1
2.0 Background 2
The trend for home working was increasing
even before the pandemic 2
Emergency measures stimulated a step change
in attitudes towards working from home 2
Have priorities changed for home buyers? 4
Summary 4
3.0 Result of Survey 5
A higher proportion of home buyers are working
from home than ever before, and most want to continue 5
Home environment and age influences the experience
of working from home, and how respondents use their home 5
Most home buyers expect to work from home more in the future.
Half are not satisfied their existing home completely meets their
requirements, and this will influence their choice of layout and
size of home when buying their next home 9
Summary 11
4.0 Conclusions and implications 12
CONTENTS
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
1 2
2.0
BACKGROUND
The trend for home working was increasing even before the
pandemic
2.1 While the pre-pandemic rates for working from home were relatively small, they were increasing. Before
the Coronavirus pandemic led to a rapid increase of home working (2019), the ONS reported
1
that “1.7
million people in the UK mainly work from home”, while another “8.7 million said that they have worked
from home at some point” This followed years of steady growth; in 2015, 4.3% of the workforce mainly
worked from home, by 2019, this had increased to 5.1%.
2.2 At this time, industries such as information and communication, professional, scientific and technical
activities, financial and insurance activities, and real estate activities, provided far more homeworking
opportunities than others. Typically, more senior roles and older people were also more likely to work
from home than others
2
.
2.3 This pattern is also reflected by the Chartered Institute of Personnel and Development (CIPD) who in April
2020 showed that more people worked partly from home and partly from offices – a hybrid workplace
3
.
They found that “29.6% of people worked from home in the past 12 months, and a further 8.5% of people
had the option to do so but did not exercise it”. CIPD identified technology as the biggest driver of home
working. Supporting the ONS findings, CIPD also found that age is the key determinant of working from
home with older workers more likely to work from home than their younger colleagues in categories.
2.4 The Trade Union Congress saw the progress and increases as relatively slow going before the pandemic
4
and estimated that “four million more people want to work from home at least some of the time but
aren’t given the chance”. This finding is in line with the other sources, with them all suggesting that while
working from home was becoming more popular before the pandemic it had not been sufficiently trialled
or normalised to transform the workplace or homes.
Emergency measures stimulated a step change in attitudes
towards working from home
2.5 While the pre-pandemic uptake of working from home was small and increasing slowly, the pandemic
created an instant (and enforced) surge in home working. Statistics from ONS show us that in April 2020,
“46.6% of people in employment did some work at home” (Office of National Statistics”
5
– up from the
5.1% high in 2019.
2.6 As the ‘work from home where possible’ guidance transformed working practices, data from this time
also showed a shift in the demographics of home workers, with 25-34 year olds (54.3%) most likely to
work from home
6
. With the age of the average first time buyer in the UK now at 32 (English Housing
Survey 2019-20) this experience will influence the priorities of the next cohort on to the first rung of the
property ladder.
1.0
INTRODUCTION
1.1 The Coronavirus pandemic has shown that some level of working from home is now a necessary option
for a range of jobs and industries. This was not a new phenomenon. Office-based businesses were
already showing signs of greater flexibility, in some cases seeking to attract employees with flexible
options to work away from the office, and re-thinking what workplaces can offer.
1.2 The onset of the pandemic accelerated this trend significantly: businesses and individuals were forced
to adapt overnight to new arrangements, with most formerly office-based businesses operating largely
remotely under “work from home where possible” guidance.
1.3 This sudden change to business operations, enabled by the growth of cloud computing and video
conferencing, has transformed the way many people work. In turn, many workers have had to use their
homes as workspaces to an extent they will not have expected at the time they made choices about the
accommodation they wanted to occupy.
1.4 Alongside a re-evaluation of the importance of gardens and the proximity to open space, understanding
how a home can provide office space has become an important consideration for many. For those that
are home-working even as part of a hybrid mix with office life, what does this mean - working from the
kitchen table? A spare bedroom? A home office/study?
1.5 Just as home buyers are already considering what new demands they have of their accommodation,
house builders - looking to service this changing demand – are looking to understand those
requirements. To meet this challenge, housebuilders need to change the types of home they build to
respond to a new facet of market demand.
1.6 However, it is not uncommon for Local Planning Authorities to adopt prescriptive housing mix policies
on individual developments, seeking to use a local plan to impose a mix of dwelling sizes (measured
by number of bedrooms) on sites, based on demographic trends shown in their Strategic Housing
Market Assessments (SHMAs). Frequently, these mixes prescribe that developments are skewed to
provision of two or three-bedroom properties because of an assumption (not necessarily correct) that a
projected increase in smaller households in an area means that new dwellings should also be smaller.
The SHMAs underpinning these policies will draw conclusions about how people occupy homes that is
based on data (often drawn from the Census 2011) that pre-dates the pandemic.
1.7 So, while home working has been mandated to many, if the shift in working culture endures – as
seems likely - what impact will this have on how people occupy homes? And should this influence the
formulation and application of housing mix policies in local plans and the determination of planning
applications?
1.8 To inform the debate, Barratt appointed Lichfields, working with Savanta – a market research company
– to undertake survey work looking at how people have responded to the experience of working at
home, what impact it has had on how they use their accommodation, and how it might shape their
future property choices. The research aims to draw useful implications and conclusions for planning
practitioners across the sector.
1
Source: ONS (2020) Coronavirus and homeworking in the UK labour market: 2019 - The extent to which different people in the labour market work from
home, either on a regular or occasional basis. Available here
2
ibid
3
CIPD (2020) Flexible working: lessons from the pandemic From the ‘nature’ of the work to the design of work. Available here
4
In research published in its blog. Available here
5
Source: ONS (2020) Coronavirus and homeworking in the UK: April 2020. Available here
6
ibid
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
3 4
2.13 These articles are just three of many published in the Summer of 2021 providing examples of
organisations that now expect their employees to divide their time, with typical splits being three days in
the office and the remainder at the discretion of staff. Although patterns will vary by sector (with it more
likely in professional services than, say, manufacturing) and by role (with many still requiring in-work
presence) it is not confined to large organisations:
“More than two-thirds (66%) of businesses continue to offer some remote working, according to a
survey from the British Chambers of Commerce. The poll of more than 900 businesses showed almost
three-quarters of firms expected at least one team member to continue working remotely over the
coming year.”
14
Have priorities changed for home buyers?
2.14 The impact this shift in working patterns has had on the property market has already been noted.
Research by Savills
15
outlines how enforced home working has likely changed the way we do things in
the future: all respondents to the its Global Sentiment Survey of research heads across 31 countries
expected home working to increase, and that this would have a direct impact on the residential market
as households reassess their needs. 90% expected demand for home offices to increase, while 86%
expected an increase in demand for high-speed internet.
2.15 The Guild of Property Professionals found that, in a survey of buyers, the importance of a home
office increased from 12 to 21 per cent of buyers
16
. Reflecting this, over the year October 2019-2020
Rightmove reported an increase of 326% in use of terms ‘office’, ‘workspace’ and ‘working from home’
in property listings, as estate agents mirror the changing demand for home buyers
17
. This builds on
a substantial interest even prior to the pandemic: survey work by Lloyds found that 40% of employed
people say when house hunting that it is important there is suitable space to work from home
18
.
Summary
There is a general consensus that working from home will continue to play a much larger part of
working life than before the pandemic. This change in how homes will be used will surely also impact
on the priorities of home buyers when they choose homes. To explore these issues, Barratt elected to
carry out research of potential or recent home buyers to better understand how house buyers will use
their homes in a post pandemic world, their experience of working from home and what this says about
future home requirements.
14
ibid
15
Savills (2020) “The impact of COVID 19 on real estate”. Available here
16
Reported in Property Industry Eye (2020) “Working from home – how it has impacted the property market”. Available here
17
Rightmove (2021) “Work from home phrases up over 300% and four and five bed homes flourish”. Available here
18
Reported in This is Money (2020) “Hunting for a home with an office”. Available here
2.7 The extent to which workers expect changes in their working practices to be permanent will determine
whether the patterns of demand are upheld. For example, those who expect to be working at least
half their working week from home in the long term will likely factor this into their demands for a new
house.. A survey of business leaders by Deloitte found 98 per cent of CFOs expect flexible and home
working to increase, they anticipate a five-fold increase in home working relative to pre-pandemic
levels by 2025. Other research by Deloitte found that 7.5m workers in the UK are hoping to do their jobs
from home permanently, double the estimated number pre-lockdown.
7
2.8 Although this is clearly an emerging area of research, the CIPD published ‘Preliminary
recommendations arising from enforced homeworking during the COVID-19 lockdown’
8
. It stated
“homeworking is here to stay” and it encourages employers to reflect worker’s preferences and “design
your working practices to suit all locations”.
2.9 The BBC Future Forum Research (October 2020) surveyed 4,700 workers and found that the vast
majority would be unhappy to go back to their pre-pandemic style of working. The results found that
only 12% would want to return to the office full time and 72% want a mix between office and home
working going forward
9
. Even prior to the pandemic, 73% of the UK workforce consider flexible working
to be the ‘new normal’ according to the International Workplace Group’s Global workplace survey
10
.
2.10 Results from YouGov survey (September 2020) also indicate that many employees want to continue
working from home once the pandemic is over. “Most (57%) of those who were working before the
outbreak and who intend to stay part of the workforce say they want to be able to continue working from
home”. In addition, YouGov noted that two in five employees currently live in urban areas but if they
could work more flexibly then 41% of city dwellers would be willing to move out to more rural locations.
2.11 As firms and employees consider the prospects of work-life balance post-pandemic, the prospect of a
mixed approach appears to be increasingly prominent, as observed in the Guardian article
11
:
“For the majority of large corporates, the future is hybrid. Some of the UK’s largest office occupiers,
from the big four accountancy firms to major tech firms, all intend to allow more flexible working after
the pandemic, with staff splitting their time between their desk and a remote location.
Working from home is increasingly being demanded as a permanent arrangement by staff, especially
younger workers. But company bosses are also aware of the bank bosses’ argument: the benefits of
bringing teams together in a communal workplace to foster collaboration and corporate culture, while
also helping to train younger employees and new starters, who may not have the luxury of a dedicated
workspace at home.”
2.12 The trend identified above is also part of the public sector, with the Guardian
12
reporting that a number
of central and local government organisations are set to move to a permanent shift to home working,
including – as reported by the Telegraph
13
- HM Treasury:
7
Deloitte (2021) “7.5 million UK workers hoping to work from home permanently once lockdown restrictions have lifted” 19th April 2021
8
CIPD (2020) “Working from home: assessing the research evidence”. Available here
9
BBC (2020) “Coronavirus: How the world of work may change forever”. Available here
10
International Workplace Group (2019) “The IWG Global Workspace Survey Welcome to Generation Flex – the employee power shift”. Available here
11
Guardian (2021) “Office, hybrid or home? Businesses ponder future of work” 18th June 2021. Available here
12
Guardian (2021) “UK government could make working from home ‘default’ option” 17th June 2021. Available here
13
Telegraph (2021) “Treasury civil servants told they can work from home forever” 1st September 2021. Available here
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
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3.0
RESULT OF SURVEY
3.1 Barratt commissioned market research company Savanta to survey a representative sample of 763
potential or recent home buyers to understand how customers’ preferences have changed due to
working from home more during the pandemic. The aim of this is to understand in more detail, how
people are using their homes differently in 2021, and crucially what they are looking for when buying
their next home, in the new context of balancing the needs of working and living at home. The survey
took place in February 2021.
3.2 The survey findings can be grouped under three broad conclusions:
1 A higher proportion of home buyers are working from home than ever before
2 Home environment and age influences the experience of working from home, and how
respondents use their home.
3 Most home buyers expect to work from home more in the future. Half are not satisfied their
existing home completely meets their requirements, and this will influence their choice of
layout and size of home when buying their next home.
3.3 In simple terms, the pandemic has fundamentally changed how people use their homes, with
implications for how local authorities plan for new homes through the content and application of local
housing mix policies.
A higher proportion of home buyers are working from home
than ever before, and most want to continue.
3.4 The survey confirms that more people are working from home than ever before and that, of likely home
buyers, three in four want to work from home in the future.
3.5 Just 52% of those working from home found their current home to be well designed for this purpose. In
their current homes, 50% of respondents have either made changes to a bedroom or are planning to do
so in the near future, to use as a bedroom-office.
3.6 Of those currently working from home 72% of respondents worked in space in their home that is
otherwise used for different reasons. Most frequently, this was the living room followed by working in
one’s bedroom. 28% had a specific study/home office.
Home environment and age influences the experience of
working from home, and how respondents use their home.
3.7 The research suggests that the experience of working from home is strongly influenced by people’s age
and home set up.
3.8 For the 18-34 year olds surveyed, most want a hybrid mix of ways of working – at home and at a
workplace office – reflecting a differing experience of working from home from their older counterparts,
where the proportions were lower. Indeed, almost half of those aged 55+ said they wanted to work from
home as much as possible (for 18-34 year olds, just over a quarter held that view).
Figure 3.1: Where in your home do you work from?
Guest/Spare bedroom
Dining room
Other communal space
Kitchen
Some-
where
outside
the main
property
Bedroom
Study/homeLiving room
0%
10%
20%
30%
40%
50%
18-34 35-54
55+
I want to work from home as much as possible
I want to work from home more than I did pre-Covid,
but also sometimes in the office in the way I used to (eg. in an office)
In the future, I want to work from home less than I currently do now
I don't want to work from home at all in the future
Figure 3.2: Assuming you could have the choice in the future, which of the following statements best applies to you?
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
7 8
3.9 Overall, working from home was enjoyed by 78% of respondents. The main two attractions being
increased flexibility (74%) and saving money (73%). 60% of overall respondents also agreed that
working from home afforded them a better quality of life, but this dropped to just 48% of 18-34 year olds
compared with 68% of those aged over 35.
3.10 The survey suggests both home environment and age matters to the experience of working from home,
and how respondents use their home. This appears be, at least in part, the result of their differing
home situation, as well as other factors such as, lifestyle, career stage and earnings.
3.11 Asked whether there is enough space to work from home, age was an important factor. 49% of
respondents overall felt there is not enough space or a good area in their home to work. But the figure
was 54% of 18-34 year olds and 35-54 year olds, with just 27% of older respondents (over 55) expressing
dissatisfaction over the amount of space available; this age group are more likely to own larger houses.
3.12 Accordingly, of those working from home, it is more likely that younger people aged 18-34 (who, overall
are less keen to work from home) are regularly working in their own bedrooms (34%) compared to
other age groups (22% of 35-54 year olds and 16% of those aged 55 and over).
3.13 Of those that worked in bedrooms, slightly more (60%) found working from home made it more difficult
to separate home and work life (55% overall).
3.14 Seemingly in keeping with these conditions in which they have worked from home, it is also the younger
cohort who report that working from home has put a strain on them. 52% of 18-34 year olds and 47%
of 35-54 year olds reported a negative impact on their mental health, but just 20% of over 55s. This
appears to show that more space might equate with better mental health in a post-pandemic working
living experience, and reinforces broader anecdotal findings
19
.
49% 54% 54% 27%
45% 48% 51% 27%
Figure 3.3: Do you feel your home has sufficient space from which to work? (% agree)
There isn't sufficient space to WFH where I live,
eg. not enough bedrooms
There isn't an area in my home that is well suited to WFH
Total in market
18-34 35-54 55+
0%
5%
10%
15%
20%
25%
30%
35%
18-34 35-54
55+
My bedroom
Kitchen
A guest or spare bedroom
Other communal space
Somewhere else
(please specify)
Living room
Study/home office
Dining room
Somewhere outside
the main property
(like an outhouse,
garage or shed)
Figure 3.4: Whereabouts in your property do/ did you work from?
0%
20%
40%
60%
80%
100%
18-34 35-54
55+
Figure 3.5: Working from home has had a negative impact on my mental health
Strongly agree
Agree
Disagree
Strongly disagree
Neither agree nor disagree
Don't know
NET: Agree NET: Disagree NET: Don't know/
No strong opinions
19
For example, Guardian (2018) “How shrinking homes are affecting our health and happiness” Available here. It should be noted this article cites a 76m
2
figure for the average size of dwellings in the UK that has been shown to be out-of-date, being based on a research study from 2005 using data going back to
1980. More recent figures using EPC certificates (Q3 2019) show the average size of new homes is 90m
2
, larger than the average of 83m
2
for existing domestic
properties.
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
9 10
Most home buyers expect to work from home more in the
future. Half are not satisfied their existing home completely
meets their requirements, and this will influence their choice
of layout and size of home when buying their next home.
3.15 These results reflect the literature review. Employees are increasingly demanding at least some time
working from home and many organisations are responding positively to that desire, at least for some
of the working week.
3.16 However, only half of all workers believe their home is well suited to working from home (Figure 3.6).
Others were of the view that that there was not sufficient space to work from home where they live
(49%) or that there was not an area in their home well suited to working (45%). Of those buying a home
and working from home, 7 out of 10 said they now realised the importance of a separate room to work
from, and the importance of the layout of their property. A similar proportion would prefer an additional
room in their home to work from and recognise that as a being of importance.
3.17 The survey asked people about how working from home might influence their consideration of future
home purchase. Two thirds of respondents (consistent across the age groups) said they would take
working from home into consideration when making their next home move (see Figure 3.7). And a
similar number found homes marketed as “working from home friendly” an attractive proposition.
Residential priorities and preferences for many have fundamentally changed in the space of 18 months,
as the trade-off between time spent commuting, and time spent at home has shifted seemingly for the
long term.
Figure 3.6: Home working opinions and attitudes of those who have worked from home: % agree
Would rather have a dedicated office space than a downstairs toilet
WFH makes me rethink about the use of the rooms in my property
Would rather have a dedicated office space than an extra bedroom
69%
69%
71%
63%
65%
67%
There isn't an area in my home that is well suited to WFH
My home is well designed for WFH
There isn't sufficiant space to WFH where I live, eg. not enough bedrooms
52%
56%
62%
45%
49%
Would prefer an additional room in my home so I could have a dedicated office space
WFH makes me realise the importance of a separate room to work from
Harder to WFH in a communal area than in a dedicated space
WFH makes me think about the importance of the layout of my property
New homes should be built and designed with WFH in mind
Not very appealing
Not sure
Quite appealing
Very appealing
23%
47%
21%
8%
1-2
3-4 5-6 7-8 9-10
21%
45%
25%
5%
3%
Importance (10 highest)
Figure 3.7: How important is a home in which you can work from (those in market)?
Appeal of a home marketed as
“working from home friendly”
Importance of
“working from home friendly”
qualities for future home purchase
Would prefer an additional room
in my home so I could have
a dedicated office space
Would rather have a
dedicated office space
than an extra bedroom
Would rather have a
dedicated office space than
a downstairs toilet
69% 62% 56%
Figure 3.8: Home working opinions and attitudes (those in market that have been working from home): % agree
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
11 12
4.0
CONCLUSIONS AND
IMPLICATIONS
4.1 This research report shines a light on how the quality of experience of working from home is related
to the dwelling within which people live. It has immediate implications for the way in which policies in
local plans seek to influence the size and types of homes provided in new developments.
Working from home is here to stay
4.2 A change compelled by the pandemic in 2020, working from home is now here to stay, with many
businesses and employers in key economic sectors moving to a wholly or hybrid approach to remote
working. Many workers who might previously have worked from home only on an occasional basis, will
now do so regularly, with their employers facilitating this shift.
People’s satisfaction with this way of working is influenced by
size and quality of their homes, with younger households in
smaller accommodation having a less positive experience
4.3 For many, working from home is popular – our survey shows a sizeable majority have enjoyed the
experience – but there is less satisfaction for younger households (who are most likely to have worked
from home during the pandemic) and only half of all households believe their home is well suited for
working from home, with many seeking a dedicated space from which to work.
4.4 The younger households with a less positive experience of working from home were also the group with
smaller homes, and many of those less satisfied cited the toll on their physical and mental health.
Working from home has led to a fundamental shift in
what people want from their homes. The majority of home
purchasers now demand more space
4.5 The change in working patterns has caused many people to revaluate the space requirements in their
homes. A dedicated space and being ‘work from home friendly’ is regarded as appealing for seven in
ten home purchasers.
4.6 Ordinarily, one would expect home builders to respond to this clear market trend by adapting the size
and configuration of the houses they build. However, this first needs a planning policy response.
3.18 When considering the specifics, people working from home perhaps unsurprisingly were keen on
having more space to work from (Figure 3.8). Interestingly, this was also the case when a ‘cost’ was
introduced, when asked whether they would rather have dedicated office space to an extra bedroom,
62% said yes.
Summary
3.19 It is clear that, for many home buyers, working from home more, or entirely, has become the new
normal. Changes that were expected by commentators to take a decade have happened almost
overnight and are now here to stay for many home buyers and recognised as a feature of working life
for many employers.
3.20 As a result, what people need from their homes has changed. Their home working space affects their
mental health, their job and well being, and their satisfaction with where they live. What prospective
buyers, and especially young people are looking for from their next home has fundamentally changed -
flexible space to work from is now a priority. Bedrooms can no longer be assumed to be used solely for
sleeping, instead they are now likely to serve at least for a proportion of time as a dedicated workspace.
Accordingly the space required and used by home owners has changed.
3.21 Local housing policies exist to support the needs and demands of new and existing residents. These
needs have changed and the planning system needs to respond. In particular planning policies
underpinned by outdated perceptions of how people use their homes need to be changed to reflect a
new demand.
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A key purpose of the planning system is to meet housing needs,
and those needs have clearly changed.
4.7 In England, Local Planning Authorities (LPAs) are required by the NPPF to set local policies on housing
mix and to provide a range of type and size of housing based on up to date evidence. In many areas,
that evidence will be pre-pandemic and based on statistical correlations between household size and
dwelling size that do not take account of the changing way in which many households will expect to
occupy their homes (See below box).
4.8 Even before the shift to working from home, the current planning policy approach to setting housing
mix using SHMAs was often problematic, notably because:
1 Although the net increase in households is often single persons, these are often older persons,
many of whom already tend to occupy family homes and are typically very satisfied with their
accommodation and less likely to move to a smaller property even when supplied
24
;
2 The number of individuals in a household (and, by inference, the size of home they ‘need’) often
bears little resemblance to the number of bedrooms in the homes they occupy. Instead, people
typically choose homes based on affordability, living in homes and locations they can afford. This
can lead to a mix of overcrowding for those in less affordable areas, alongside ‘under-occupation’
– i.e. those who can afford it having more rooms than number of people in a household. In fact,
three-quarters of all households in market housing nationally have at least one spare bedroom
(and more than half of these have two or more
25
).
4.9 The shift to home working breaks the already tenuous logical connection underpinning many local
housing mix policies. Two thirds of those seeking homes will now demand an extra room – typically
a bedroom - in their accommodation to act as a dedicated workspace. Many of those who might
previously have had their needs met through a two or three bedroom home now seek a three or
four bedroom property (with at least one room being used as a study). As the research in this report
suggests – this is likely to be especially true for 18-34 year olds, more likely to be ‘first time buyers’ or
those seeking an extra bedroom following the arrival of children.
How local planning policies
influence the size and mix
of homes
Since the introduction of the first NPPF in 2012
it has been down to local authorities to set out
policies prescribing the different types and sizes
of housing they consider to be needed, based on
Strategic Housing Market Assessments (SHMAs).
Such policies typically specify that developments
should comprise a particular mix of homes,
based on the number of bedrooms they contain,
and sometimes whether they are houses or
flats. The mix specified includes both market
and affordable homes. Some local areas then
apply the nationally described space standard
for gross internal floor areas, the requirements
of which are set by the number of bedrooms and
bedspaces. Policies are typically included in local
plans, but also in other local policy documents
including frameworks, supplementary planning
documents and published guidance.
Often the SHMAs used as evidence draw upon
demographic trends to identify an ageing
society and the trend towards a net increase in
smaller households, and then apply an assumed
relationship between the number of people in
the household and the number of bedrooms
they might require. This can lead to policies
that require that new supply should provide
proportionately more smaller one and two-bed
homes rather than larger family accommodation.
Once a housing mix policy is set in a local plan, it
forms part of the statutory development plan, and
planning applications are expected to comply with
its provisions.
In these circumstances, proposals for housing
will be expected to provide more smaller homes,
even when the local demand – taking into account
the new demand for home-working spaces
– is for larger homes with an extra bedroom.
Applications not complying with the mix specified
in the policy face greater risk of delay or even
refusal.
24
The English Housing Survey report, “Housing across the life course, 2018-19” found that “Those aged 16 to 34 were more likely to have moved in the last
year than those aged 35 to 64 and those aged 65 and over. One million households with a HRP aged 16 to 34 moved in the past year, this accounts for 26% of
those aged 16 to 34 compared to 7% of those aged 35 to 64 and 2% of those 65 and over”. Report available here
25
The 2011 Census showed that 39% of all households in the owned and private rented sectors in England had a bedroom occupancy rating of +2 or more and
a further 36% had a rating of +1, indicating under-occupancy based on the bedroom standard (Source: DC4105EWla).
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL? WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
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Policies in local plans require urgent review to support
provision of the larger homes demanded by those working
from home
4.10 Local policies that seek to control the size and mix homes need to be re-evaluated and an overall
change in the planning response will be required:
1 Local Planning Authorities (LPAs) reviewing their local plans
26
should take into account that
existing housing mix policies will be based on evidence that pre-dates the pandemic and thus
is unlikely to reflect the changing way in which people will now occupy their homes. This shift
makes it more likely that the LPA’s review should conclude that the local plan must be updated to
revise policies on housing mix, including to support provision of homes that are suited to working
from home.
2 Pending the updating of local plans (a process that will take several years), LPAs determining
residential planning applications must be flexible in their interpretation of current out-of-date
housing mix policies (including those in local plans as well as other planning policy documents)
where they are based on evidence that does not take into account the recent shift to working from
home. They should support housing mixes and dwelling types that are ‘work from home friendly’
and which provide the choice of a dedicated space for working (in the form of an extra bedroom or
office space) that our survey shows is important to workers;
3 The preparation of policies (and development management decisions on residential applications)
must take into account the obvious benefits to the well-being of households and the benefits to
their local economies of allowing for extra bedrooms in new homes – to provide good quality home
working environment.
4.11 Providing homes that meet this need will be an important tool for local areas seeking to retain and
attract newly forming households and young families. Such an approach is a fundamental part of the
matrix for achieving sustainable development, as described by the NPPF para 8
27
. This is in the context
that the supply of existing family homes to the market is inelastic
28
, with many larger, family homes are
occupied by older households with little incentive or inclination to downsize.
4.12 Without an urgent review of housing mix policies, the existing mismatch between the supply and
demand of homes will become even more acute, making family homes – with a dedicated space for
home working - even less affordable for those who most need them with consequential harm to the
well-being of the country’s working population.
26
As required in England by Regulation 10A of the Town and Country (Local Planning) (England) Regulations 2012. A review is carried out by LPAs and involves
it assessing whether an existing plan needs updating.
27
NPPF para 8 states that achieving sustainable development includes a social objective which it defines as being “to support strong, vibrant and healthy
communities, by ensuring that a sufficient number and range of homes can be provided to meet the needs of present and future generations; and by
fostering well-designed, beautiful and safe places, with accessible services and open spaces that reflect current and future needs and support communities’
health, social and cultural well-being.”
28
This is Money (2021) “Shortage of three and four-bedroom homes: Number for sale falls to a five-year low as buyers rush to snap up properties with more
space” available here
WORKING FROM HOME: PLANNING FOR THE NEW NORMAL?
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