Is Architecture viable in 2017 ?
This essay examines the viability of Architecture in 2017.
It follows an earlier analysis of the profession in 2013.
Source: https://sites.google.com/site/architecturearticles/home/article-013---is-architecture-viable-in-2013
The essay first establishes and cross references a set of data and then draws conclusions.
Data
UK Population = 64,100,000
Source: 2013 World Bank
UK Working Population = 31,420,000
Source:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/february2016
Total Number of UK Architects 2014 = 35,157
Source: http://www.bdonline.co.uk/number-of-registered-architects-hits-record-high/5076815.article
Number of households in UK
England = 22,100,000
Scotland = 2,400,000
Wales = 1,300,000
Northern Ireland. = 700,000
Total number of households = 26,500,000
Source:https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bulletins/populationandhouseholdestimatesfortheunitedkingdom/2011-03-21
Number of people per household in UK
The number of people living in households in the UK on census day was 62.1 million. The average household size in the UK was 2.3 people per household, compared to 2.4 in 2001
With an increased population of 64,100,000 living in 26,500,000 households this allows for 2.4 people per household as an average. In 2017.
Source:https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bulletins/populationandhouseholdestimatesfortheunitedkingdom/2011-03-21
Number of times people move House.
‘On average, people typically move three more times before they are 45.’
Source: http://www.independent.co.uk/property/how-often-do-people-move-house-8969393.html
UK Average Wage 2017 = £27,600
Source: https://www.incometaxcalculator.org.uk/average_salary.php
= £530.76 / wk
UK Average Spending 2014- 2017 = £531.30 / wk
= £27,628 / year
Source: http://www.bbc.co.uk/news/uk-england-35038184
UK House Price
Average UK house price = £216,750
Source: https://www.gov.uk/government/news/uk-house-price-index-hpi-for-july-2016
Construction Time
Duration for construction of a House = 2 years
New Build Completions in England 2016. = 141,690 houses
Source:https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/572013/House_Building_Release_September_Qtr_2016.pdf
Architects Fees
Full Service - 8% - 12% of total construction cost
(at tender stage) for £216,750 house = £17,340 - £26,010
Taken for approx. 2 years work = £8,670 - £13,005 / year
= £167 - £250 / wk
For Statutory Approval Stage only - 3% - 5% of total
construction cost at estimation stage; which will be less
than final construction cost. For £216,750 = £6,502 - £10,838
for approx. 1 years work = £125 - £208 / wk
Conclusions
There is 1 architect per 1823 population in the UK.
If the Architect was able to contact all of these people and they each needed a house to be designed for each of them then the total amount of value of work could be considered to be 1823 people times the value of a single house; £250,000; Approx. £455,750,000 total value.
This is however a very unlikely scenario.
If only the working; and so money earning; population is considered there is 1 architect per 894 working population in the UK and so the total value of potential work would be £223,500,000.
This is however still a less likely scenario.
Since a house is not needed every year but 3 times in 45 years on average then a house would need to be designed only every 15 years.
This is however still a less likely and financially productive scenario.
Allowing for the completion of new build house projects in England of 141,690 houses per year in 2016 the work level per architect could still be 141,690 houses designed by 35,157 architects.
This would allow 4 houses per year; in England; for all current Architects to earn a living wage from. Allowing a full service this would allow each Architect to obtain the fee salary of 4 x £13,005, £52,020 per year.£1000 per week.
This is however less likely since the houses are mass produced, private sector, house builder standard designs, not unique houses for each client. Each house would also have to be completed as a design in 3 months to allow any profit to be contained within a single year.
To achieve the UK Average Wage level of 2017 Architects would need to work on at least 2 houses per year.
If only one house is designed per year then on both fee scales an Architect can expect to be approx. £323 to £406 below the average take home pay level per week income.
The UK is spending more on average per year than its average income per household per year.
There is no spare income in a UK household.
The only way to finance any architecture or construction work is therefore by a bank loan.
Bank loans are not currently as easily available or sufficient to cover the cost of a single house project.
Architecture is therefore still a very precarious profession in 2017 given the rate of house building, the domination of the house building sector by the mass house builders, the level of work needed to achieve a minimum wage, the low spending ability of the population, the low bank loan availability, the reduced size of bank loans and the fee level available per architect.
Ian K Whittaker
Email: iankwhittaker@gmail.com
14/10/2020
786 words over 3 pages