Industry rounds on government housing plans

Thursday, 03, Jul 2008 08:43

The housing industry has rounded on government initiatives to spur the housing market, branding them "cosmetic".

Following a torrid day for the construction industry yesterday - with a range of sources reporting historical falls in building - the Department for Communities and Local Government (CLG) announced a range of measures designed to bring stability back to the market.

Key among them was the creation of a "national clearing house" which will allow developers to offer excess social property to the Housing Corporation in order to boost sales.

However, just £200 million has been committed to the scheme - potentially allowing for the purchase of just 1,500 properties.

Increasing flexibility around when providers can bid for funding from the government's £8.4 billion affordable housing programme was also announced.

Moreover, a further £270 million is today being allocated through the Housing Corporation to deliver an additional 3,800 homes for social rent and 1,500 shared ownership homes over the next three years.

Yet the industry has said the steps are "clearly not enough".

"We have been warning government for months now of the implications for the wider economy of not taking steps to address the situation in the housing market and the consequences of a lack of action are now becoming clear," said Stewart Baseley, executive chairman of the Home Builders Federation (HBF).

"The implications for the government's own long term housing targets are also clear, as it is only private house builders that can deliver the much needed housing this country needs, both private and social.

"We will continue to work with government on the further measures they mention in the hope that they will assist in bringing much needed confidence and stability to the market."

The government has committed to building 250,000 homes a year until 2016 to create two million new properties in the UK.

The government's announcements, however, are likely to have little impact, argues the Federation of Master Builders (FMB).

"At a time when house building is at its lowest level since 1945 today's announcement is little more than cosmetic surgery to mask the more fundamental problems about providing the millions of new homes that are needed in this country," said Brian Berry, director of external affairs at the FMB.

"The simple fact is that today's announcement is not about any more additional money as the £270 million had already been allocated."

Chris O'Toole