For decades we have not been building enough homes, with prices rising to unaffordable levels. At its peak, 350,000 homes were built in 1970. However, since then there was an overall year on year decline down to 75,000 homes in 2009. These numbers have subsequently seen some recovery, rising to 220,000 last year
The Chancellor has stated that the budget tomorrow will set out how the government will build 300,000 new homes a year.
Already, there have been a number of steps taken to help confidence in the market. Councils and housing associations in England have been provided with long term rent certainty from 2020.
The £3 billion ‘Home Building Fund’ already has over half its budget committed and will deliver over 100,000 new homes built across England.
Through the government’s Housing White Paper, unnecessary delays will be tackled – ensuring councils release more land for housing, giving them new powers to ensure that developers actually build homes once they’re given planning permission to do so.
The ‘Help to Buy’ scheme has already helped over 130,000 more families. An additional £10 billion has been committed to the scheme to help a further 135,000 households by 2021.
Unlocking larger scale developments will need Government support for infrastructure. The introduction of the £2.3 billion ‘Housing Infrastructure Fund’ will help with this.
One key question is whether the 300,000 homes target will make inroads into the issue of affordability and market demand. Experts, overall, agree that yes, if this delivery rate is achieved it will help – but is a starting point.
Tomorrow we will see what other measures the Government will put forward to help the development industry.
