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Responses from Industry
Federation of Master Builders ( FMB ) Brian Berry , Chief Executive of the FMB , said :
“ I ’ m pleased that the White Paper recognises the potential for SMEs to deliver far more homes than they do currently . In addition , it accurately identifies the key barriers to them doing so as land , planning and finance . Of these , finding small sites and then getting planning permission is the greatest single barrier . In too many places , the approach to planning for new homes has come to be focused almost entirely on large sites and large scale delivery . This approach has slowed down the delivery of homes , and has helped shape an uncompetitive house building industry and an unresponsive supply of housing – this has to end .
“ There is much that is good and sensible in the White Paper so let ’ s use it as a launch pad for a real step change in delivery . It is in everyone ’ s interest to see SMEs play a far greater role in house building and small sites are key to this .”
Confederation of British Industry ( CBI ) Rhian Kelly , CBI Infrastructure Director , said :
“ A quiet revolution is needed to shake up how business and the government deliver the UK ’ s housing needs , so this White Paper is a welcome step in the right direction .
“ The intention to deliver a diverse mix of homes – especially affordable homes to rent – is particularly good news . We have called for the “ one size fits all ” approach to housing to be ditched , and are glad to see a move to building the right homes in the right places that fit the actual needs of people and communities .
“ It ’ s encouraging the government is looking at how to make it easier for small and medium-sized businesses to succeed in the market . Taking a clearer , more strategic approach to public land release will also see more bricks being laid , so we welcome the government turning its eye to this developing area .”
London Central Portfolio ( LCP ) Naomi Heaton , CEO of London Central Portfolio , comments on the Government ’ s Housing White Paper :
“ Sajid Javid ’ s lacklustre announcement , and accompanying 104- page document , was an underwhelming response . Reiterating the grave problems facing the housing market , about which we are all too familiar , there was a distinct absence of any detailed implementation program .
Having lobbied the government on the inadequate supply of rental property , which became a scapegoat under George Osborne ’ s tenure , LCP welcomed the sentiment to assist families within the Private Rented Sector as well as those wishing to buy their own homes . At last the government has woken up to the fact that not everyone aspires to homeownership , with an increasingly mobile workforce and a generational change in lifestyle .
For the first time , the government announced a relaxing of restrictions in their Affordable Homes Programme to include affordable rental property . They also , once again , propose to consult on longer tenancies on new build rental homes .
However , very little detail was included as to how these policies will be executed or enforced . These announcements simply do not go far enough to tackle the growing lack of PRS supply with a 1.8m shortfall anticipated by 2025 , according to RICS . More information on the ban on letting agent ’ s fees was also absent , which now is to be subject to consultation . For developers , with an announcement of an increase up to 40 % in planning fees , the commercial nature of the industry is once again being overlooked , as is their crucial role in providing affordable housing . This is particularly worrying at a time when anecdotal evidence suggests a rapid slowing of building starts as buyer demand falls for more expensive homes due to the high levels of graduated Stamp Duty and the introduction of the Additional Rate . Whilst further investment into planning departments is welcome , developers also require support if they are to help deliver on government building objectives .
With only 163,940 housing completions in England in
2015-16 , the government is a long way off the target of providing 1m new homes by 2020 , promised by David Cameron . Not only do we have a housing crisis to meet right now , there is projected to be an additional 1.8m new households created by the end of this Parliament . Currently , the Government is not even standing still .
On the whole , the muchhyped Housing White paper appears to do very little to ‘ fix our broken housing market ’.”
PREDICTIONS FOR THE FUTURE
From the RICS Residential Market Survey , January 2017 : UK house sales still lacking momentum
• Prices and rents continue to rise with shortage of stock a key factor
• Buy-to-let investment anticipated to decline given current policy landscape
‘ Over the next five years , national rental projections point to a cumulative increase of just over 25 %, outpacing house price inflation over this time period ( respondents anticipate prices will rise a little under 20 % on the same basis ).
Sales are however predicted to improve in the near term with 8 % more respondents expecting a rise rather than fall over the next three months nationally . Respondents also remain positive over the year to come with a net balance of + 36 % predicting that sales will increase .
Prices are expected to continue to rise over both the next three and twelve months across the UK in all regions except Central London .’
Sources : “ Housing White Paper - GOV . UK ”. Gov . uk . N . p ., 2017 . Web . 21 Feb . 2017 .
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