According to theweek.co.uk, David Cameron is set go it alone in his bid to meet the government’s affordable housing target after losing patience with housebuilders, writes property specialist Richard Carr.
Going it alone
The reports claim that David Cameron is set to announce that the government will “directly” build up to 13,000 new affordable homes on public land. The PM is expected to unveil these “radical” plans in the next few days, which he claims (rather ambitiously) will match Margaret Thatcher and Michael Hesltine’s regeneration of London’s Docklands in the 1980s in significance.
On top of the 13,000 homes, David Cameron has put aside £1.2bn to build 30,000 affordable starter homes on underused brownfield land by 2021. These will be specifically for first time buyers under 40 for at least a 20% discount.
Cameron hopes to address the current undersupply of new homes by going alone in his battle against the country’s crippling housing crisis. As a result, house prices continue to increase across the majority of the UK with the average valuation going up by 6% last year, with a similar rise predicted in 2016.
The prime minister says the government is “rolling its sleeves up” and “getting homes built”, adding: “Nothing is more important to achieving than ensuring hard-working people can buy affordable homes.”
Some might laud Cameron for his actions, taking the fight into his own hands so to speak, however shadow housing minister John Healey said he was “laying on the rhetoric to hide his failure on new homes”.
Richard Carr backs Healey’s comments saying that the government hasn’t got a clue what is happening in the market place.
Firstly it is taking longer and longer to get planning for even a small application, there is a skills shortage which is creating wage inflation in the Industry and that is increasing prices of property, which then in turn causes the government to have to subsidise property for first time buyers!
Simply penalise LPAs heavily for not delivering schemes on time and even more heavily if they are then won at appeal, next get rid of CIL and all S106 payments for 24 months to create a boom in applications.