Has the government started to turn around the housing market?

In another rather bold claim, the government announced that it has turned around the housing market making the dream of homeownership a reality, writes Richard Carr.

Home owners on the rise

Richard Carr New Build Homes

Has the government turned around the housing market?

Housing Minister Brandon Lewis’ claims are substantiated by the latest figures which show more than a decade-long decline in the number of people owning their home has been turned around with more than 14 million owner occupiers on the UK in 2013.

“Hard-working families across the country are getting the chance to realise their dream of homeownership,” said Lewis.

“In 2010 there was a housing market where buyers couldn’t buy, builders couldn’t build and lenders couldn’t lend.

“Our efforts are turning that around with more than 270,000 families helped into homeownership through government-backed schemes since 2010, while the number of new homes is up 25% over the last year.”

Plateau

Despite seeing a rise during recent years, 2014-15 saw the number of people owning their own home remain static. The government will no doubt be hoping that their Help to Buy initiative helps to reinvigorate the market with just 46,000 people using the scheme to purchase a home since 2012.

Furthermore, the government has committed £20billion towards house building across the next five years as they attempt to be building 200,000 homes a year by 2020.

Impossibility

With the government using the report to praise their impact on the housing market, Shelter’s chief executive has blasted the findings.

“These figures are a stark reminder that for millions of families and young people it’s becoming utterly impossible to create a stable future in a place they can really call home,” said Campbell Robb.

“Instead of being able to put down roots, more and more people are stuck spending vast amounts of their income on rent, while house prices continue to rocket out of reach.”

Richard Carr shares some of Robb’s feelings and still is mystified at the government’s approach in taking CIL (Land Development Tax) from developers that increases the cost of housing and then causes the need to create schemes like “Help to Buy” it’s a bit like the government playing Robin Hood but it is a not joined up plan!