New home build target must increase by 50%

The UK government has been warned that it must increase its home building target by 50% to 300,000 new homes each year if it’s going to solve the countries housing target.

Quality

Richard Carr Build more New homes

The UK needs to build more homes

Poole-based property developer Richard Carr is worried that the strain on home builders to increase their output could negatively affect the quality of homes.

According to a report published by the House of Lords Economic Affairs Committee, local authorities and housing associations should be freed by the government to build substantial numbers of homes for rent and sale.

The report has warned the government that if they fail to meet the 300,000 target then they will fail to meet the demands or moderate the rate of current house price increase.

Furthermore, the report criticises the government’s current policy which restricts local authorities’ access to funding to build more social housing by frequent changes to tax rules and subsidies for house purchase.

Planning fees

A further recommendation from the report suggests that increase planning fees will help local authorities create a more efficient planning system.

“We are facing an acute housing crisis with home ownership, and increasingly renting, being simply unaffordable for a great many people. The only way to address this is to increase supply. The country needs to build 300,000 homes a year for the foreseeable future, said Lord Hollick, Chairman of the Committee.

“The private sector alone cannot deliver that. It has neither the ability nor motivation to do so. We need local government and housing associations to get back into the business of building.”

Home ownership

Lord Hollick also questioned the government’s desire to get everyone onto the property ladder and argued that it will never be achievable for many people and in some areas is out of reach even for those on average incomes.

“If the housing crisis is to be tackled the Government must allow local authorities to borrow to build and accelerate building on surplus public land,” he concluded.