An Open Letter to Steve Reed, Housing Secretary

Dear Steve Reed,

As a major manufacturer in the housebuilding supply chain, it’s good to read that you’re going to pull every lever to make sure the UK can “Build baby build”.

We’re very happy to learn that you’re planning to “move on to the next stage in unleashing one of the biggest eras of building in our country’s history”. We’re ready.

But while you’re talking to developers about planning reforms and the 1.4m houses for which planning has been granted and which have not yet been built, and while you’re “smashing through the barriers”, please remember to talk to your colleague Rachel Reeves in the Treasury.

Remember that no builder who values their existential cashflow will build homes when no-one has the confidence to buy them.

You can pull all the levers you want on planning and environmental (and other) regulations. But if (having delayed the budget to the end of November thereby creating maximum uncertainty) the Chancellor doesn’t stop floating policies that threaten to further tax owners of houses worth more than £500,000 further and remove CGT relief on primary residences, no-one is going to upsize or downsize, or indeed move at all.

And with a sharp rise in layoffs and hiring cutbacks as companies brace for more tax rises leading to the fastest surge in jobseeker numbers for 5 years, confidence in the housing market is closing on an all time low – if you don’t feel safe in your job, you’re unlikely to commit to buying a new home. Especially with no first time buyer support programme in place.

We wish you every success in your mission to “Build baby build”. We really do. Just make sure your cabinet colleagues are on board with what needs to be done to make it worthwhile for housebuilders to build houses.

James Scott
MD