UK Housebuilding Strategy – why isn’t it working?

Ask Google AI to describe the Government’s housebuilding strategy and you’re told:

“The government’s primary housebuilding strategy aims to deliver 1.5 million new homes in England over the current parliament. This strategy focuses on aggressive planning reform, massive investment in affordable housing, and using designated “grey belt” land and new towns to boost supply”

In 40% of the target timescale, the industry been able to deliver just 20% of that target (309k new homes).

So what’s missing from the strategy?

Could it be reducing the vast additional tax burdens on housebuilders and their supply chains impacting the commercial viability of building houses (disproportionately affecting SME builders BTW)?
Could it be reducing the weight and associated cost of the tsunami of regulatory burdens – with more yet to come with the future heat pump mandate – further impacting site viability?
Could it be the need for of demand support? There’s been no help to get on the housing ladder since Help to Buy closed to new applications at the end of October 2022.
Could it be that the grim state of the economy is inhibiting potential buyers, anxious for their jobs and struggling with the rising cost of living and soaring energy bills?

Our question today is will a Government displaying a distinct command and control economic tendencies ever understand the mechanics of the housing MARKET?

Yes, we bang on about this.

But it matters. It matters to the future prosperity of the country, which could be significantly enhanced by a healthier housebuilding sector*. It matters to the 834,000 people currently employed in the sector and its supply chain. It matters to the 1.5 million people on council housing lists across the UK.

James Scott
MD

* Using the HBF’s updated calculator, building just 1,000 new houses:
– Supports the employment of 3,475 people
– Provides jobs for 42 apprentices, graduates or trainees
– Increase open space, community sport, leisure spending by £900,000
– Generates £45,000,000 towards new affordable housing
– Generates £6,250,000 towards infrastructure including £2,820,230 towards new and improved schools.
– Generates £26,666,670 in tax revenue including £2,012,500 in council tax revenue