The Home Builders Federation (HBF) has said that measures announced by Secretary of State Sajid Javid to increase house building are a welcome reaffirmation of the new government’s commitment to housing delivery – and also demonstrate that the government is listening to industry concerns.
HBF says that the house building industry has already told the government that the measures needed are moves to speed up the planning process, bring more land forward more quickly – and assist small developers.
The measures should also build on the increases of recent years, says HBF.
Output has already been increased significantly, with the number of new build completions increasing by around one-third in just two years, following five years of general decline.
In 2014-2015, there was a 19% year-on-year increase in the number of new build completions recorded in England – however, more is needed, particularly to help smaller builders play a part, says HBF.
The number of SME builders has collapsed over the course of a generation, due to the complexities and cost of the planning and regulatory systems and a lack of available finance.
The House Building Fund and proposed improvements to the planning system that would in particular assist smaller builders are welcome steps that should help stimulate a section of the industry that has been frustrated and constrained, says HBF.
Additional planning constraints and an influx of regulation has resulted in there being very few new entrants to the UK house building industry for decades – moves to “de-risk” the system could help encourage new entrants build homes, while also assisting existing builders increase their own supply still further.
Executive chairman of the Home Builders Federation, Stewart Baseley, said:
“Even after the huge increases in housing supply over the past few years, we are some way short of building the number of homes the country needs.
“House builders are still stifled by planning delays that prevent them getting on sites and delivering homes more quickly.
“Efforts to address this – and remove some of the many barriers that new entrants face when trying make it into the industry and build new homes – will undoubtedly help to boost housing output.
“Most of the big increases in supply in recent years have been driven by the largest house builders, who have significantly boosted investment in land and skills.
“If we are to get to the level of supply required, we need to see more players on the pitch – we need to enable small builders to play more of a part, as well as facilitating more of a contribution from other sources.”
Duncan Lewis Housing Solicitors
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