Karli Edmondson
Posted: Monday, August 9, 2010 4:29 pm

Extra money from the Government for Councils in England to build new homes is a welcome boost and now it is up to local authorities to deliver the housing needed to tackle the UK’s chronic housing shortage, says the Federation of Master Builders. 

Responding to today’s announcement that the Government will match the council tax raised on each new house for six years, Brian Berry, Director of External Affairs at the FMB said: “It is very encouraging that the Government intends to take swift action to tackle the housing shortage head on. With house building at its lowest level since 1924 and over 4.5 million people on  council house waiting lists we have a serious and growing housing crisis in this country which needs addressing. If the New Homes Bonus scheme succeeds in encouraging councils to build in the kinds of numbers that we need to keep up with ever growing demand then it will be a massive achievement.” 

However, Berry warned:“The danger will be that some councils will not be attracted by the extra money because of local opposition to new homes being built in their locality. The problem is that everyone is agreed that more housing is needed but many are resistant to having these homes near them. Somehow we need to ensure that all councils are persuaded of the merits of building new homes, and that they subsequently provide a sufficient supply of land to enable the house building sector to deliver for the future needs of the local communities they serve. We have seen time and time again that communities that do not provide housing which is accessible to the young see them move away and when they go they take the futures of local businesses and services with them.”  

Berry concluded: “A supply of affordable homes is essential to both economic recovery and social cohesion as it allows the young to buy a stake in the community where they were born and provides the justification for keeping local services and local businesses which generate employment open for all to use.”

Adam Challis, Head of Research at Hamptons International, has commented: “Hamptons International welcomes Government proposals that will incentivise Local Authorities to build new houses. The new Homes Bonus would be equal to six years of council tax for each new home and should encourage Local Authorities to be more open-minded about new development proposals.” 

“The cost of providing services to new households can be a deterrent to cash-strapped Local Authorities. These proposals begin to re-align this cost burden with the benefits of new housing supply for the rest of society.”  

“The current level of housebuilding is woefully inadequate to meet the demand. Many areas of the country, notably in the South, are simply storing up affordability problems for the future.”