Housebuilders need clarity on labour and funding constraints to deliver mandatory targets

Today the Deputy Prime Minister and Housing Secretary Angela Rayner addressed MPs on the government’s planned revival of mandatory housing targets and use of grey belt and green belt land to build 1.5million new homes. 

As part of Labour’s plans to get Britain building, the Deputy Prime Minister announced government’s focus on local housing targets for the first time, affordable and social housing, planning reform, and changes to the Right to Buy scheme. 

Kelly Boorman, national head of construction at RSM UK, comments: “The government’s announcement today outlined its commitment to build 370,000 new homes as part of new local, mandatory housing targets, with house prices to be considered in conjunction with local incomes. The Deputy Prime Minister acknowledged the role of local authorities, housing associations and industry to deliver housing targets to secure economic growth, create jobs and provide high-quality housing. 

“Government’s focus on building more homes on green belt and grey field land is encouraging, especially as this will be developed as part of wider infrastructure strategy to ensure people have access to education, healthcare and transport services. The Planning and Infrastructure Bill will also require input from developers, giving industry more certainty when committing to projects. The increase in housing supply will help more households wanting to get on the ladder.”

She added: “However, there are still a number of concerns, as government failed to address existing workforce shortages and productivity issues. There needs to be a prioritisation of labour and increasing access finance for the developers to achieve mandatory housing targets. While it seems local authorities will play a key role in decision making, it is not yet apparent where financial responsibilities will lie for housebuilders and government. Industry therefore needs the government’s pending housing strategy to provide clarity on how labour challenges will be addressed, meet funding needs, and incentivise first-time buyers to pursue home ownership.”