Britain’s home builders today responded to the Government’s drive to make housing more affordable.
Executive Chairman of the Home Builder’s Federation, Stewart Baseley said:
“We are pleased the Prime Minister has recognised how important housing is. We have long argued that housing needs to be at the forefront of everyone’s minds and it is excellent news that Gordon Brown has heard our call.
Setting higher targets for housing by 2020 is welcome recognition of the scale of the challenge. The reality is that we need to see Gordon Brown’s laudable intentions translated into practical actions to deliver the much-needed extra homes.
The acid test will be whether the measures in the Queen’s Speech will speed up the planning system and unlock more land to let us build the homes this country needs.”
Members Briefing from Stewart Baseley (note you will have to be an HBF member and be logged in to view this briefing)
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Additional briefing - Key facts and figures on housing supply
1. Analysis of the Government’s own figures on land supply has shown that between 1997 and 2003, the amount of land being brought forward annually for development fell by 7%. The main driver for this has been a drastic fall in the supply of greenfield land. During this period, there was a 27% fall in greenfield land being developed, and a corresponding 14% rise in brownfield land.
2. In 2006, private and public housing completions totalled 160,234. However, Government figures released in March 2007 show that new households are being formed at a rate of 223,000 per year, leaving a current shortfall in housing supply of over 60,000 homes.
3. HBF’s own research has shown that it takes on average 475 days – nearly fifteen months – between the submission of a planning application and developers starting on site:
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4. Research conducted by the HBF from its major members shows that of the land held which has fully implementable planning permission, 97% has builders on site within three months of that permission being granted.
5. Recent research conducted by the Council of Mortgage Lenders showed that whilst home ownership is currently 70%, 84% of adults aspire to own their own home. This contrasts with figures from the newly established National Housing and Planning Advice Unit (NHPAU) on the ratio of house prices to earnings. In 2000, average lower quartile house prices were four times lower quartile earnings, but this figure had risen to seven in 2007. They also predicted that by 2026, this figure could rise to as high as ten times earnings.
6. For first-time buyers, the situation is particularly bleak. Figures from the RICS have shown that the average first-time buyer couple will now have to save up to the equivalent of 82 per cent of joint income to build up the amount of savings needed to pay for their home, deposit and stamp duty, compared to 25 per cent in 1996.
Notes for editors
1. The Home Builders Federation (HBF) is the principal trade federation for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for over 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk
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Paul Boulter
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