More housing helps keep prices in check and reduces dependency on bed and breakfast type accommodation as well as improves job/social mobility and economic growth.
Firstly, the description of ‘new town’ is a bit of a misnomer. It’s a little like describing the opening of an additional wing as a new hospital.
Most of these announcements made last week relate to expansion of existing suburbs and housing estates on the edge of established existing conurbations.
Further, the timescale for building starts seem incredibly optimistic i.e. three to start by 2029 – bearing in mind acquisition and financing of infrastructure and meeting tough environmental rules.
HOUSEBUILDING COLLAPSE
However, the announcement is not surprising bearing in mind how far the government appears to be falling behind its own housing targets.
But only new completions are habitable, not starts. Housebuilding has collapsed over the past two years and is not considered financially viable in around half of the country according to recent reports, due to rising regulatory, tax, planning and building costs, especially in London and major cities.
The proposals may not be perfect but anything that helps to get the country building again, particularly genuinely affordable, well-designed and located homes gets my vote. These targets must be regularly reviewed to make sure they are meeting aspirations.
MAKE PLANNING EASIER
The government cannot tell house builders where, when and how much to build but can make it easier to obtain planning.
However, planning reform alone won’t address the shortage and the growing gap between planning consents and built homes. House builders will only build at the rate they can sell while continuing to absorb the underlying costs and shortages.
If more appropriately sized homes of quality are not built in places of highest demand, buyers will have to wait even longer for prices to slow and/or wages to rise as a way of resetting affordability.
