Do you remember the one about how the government was going to preside over building far more homes, boosting growth and jobs? The last government promised 1 m over five years or 200,000 annually whch it delivered after covid. The incoming government promised 1.5 million or 300,000 a year. So far instead of putting up the rate of completions, they are down.
The Chancellor was arm wrestling the so called independent OBR to give her credit for more growth ahead from more homes which were going to come from easier planning rules. The OBR need to review that decision as numbers of homes have gone down, not up.
The collapse has been biggest in London, the part of the country with the dearest homes and the biggest shortages. A Labour Mayor and a Labour government have added more expensive regulations and allowed lower targets, against their own national policy. The new rules on two staircases in mid rise blocs, on net zero standards and more outdoor space requiring balconies, have undermined the viability of new flats projects.
The big tax attack and the government inspired or regulated price surges in water, energy, rail fares, Council taxes has also meant fewer people have enough money to think about buying their first home or about trading up. The housing market is sluggish or in decline as a result.
The Housing Secretary says they are sticking with his 1.5 m target. Few commentators and builders think there is any chance of hitting it. Labour would be doing well to get back up to the last government’s build rates. No more growth here than in China.
