The government has laid out plans to tackle the growing housing crisis in a new report. The country’s property shortage has been well publicised, and the 104 page white paper, Fixing our broken housing market, seeks remedy in the short and long-term.
The ratio of median house price to median earnings in England rocketed from under four in 1997 to nearly eight in 2015, according to report.
In her foreword to the study, prime minister Theresa May conceded that “our broken housing market is one of the greatest barriers to progress in Britain today” – a view that is shared by industry experts.
“It is huge problem,” said Jeremy Duncombe, director at Legal and General Mortgage Club, who explained that the country requires 230,000 new homes per year, but has been building 130,000 or fewer.
“Not only are we not building enough, but it’s getting worse because we’re 100,000 plus houses short every year.”
The government has proposed four steps to rectify the situation: planning for the right homes in the right places, building homes faster, diversifying the market and helping people buy now.
With regards to the last measure, the government previously committed £8.6bn for its help-to buy scheme, with supporting those trying to get onto the housing ladder a key priority.
Mr Duncombe was also encouraged by plans to back small and medium-sized builders, which he said should drive diversification instead of effectively requiring companies to stick to the five or 10 largest building firms.
He also suggested that building properties specifically for the rental market represented a positive step, but felt disappointed that stamp duty was overlooked. “There some very positive measures, but my concern is how quickly these can be brought to fruition.”
“We need a joined-up plan that goes over different parliaments not just delivered for one term which has been the issue in the past,” he explained.
craig.rickman@ft.com
