The hung parliament has put the house building sector into limbo even though it is in urgent need of immediate stimulus and a feasible long-term strategy, the Society of Mortgage Professionals has warned.
Society of Mortgage Professionals head of operations, Vishal Pandya, pointed to "months of uncertainty ahead" as a new coalition government is formed, or another election is confirmed for later in the year.
Mr Pandya said: “The house building industry is in desperate need of some sustained stability, but is now faced with a period of uncertainly, where other political issues may force a housing policy to take a back seat."
Even if such a result had not transpired, Mr Pandya was sceptical about the state of the market.
He said: “Labour’s pledge that they would build a million new homes over five years made for a great sound bite but it is a target that the Conservative administration have found impossible to live up to.
"Last year, for example, the figure was 153,300, according to the Department for Communities and Local Government.
“Using figures compiled by the House of Commons Library, it has been 30 years since annual house building averaged 200,000 units a year or more. In the six years they have been in power, the current Conservative government has managed to create 127,000 new homes a year.
"Clearly, it will take a great deal more than a promise made on a manifesto to turn intention into reality.
“The recent housing white paper went some way to acknowledging the problem and contained some interesting measures designed to reduce the deficit,” he continued, “but no-one seems to be talking the ‘Brexit factor’ into account and that will surely have a significant impact on any plans in the next five years and beyond?
“In many ways, the housing market has made great strides since the recession, but the gulf between supply and demand -- the gap between the number of homes available and the number wishing to buy - continues to increase.
"Addressing this is the number one priority and it must be given the importance it needs.
“We hope the new government - in whatever shape or form it takes - will quickly re-focus on the need for affordable starter homes, show a more flexible attitude to suitable brownfield sites and instigate planning reforms to support small builders.”
stephanie.hawthorne@ft.com
