ResidentialOct 19 2017

PM in talks with developers to ramp up housebuilding

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PM in talks with developers to ramp up housebuilding

Prime Minister Theresa May has met with housing developers to discuss plans for a ‘step change’ in the provision of new homes.

The meeting, which took place at Downing Street on 17 October, saw representatives of large and small housing developers, housing associations and local government set out their ideas and discuss the barriers that stand in the way of building more homes.

Attendees also discussed modern methods of construction, the availability of skilled workers, how to help small and medium-sized enterprises grow and how to ensure planning permissions granted by councils lead to the construction of new homes.

The government has recently announced a raft of measures aimed at boosting housebuilding, including pumping an extra £10bn into the Help to Buy scheme.

A cut in stamp duty for first-time buyers has also been floated by Chancellor Phillip Hammond ahead of the Autumn Budget, the Evening Standard recently reported.

But the government has faced repeated criticism for not tackling the root cause of the housing crisis – a shortage of supply – and focusing instead on measures that subsidise demand.

Opponents of measures such as Help to Buy and a stamp duty cut argue the measures push up house prices while doing little to boost the construction of new homes.

One controversial topic is the issue of landbanking, where large developers reportedly obtain planning permission but fail to build housing as they wait for the value of plots to increase.

The government has also been accused of not doing enough to free up Green Belt land for development – a measure that could open up large swathes of the country for construction in areas where the demand for new homes is greatest.

A government spokesperson said: “It was a positive and collaborative meeting which needs to signal a step change in house building if we are to build a country that truly works for everyone.”

simon.allin@ft.com