Today’s household projection figures make economic and social implications of ‘strangled’ supply clear Today’s Government household projection figures demonstrate the desperate need for action to get home builders building again. The figures, that show the number of households is expected to grow even more than previously expected, highlight clearly the desperate economic and social implications for the future of allowing the current artificial constraint on housing supply to continue. The Government’s target of 3 million new homes by 2020, an already increasingly challenging target because of the current industry climate, was based on previous household projections. With today’s figures showing that the number of households in England is projected to grow to 27.8 million by 2031, an increase of 6.3 million on the 2006 estimate, the possibility of a major housing shortfall in the future – with the corresponding house price and social implications are stark. The need for Government action to tackle the major causes of the current supply constraint has never been clearer. If it is to avoid significant problems in the future, and a further loss of house building industry capacity, the Government must as a matter of urgency; • Use the influence it now has in the banking sector to ensure some sensible levels of mortgage lending return – the key issue affecting supply. Builders cannot build homes if people are unable to get a mortgage and so meet their aspiration to buy. • Look to use public money in a range of innovative ways to kick start housing sites of all types (see note 2 below for details) Stewart Baseley, Executive Chairman of the HBF said: “Today’s figures are a stark warning of the need to get builders building again. Housing supply is being strangled by the lack of mortgage availability at the very time we should be increasing output. The Government needs to act now, otherwise further jobs and industry capacity will be lost – and let us be clear there is no one else apart from the private house building industry going to build these desperately needed homes”. - Ends – For media enquiries contact Steve Turner on 07919 307 760 or steve.turner@hbf.co.uk Notes to Editors: 1. The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk 2.Public money needs to be directed towards social rented housing, intermediate rented housing, open market sales with measures such as HomeBuy Direct aimed at first-time buyers, infrastructure provision, joint-venture or partnership agreements with private developers and alleviating onerous planning obligations demands. In addition local planning authorities need to be realistic about S106 planning obligations demands and responsive to house builders’ efforts to replan the mix on housing sites to meet today’s difficult market conditions. Using a portfolio approach for the public money available will help protect home building industry capacity and jobs and increase output, but in a way that creates sustainable mixed communities that cater for all housing needs and ambitions, not mono-tenure housing estates. 3. Today’s stats can be found on the Communities and Local Government Department web site at; http://www.communities.gov.uk/publications/corporate/statistics/2031households0309
