Warning for Government on economy and key targets Government figures released today show developers started building 25% fewer homes in the first quarter of this year than last year; and completed 18% less. Whilst the figures are no surprise to the struggling home building industry, they are a stark wake up call to Government with clear implications in the short term for the wider economy and for their long term housing targets. Stewart Baseley. Executive chair of the HBF said today, “These figures are further evidence of the deterioration in the housing market. Whilst yesterdays announcements were welcomed, they do not go far enough and if further action is not taken and taken quickly, in addition to the immediate threat to jobs then the Government’s long term housing targets are in jeopardy.” One of the Government’s key policy commitments is to dramatically increase the number of houses being built to 240,000 a year by 2016 and a total of 3 million by 2020. It is estimated that whilst around 300,000 people are employed in building homes many more are employed either directly or indirectly in servicing the housing industry. From white collar workers such as solicitors, estate agents, mortgage brokers, insurance clerks to removals men, utility connection companies, brick, concrete and other material manufacturers, white goods and electrical providers, carpet/ kitchen/curtain manufacturers - there are a great many businesses and jobs reliant on house building and the residential property market. - Ends - 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. Headline figures A very sharp drop in private starts in England in 2008 Q1 (down 27.6%) on a year ago. A 24.4% drop in total starts in England in the first quarter on a year ago; Private completions in England down 22.4% in the first quarter on a year ago; Total completions in England down 17.7% in the first quarter; Annual completions in England, the new build figure that feeds into the Government’s net additions target, was 167,501 in 2007/08, down slightly from 167,577 in 2006/07; All the English regions recorded a big year-on-year drop in private housing starts – but biggest falls in London (33%) and the North West (30%) 3. In a package of measures the HBF has called for; A reduction in interest rates by 0.5% A limited length stamp duty holiday for first time buyers A permanent rise in 1% stamp duty threshold to £250K The £50Bn ‘special liquidity package’ to actually start working A first-time Buyer Deposit Loan Scheme to assist first-time buyers to bridge the gap between prices and the amounts lenders are now willing to lend. A reduction in regulatory costs (CIL, zero carbon, Lifetime Homes) A widening of the definition of affordable homes Allocation of funds to allow RSL/s to purchase new homes Mortgage interest relief for first time buyers and parents helping children on to housing ladder For media enquiries, or to arrange an interview, please contact Steve Turner 020 7960 1606 07919 307 760 steve.turner@hbf.co.uk
