Regulation must be slashed or budget cuts will see housing crisis deepen Today’s statement by George Osborne included a welcome commitment to reducing regulation – something HBF has been pressing Government to tackle long and hard. We now need to see this implemented. This must include; an affordable and deliverable decision on the definition of zero carbon; and a more flexible approach to the definition of ‘affordable housing’, allowing developers to play their part in providing innovative solutions to meet peoples’ needs. The cuts outlined in the housing budget must be matched by a huge reduction in the regulatory burden placed on developers, clear planning policy guidance and an effective local incentive for home building if the Government wants to avoid presiding over a catastrophic housing crisis and meet its objective of an improved supply. In that regard whilst today’s Spending Review gives some more detail on the New Homes Bonus incentive, final detail and clear guidance on the new Planning system is desperately required if the cuts announced are not to see house building levels – already at an 80 year low - fall further. Local Authorities, having seen their budgets cut by nearly 30% will desperately need the income generated by the Bonus – but need the detail to plan. Speaking today, HBF Executive Chairman Stewart Baseley said; “We knew cuts in budgets were coming to all areas. It would have been naïve to think housing was any different. However, Government needs to act decisively now to reduce red tape and regulation. In such austere times house building can simply no longer support the wishlists of central and local Government. Regulatory requirements must become realistic and affordable. House builders and Local Authorities also urgently need clarity on the planning system and the incentives on offer. Having seen their budgets slashed by 30% local Authorities need to see the potential income generated from building new homes. Without further decisive action the Government risks worsening an already acute housing crisis.” For media enquiries, or to arrange an interview, please contact Steve Turner on 020 7960 1606 / 07919 307 760 or steve.turner@hbf.co.uk Follow us on Twitter! www.twitter.com/homebuildersfed Notes to Editors: The Home Builders Federation (HBF) is the representative body 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
