Million homes target unrealistic,
say housebuilders
August 2016

Nearly three quarters of housebuilders think the Government’s aim of building a million homes during the current parliament is unachievable, according to the latest survey by the Build Show, as part of UK Construction Week, and Housebuilder magazine.

Housebuilders were also asked what they thought were the main constraints to increasing the UK housing supply; the top two answers given were problems with the planning system and the availability of enough skilled labour.

As one of the first canvases of the sector since the EU referendum, the survey revealed that over half said that Brexit would make meeting the UK’s new housing needs more difficult and only 11 per cent saying it would make it easier.

Those surveyed were sceptical of government initiatives such as the Starter Home scheme, with two thirds saying it will not boost supply or that they’re unsure. Similarly, only 40 per cent believed that government initiatives would increase the number of affordable homes being built.

When asked about the possible solutions to the UK’s housing needs, 64 per cent of housebuilders felt that SMEs were the key. Also identified was offsite construction with over two thirds of respondents saying it would play a major role in new home supply as was new investment models with over 75 per cent highlighting the contribution they could make.

Other findings from the survey include:
• One third of housebuilders believe the government should do more to encourage more people into the industry
• More than 60 per cent of those surveyed do not believe the private sector is capable of building enough homes to tackle the lack of UK supply
• According to housebuilders, access to finance is the biggest barrier for SMEs, followed by the planning system
• Almost two thirds of housebuilders believe that manufacturer innovation will play a key role in new home supply
• When asked what would be the one thing that would help them build more houses, the top five answers from those surveyed were: improvements to the planning system, more investment and access to funding, more skilled labour, increase in land supply and innovation such as offsite construction methods

UK Construction Week, Birmingham, NEC 18 – 20 October
www.buildshow.co.uk