CBI calls for rethink on housing policy

The Confederation of British Industry (CBI) has called for a step change in the speed and delivery of new homes and UK housing policy in order for the country to meet the government’s target of one million new homes by 2020.

In its report, ‘No Place Like Home,’ the business group called the current the current housing strategy “clearly unsustainable” and argues for more housebuilding, that more homes for renting should be built and there should be flexibility to tailor the types of houses that are built and the way they are delivered to better meet the needs and aspirations of the people who live in them.

The CBI said that home ownership cannot be the only answer but that there needs to be “a wide range of new housing tenures to be delivered that will be of benefit for all.”

The business group called for more help for “empty nesters” to move into smaller properties or retirement homes and proposes an exemption on stamp duty for these properties.

“Home ownership will remain an aspiration for many, but is not the only answer. While there is great value in giving those who aspire to buy their own home the opportunity to do so, it is important that government is also encouraging a wide range of new housing tenures to be delivered that will be of benefit for all,” the CBI said.

Looking at the UK’s housing strategy from a business perspective, the CBI said that the UK’s housing shortage is an “acute” problem for business because the lack of affordable homes hampers firms’ ability to recruit and retain the right people, and that long commutes impact workers’ productivity.

With the UK’s population set to grow by 10 million over the next 25 years, the CBI has called for a number of policies to ensure the UK’s housing challenge is met.

The CBI wants the Department for Communities and Local Government to form a strategic housing plan and for the forthcoming white paper on housing to be integrated through all relevant government departments and other relevant organisations.

The CBI wants the government to help small and medium-sized housebuilders by releasing small areas of public land and by making access to finance easier by rolling out its Home Building Fund and by making improvements to the private rented sector.

Josh Hardie, CBI Deputy Director-General, said: “Solving the UK’s housing shortage has long been a tough nut to crack. For Britain’s businesses, it is far from something confined to the news columns.

“It’s a problem the impacts of which are seen every day, from high prices barring people moving home and deterring them from applying or staying in a job, to the dent it puts in productivity.

“A quiet revolution in the way business and the Government think about, provide and deliver housing is necessary if we are to reach the welcome target of one million new homes by 2020.

The CBI also recommended:-

• greater flexibility should be given to Housing Associations and there should be an increase in capital spending on affordable housing.
• The National Infrastructure Commission include housing as a strand within its forthcoming National Infrastructure Assessment
• Look at the value of broadening the category of new homes that can be built on brownfield sites within the Green Belt
• That there should be joint collaboration between new players in the market such as hedge funds and construction contractors as well as established industry experts and further support for innovation in the sector, such as off-site manufacturing.

Josh Hardie added: “The “one size fits all” approach has passed its sell-by date. As the demographic landscape changes, we must have homes in the right places that fit the needs of people who live in them, creating vibrant and attractive communities.

“Equally, we must see different types of players in the market, like small housebuilders, more innovation and new partnerships between business to boost our supply base.

“A flexible approach, underpinned by government working with business, will enable us to deliver the homes we sorely need, and which will drive productivity, boost growth and increase prosperity in every corner of the country.”

Last month Philip Hammond, the chancellor, announced a £3bn package would be available to speed up housebuilding by using surplus public land and brownfield sites and by employing builders who can debvelop properties quicker than established firms.

The government is not meeting its target of building 250,000 properties a year. The latest data shows a 7% increase in new builds in 2015, up to 156,000 a year.