Barriers to development highlighted by industry while housing secretary urges developers to ‘get on and build’
Delegates assembled for HBF’s annual Policy Conference this week heard from a range of home builder, analyst and wider sector speakers about the complex challenges developers face as they look to increase housing supply.
On the day the government published its Future Homes Standard, with a requirement for 40% of the building footprint to be covered by solar panels on the roof – well above the amount industry had recommended – and against a backdrop of new levies, increased taxes and rising policy costs, the viability of new housing was a prominent theme cited by builders of all sizes covering all geographies.
Secretary of State for Housing, Communities and Local Government Steve Reed spoke, telling home builders to get Britian building again, as part of the government’s plan to recreate a housing supply boom comparable to the 1940s postwar era.
Addressing delegates, Reed repeated his “build baby build” slogan, saying that home builders need to “get applications in and shovels in the ground” taking advantage of a forthcoming reduction in planning red tape.
The annual conference brings together industry leaders, policymakers and experts to explore how the UK can deliver the homes it needs.
Neil Jefferson, chief executive of the Home Builders Federation, opened the conference with an overview of the industry’s challenges, highlighting ongoing constraints in planning, regulation, and market conditions, and calling for coordinated action to unlock housing supply.
In response, Reed reflected in his address on his first 200 days in his role as housing secretary, stating that he has heard the need for renewed confidence in the housing market from industry. Reed noted plans to publish a long-term housing strategy to “drive transformational change” and plans to support pro-building local governments by ensuring that they are also supported with funding for infrastructure.
Reed faced questions from delegates on:
- The lack of government support for first-time buyers – the first time in more than 60 years that no home ownership assistance is available.
- The forthcoming introduction of a new tax on new homes with the Building Safety Levy’s implementation now just six months away, adding thousands of pounds to the cost of building each new home.
- Ongoing difficulties and delays in the planning process.
- The lack of support for SME home builders in the current tax and regulatory environment, threatening small site viability
The Future Housing Standard, published earlier in the morning, was notably absent from Reed’s speech. With the sector already facing pronounced viability challenges, the announcement confirmed 40% solar panel PV requirement on all new housing stock poses an additional financial burden on development, further straining viability.
The conference, chaired by journalist and broadcaster John Pienaar, explored a broad range of topics including planning reform, access to mortgages and finance, regulation, taxation, and the challenges relating to skills, materials and resources. Sessions also addressed environmental sustainability, quality standards, and the role of innovation in progressing towards net zero.
Amy Rees, chief executive of Homes England, reaffirmed Homes England’s intentions to work with industry to support housing delivery through targeted interventions and partnerships, with a focus on unlocking land and accelerating development.
Greg Fitzgerald, chief executive of Vistry Group, delved into the viability crunch facing the sector, talking the audience through a real world example of a site in the South West which was a viable development opportunity a decade ago but which now has a negative land value and would effectively require the landowner to pay the builder to take on the site.
Ian McDermott, chief executive of Peabody provided insight into the housing association sector’s role and the opportunities and challenges ahead.
From Savills, Lucian Cook and Emily Williams examined the housing market, including sales trends and forecasts for land, planning and completions. Frances Haque of Santander provided an analysis of the wider economic outlook and its implications for the sector.
A panel on planning for 1.5 million homes, led by Catherine Williams, planning director at HBF, discussed the impact of the series of planning reforms on housing supply.
An industry technical update was delivered by Chris Doré alongside Rhodri Williams, focusing on infrastructure, innovation and sustainability considerations.