The Institute for Public Policy and Research (IPRR) has issued a new report warning that the UK is at risk of a “lost decade” of house building unless the development industry is reformed.
The report states that the previous 2 house building recessions in 1974 and 1990 both resulted in a “lost decade” of housing output and there are good reasons to believe the building sector trajectory is currently heading toward the same outcome.
The report recommends that the development process no longer looks to make large incomes off small house numbers, and instead the process is split in two —land trading and house building.
The IPRR says that if there is no change now then house builders are likely to use the money laid down by the Governments Housing Strategy not to build more homes like we would expect, but to build homes in different places.
The report says;
“There is a real danger that existing UK house builders will merely use building on public land to displace activity from less viable market sites, leading to no net increase in output”.
The IPRR wants more for taxpayers’ money and suggests that restrictions are put on house builders bidding for public land where strict build out times are specified and new entrants targeted in the bidding process, and for all land sales to be registered with the Land Registry. Currently only 75% of land sales are registered.
The report also calls for public land to be allocated to self-builders, and also for the Government to bring in its land auctions initiative announced previously to make land prices more competitive.
Today’s Conveyancer, bringing you the latest conveyancing news and updates.
