Will Cameron’s housing pledge work?

The most recent Conservative Party Conference was held in Manchester between 4th and 7th October. One key issue raised was the housing supply crisis, for which Prime Minister, David Cameron has set fourth plans to build 200,000 new starter homes.

Do you believe this is enough to ease the pressure in today’s market? From a conveyancing perspective, will this development have a positive or negative impact on your business?

Mark Hayward, Managing Director, National Association of Estate Agents (NAEA) comments:

“Today’s announcement from David Cameron on his plans to build 200,000 new homes is good news, but it simply isn’t enough bricks and mortar to lift us out of the crisis we currently find ourselves in. And as always, with the word ‘affordable’ who actually defines what affordable housing is?

“We first heard this pledge in Cameron’s pre-election campaign, and we still support the sentiment. However, other initiatives such as the Help to Buy scheme still remains in place and it boils down to the fact that we are still waiting to see new homes being built; and whilst we wait capacity remains stretched, infrastructure is not in place and house prices continue to grow.

“Our latest housing report found that sales made to first time buyers (FTBs) fell to the lowest level since July 20141. One in five sales (20%) were made to FTBs in August, compared to 23% in July and 24% in June, indicating movement in the market is getting tougher and tougher. First time buyers have been squeezed out the market for some time; it’s taking young buyers longer to get their foot on the first step of the ladder, which in turn increases pressure on the rental market.”

Lawrence Hall, Head of Communications at Zoopla comments:

“The Prime Minister’s pledge to build more starter homes for first-time buyers and amend requirements for developers represents positive news for those trying to take their first step on the property ladder and affords more flexibility to those attempting to provide the houses they will actually live in.

“However, while 200,000 starter homes by 2020 sounds like an impressive figure in isolation, the UK needs this many new homes each year to address the housing supply shortage that has plagued the nation for some time and caused real issues for prospective home buyers.

“Truly turning generation rent into generation buy will be a long and difficult journey, but this announcement represents an encouraging first step.”

References

1. All figures from the NAEA’s August 2015 Market Report

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