Housebuilders have their doubts about government targets
When the government revealed its target to build one million homes by 2020, plenty of those dreaming of stepping onto the property ladder must have rejoiced.
However, a study out today warns that they might have celebrated too soon, as over half (51 per cent) housebuilders believe that the target will not be met, with lack of land, painfully slow planning permission processes and skills shortages being some of the reasons to blame.
According to the research by property consultants McBains Cooper, not even a third (30 per cent) of the 389 housebuilders it surveyed saw the target as achievable, while 19 per cent said they were undecided.
However, those based in London are a little bit more optimistic, as 43 per cent believe the one million target is doable.
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"The finding that the majority of housebuilders think targets will be missed is a concern given the fact that more new homes are urgently needed," said Michael Thirkettle, chief executive of McBains Cooper. "It's worrying news for the economy with construction accounting for six per cent of GDP, and bad news for the industry as well as those desperate to get on the property ladder."
"The finding that most housebuilders blame a lack of available or appropriate land may concern the government, as it has said it will give faster planning permission for more construction on brownfield sites, but our survey suggests there isn’t enough brownfield anyway to build the required number of homes to meet the housing shortage."
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The builders felt more optimistic about government's target to build 200,000 low cost so-called starter homes, which are designed for the young, first-time buyer market, in the same period. Nearly half (48 per cent) said that this element of the vision for more homes could be realised.
Figures out earlier this week discovered that the construction industry grew at its slowest pace for three years last month.