Government Proposes Easing Rules for Smaller Housebuilders

Strategic Insights -

The UK government has released a working paper that proposes making it easier for small and medium-sized housebuilders to develop sites across England. The aim is to boost the supply of homes and address the growing affordability crisis, with a target to build 1.5 million homes in England by 2029. Housing Secretary Angela Rayner said the reforms will make the system simpler, fairer, and more cost-effective, enabling smaller builders to play a crucial role in achieving this goal. Under the proposed changes, smaller developers would be exempt from some environmental controls and the safety levy introduced after the Grenfell Tower fire. They would also receive over £100 million to access loans and invest in new technologies.

Key Takeaways:

  • The government has released a working paper proposing reforms to ease rules for smaller housebuilders to boost the supply of homes.
  • The reforms aim to make the system simpler, fairer, and more cost-effective for smaller developers.
  • Smaller developers would be exempt from some environmental controls and the safety levy introduced after the Grenfell Tower fire.
  • Over £100 million would be allocated to help smaller developers access loans and invest in new technologies.
  • Specialist planning experts would be involved in making decisions on smaller development projects.
  • The industry welcomed the proposals, but noted that the lack of affordable mortgage lending is the core reason behind lags in housing supply.
  • The Financial Conduct Authority is looking into ways to bolster mortgage lending.

Statistics:

  • The government aims to build 1.5 million homes in England by 2029.
  • The current planning system is expected to result in 305,000 new homes per year by 2029, according to the Office for Budget Responsibility.
  • Smaller developers built 40% of homes in the 1980s, but their market share has since shrunk.
  • Over £100 million would be allocated to small developers to access loans and invest in new technologies.

Sources:

  • "We're taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building" - Housing Secretary Angela Rayner.
  • "Planning complexity has meant smaller developers struggle to get sites done in a realistic timeframe" - Home Builders Federation executive director Steve Turner.
  • "the lack of affordable mortgage lending, in particular for first-time buyers, is the core reason behind lags in housing supply" - Steve Turner.
  • "The proposed reforms would have little effect if ministers failed to address the lack of affordable mortgage lending" - Steve Turner.
  • The Office for Budget Responsibility: independent forecasts predict 305,000 new homes per year by 2029.