Homebuilding targets ‘unachievable’

A survey by Knight Frank reveals that 67% of housebuilders think that the maximum sustainable annual delivery of new homes is 180,000 or less, below the figures that all the main parties have promised. More than half of all respondents added that a rise in the delivery of affordable homes over the next year was unlikely.Justin Gaze, joint head of residential development at Knight Frank, said: “The inability to create the necessary number of new homes is being driven primarily by a skills shortage in the development sector, limited development funding and the lengthy mortgage approval process, which is delaying purchasers.” Another issue weighing on housebuilders, is that of the new community infrastructure levy, implemented by the government this month. More than half of the builders surveyed said that they were concerned by the new levy. The reservations of housebuilders come at the same time as Ed Miliband pledged to start construction on 1m new homes by 2020. The Financial Times asks economists and academics for their views on the political parties’ plans for dealing with the housing crisis. The experts regard many of the proposals as counterproductive, arguing that they show a lack of understanding of the industry. They also wonder where the funding is going to come from to fulfil all the plans.