Member Article

North West home-builders want help with supply before new Help to Buy

Home-builders in the North West have said that ‘unachieveable’ government targets and delays in planning processes hinder residential development according to a report published by BDO.

The report found that 94% of MDs and CEOs from major developers and housing associations thought government targets of 245,000 new homes per annum in the next two years are unrealistic.

In the North West, the estimated demand for new homes is up to 19,600 each year.

The planning process is still the main barrier to development, closely followed by land availability and housing bosses felt that if these challenges were addressed they could increase output by 19% on average.

More than half (52%) of respondents thought the National Planning Policy Framework has made no difference.

Some developers (18.8%) even reported that the NPPF is creating more problems than it is solving, such as imposing developments on local communities without the appropriate infrastructure to support it.

Tim Entwistle, partner and head of BDO LLP in the North West said: “While sentiment regarding the achievability of government targets is wholly negative, what is really surprising is that it can be rectified with a few small tweaks to planning policy and to the distribution of public sector land.

“The general election is the right time for all political parties to address the barriers to housebuilding.

“The Help to Buy ISA announced during the Budget is a step in the right direction and would serve to support more first-time buyers in the region to get on the housing ladder.

“However, let’s hope the government takes the opportunity to help developers with the supply issue before the demand for such an incentive takes hold.”

This was posted in Bdaily's Members' News section by Sophia Taha .