The Federation of Master Builders (FMB) has welcomed the government’s “swift action” to encourage local authorities to build new homes, but said it was now up to councils to deliver.
Under the new scheme, announced yesterday, the government will match the council tax raised don each new house for six years.
FMB director of external affairs Brian Berry said the government’s “swift action“ to tackle the housing shortage was encouraging.
“With housebuilding at its lowest level since 1924 and over 4.5 million people on council house waiting lists we have a serious and growing housing crisis. If the New Homes Bonus scheme succeeds in encouraging councils to build in the kinds of numbers that we need to keep up with ever growing demand then it will be a massive achievement,” said Mr Berry.
However, he warned that some councils would not participate because of local opposition to the building of new homes. “Everyone is agreed that more housing is needed but many are resistant to having these homes near them. Somehow we need to ensure that all councils are persuaded of the merits of building new homes, and that they provide a sufficient supply of land to enable the housebuilding sector to deliver for the future needs of the local communities,” said Mr Berry.
Estate agent Hamptons International has also welcomed the scheme.
“The current level of housebuilding is woefully inadequate to meet demand. Many areas of the country, notably in the south, are simply storing up affordability problems for the future,” said head of research Adam Challis.
