New housing demand will outstrip supply by 500,000 units by 2015, the UK’s largest builders group has predicted.
The shortfall, says the Federation of Master Builders’ (FMB) new report Tackling the Housing Crisis, is equivalent to the size of Birmingham.
The report also reveals that the number of small housebuilders is at the lowest since 1982 because of escalating costs and regulatory burdens.
“While bank lending is a massive problem, so is the government’s failure to reduce the burden on housebuilders that continues to make many developments too expensive to build, especially for small and medium-sized enterprises (SMEs),” said Brian Berry, director of external affairs at the FMB.
“Small building companies are often best placed to develop micro sites and help meet housing demand. However, the average cost of building on such sites is some 70% higher than estate housing which is partly to do with economies of scale but also because of the government persisting with policies that were designed during the housing boom.
“The result is that the number of SME building companies is at its lowest point for nearly 30 years.”
FMB is urging the government to ensure banks increase lending; review and reduce the financial burdens on housebuilders; end the current uncertainty in the planning system; and end the policy of gold plating European carbon standards.
