The government’s manifesto pledge to have a target of building 300,000 new homes each year is now in jeopardy as 47 MPs signed an amendment to the Bill banning ‘top down’ mandatory housing targets.
The MPs did so against the backdrop of yet another failure by a government to reach the existing 300,000 target – as they announced that 232,820 homes were added to England’s housing supply in 2021/22. Although this included 210,070 new homes, it falls well short of the annual target – which was last achieved in 1977.
There is no silver bullet when it comes to solving the UK’s housing crisis but nationally set housebuilding targets exist for a reason. Indeed, The Home Builders Federation previously warned that scrapping the 300,000 targets could lead to 100,000 fewer homes each year. This is unacceptable.
Supply crisis
We are facing a chronic shortage of homes resulting in soaring house prices which drive deposit requirements and mortgages ever higher. This means first-time buyers are finding it harder than ever to get on the ladder.
Added to this, high interest rates are forcing up the mortgage costs for millions.
Housing targets help to catalyse supply as well as providing consistency and stability – all things the market desperately needs as we seek to rebalance supply and demand.
We need a national conversation about the reasons why we’re building homes. To make our country prosperous and grow the economy, I believe everybody should have a home that’s decent and affordable. Secure housing is more than a roof over our heads, it drives positive outcomes in health, education, and social mobility.
It’s understandable that people are protective of their communities and don’t want undue disruption or pressure on services and infrastructure, but the trade-off is between that, and millions of people being blocked from the benefits homeownership brings.
Those supporting the effective removal of the 300,000 housing targets argue they want to put control in the hands of local people. We agree this is an essential component of deciding the development of communities, but this is no reason why the government should step back from having nationally published housing targets.
There is certainly scope to debate how national targets are developed and how we can better understand local need, but all too often we have seen that if targets are not in place, things simply do not get done.
Here at Leeds Building Society, we want to see the government adopt a long-term strategy to solving the housing crisis.
Listening to experts and aspiring homeowners to deliver the radical change the market needs would be a very good place to start.
