Writing in the CML’s News and Views magazine, CML chairman and mortgages director at Lloyds Banking Group Noakes said there is no silver bullet, adding: “But there is a greater need for affordable homes through a combination of more shared ownership, social rent and affordable rent, which have to form a certain percentage of new housing developments.
“To make this happen, there will have to be incentives for developers. At the moment, they will always turn to the owner-occupied option as this offers greater returns. Such incentives could be provided through the planning framework, potentially in the form of subsidies.”
He said this model already works overseas but it could be made to work in the UK.
“The key issue remains the imbalance between housing supply and demand.”
