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Government unlikely to meet 2020 housebuilding target says Redrow boss

  • 17/05/2016
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Government unlikely to meet 2020 housebuilding target says Redrow boss
Further doubt has been cast on the government’s housebuilding target as Redrow’s chief executive John Tutte said it was unlikely that one million new homes will be built by 2020.

Speaking at the Instinctif Great Housing Debate, Tutte said that while the government looked set to miss its overall goal, the number of homes being built on an annual basis was on the rise.

He said: “The government originally set out to deliver one million over the course of the parliament at an average of 200,000 a year. Well we’re now into the second year of delivering the government’s housebuilding target and we’ve not hit that annual target yet. Having said that, the latest figures I’ve seen show that the industry should hit 200,000 new homes per year within the next 18 months.

“I don’t think we’ll achieve the government’s target of one million but I do think the industry will actually exceed the target of 200,000 per year at some stage.”

In addition to the government’s ambitious goal to build one million homes within the course of this parliament, it also hopes to build an extra 200,000 to be used as part of its Starter Homes Initiative, which will be sold at a 20% discount to first-time buyers under the age of 40.

However, Tutte said this was a target also likely to be out of reach for the industry.

“The problem that the government has also had is that its Starter Homes Initiative has been a bit of fiasco in trying to get it approved in parliament. I can’t see the number of Starter Homes that the government has pledged to build being achieved either.”

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