The Home Builders Federation has responded to the government’s announcement of the new ‘Delayed Homes Penalty’, saying “home builders do not delay build-out”.
In its recent announcement, the government said that developers would be required to commit to delivery timeframes as a condition to secure planning permission. They would also have to submit annual progress reports to local authorities and, if they fall behind with delivery without good reason, could face paying a ‘Delayed Homes Penalty’ worth thousands for each unbuilt home.
Neil Jefferson, chief executive at the Home Builders Federation, said: “Numerous independent reviews have concluded that home builders do not delay build-out, not least the CMA’s Market Study, published only last year.”
“The reality is that developers only see a return on investment when they sell homes. Having purchased land and navigated the costly and bureaucratic planning process, there is no reason not to build and sell homes.”
“If we are to tackle the housing crisis, ministers need to focus on the actual reasons as to why home building levels are flatlining, which have largely been ignored – the lack of government support for first-time buyers that is suppressing demand, and the dearth of housing associations in the market for affordable homes.”
“Whilst the planning changes announced last year and the government’s ambition are very welcome, much more is needed if we are to get anywhere near the challenging target it has set.”
