While the Queen’s speech offered some Christmas cheer for housebuilders, some of the promised reforms are bound to prove contentious in cold light of January.
IMMIGRATION
The Brexit vote cast a long shadow over the housebuilding industry’s workforce, and the Queen’s Speech has offered little in the way of sunshine. Boris Johnson’s proposed points-based immigration system favours workers who prefer not to get their hands dirty.
Brian Berry, Chief Executive of the FMB, said: “A skilled construction workforce will be critical to delivering on the Government’s plans for infrastructure and housing set out in today’s Queen’s Speech. Over half of small builders are struggling to recruit a bricklayer or carpenter, yet it could prove very difficult to fill these roles from outside the UK under the proposed points-based immigration system.
“The government must work with industry to ensure that the new immigration system works for construction, and that the National Skills Fund trains our domestic workforce in the trades that are needed or else the sector will struggle to deliver.”
SUPPORT FOR FIRST TIME BUYERS
With Help to Buy facing demolition in 2023, First Time Buyers should welcome a 30% discount on local homes. But let’s not forget that the government’s track record on starter homes is woeful, and the small print of the manifesto promised only 19,000 homes for the new scheme.
Vadim Toader, founder and CEO of Proportunity, a fintech startup offering Help to Buy-style loans, said: “In theory, offering discounts on homes for local first-time buyers seems a sensible and fair policy. However, given the considerable failure of the Starter Homes scheme, this policy must be viewed with some scepticism. What’s more, limiting this policy to local homes only restrains the opportunities available to young people, who may want to live elsewhere for better job opportunities or quality of life.
“The government is right to look for new measures to encourage home ownership among young people, but should be focusing on removing the main obstacle to getting on the housing ladder: sky high deposits.”
PLANNING REFORM
Boris Johnson teased planning reform in his vote-winning manifesto, and now we have some detail on what that means.
The planned reforms are set to include: adding extra storeys to homes without necessarily needing planning permission; building on the greenbelt where developments already exists; and operating a system of rebates when local planning authorities do not grant planning permissions in the statutory period.
Richard Beresford, chief executive of the NFB, said: “The NFB represents all types of businesses and today’s announcements will help all of them, from businesses that demolish sites and build extensions, to developers who build out existing communities but struggle with a broken planning process. We look forward to helping shape the policies that the Government brings forward.”
Rico Wojtulewicz, head of housing at the House Builders Association (HBA), added: “The Government is correct to focus on planning reform, especially the delay-ridden planning process and objection to building on strategic green sites. If implemented, we should see many more of the right homes built in the right places and ensure fewer builders go out of business because local authorities cannot grant permissions in time.”
