黑洞社区

Senior figures from the residential development industry have hit out at the failure of the chancellor鈥檚 autumn statement to deliver any support to the struggling housebuilding industry, despite the OBR forecasting that build rates will drop sharply over the coming years.

The boss of the Home Builders Federation (HBF) described the statement as a 鈥渕issed opportunity鈥�, while other housebuilders described it as 鈥渂itterly disappointing鈥� and said the failure to address planning in the statement meant there was zero chance of the government hitting housing targets.

Jeremy Hunt used his autumn statement to deliver a 拢55bn fiscal tightening in the economy by raising taxes and cutting public spending 鈥� which included raising 拢4bn of revenue by announcing a cancellation of the previously declared 鈥減ermanent鈥� cut to Stamp Duty Land Tax after 2025.

The chancellor included no other measures targeting the residential development industry in his autumn statement package, despite it arriving just weeks after mortgage rates have spiked to 14 year highs and amid predictions of sharp house price falls next year.

The government has also just withdrawn its longstanding Help to Buy product which aids first time buyers to get a foot on the property ladder by offering a 20% deposit in the form of an equity loan.

Alongside the statement the Office for Budget Responsibility (OBR) published forecasts suggesting a cumulative 9.2% drop in house prices between the 2022/23 financial year and 2024/25, with private housing completions dropping from 174,450 this year to a low of 134,561 by 2025/26.

Completions are not forecast to recover to their current level by the end of the forecast period in 2027/28. The housing market predictions came as the OBR said UK citizens faced the biggest hit to living standards on record over the next two years.

Stewart Baseley, executive chairman of the HBF said: 鈥淒espite the clear threats to supply levels, and the associated impact on the social and economic benefits of building new homes, there is little in [yesterday鈥檚] statement to assist housing delivery.

鈥淲e would urge the Government to engage with industry and look to develop policies that will support demand for new homes and address the acute constraints we face. The autumn statement was a missed opportunity and whilst Government may be nervous about the politics of new housing, intervention is crucial to the prospects for first-time buyers and the millions of jobs supported by the industry.鈥�

Adam Lawrence, founder of developer London Square, said the autumn statement had 鈥渇ailed鈥� to help an industry which was now 鈥渦nder siege鈥�. He said: 鈥淥ur customers have never had it so tough as it is now. The autumn statement provided an opportunity for the government to make a difference and, apart from stamp duty changes remaining until 2025, these issues have not been addressed.

Lawrence questioned whether there was any chance of the government meeting its housing targets without additional action. He said: 鈥淓very part of our industry is under siege and our customers are suffering.

鈥淭he Government needs to provide practical help to first time buyers now Help to Buy has ended. It needs to encourage investors into the private rental sector. It needs to address the planning system which is holding up the supply of new homes. The costs of building materials are rocketing due to Brexit and inflation.

鈥淐ombined with the increased cost of borrowing, these factors are slashing the delivery of all homes, from affordable social rent and shared ownership, to homes for private sale to first-time buyers and home movers.鈥�

Simon Cox, managing director of strategic land firm Walter Cooper, said he was pleased that the stamp duty cut was continuing at least until March 2025. 鈥淗owever, I鈥檓 disappointed in the lack of housing policy included in this announcement,鈥� he said. 鈥淲ith 鈥榞rowth鈥� stated as one of his key priorities, I think this is a missed opportunity for the chancellor. 黑洞社区 more houses is a vital step in industrial and economic growth. Developers and housebuilders have a hard few years ahead of them.鈥�

Rico Wojtulewicz, head of housing and planning for the National Federation of Builders, was one of a number of commentators to highlight the lack of any mention by Hunt of tackling the current chronic delays in the planning system in the autumn statement. He said the system needed reform. 鈥淭he planning process sustains our housing monopoly and strangles growth, which is why in places such as Japan and Germany, land use, regional planning, and permission certainty is a primary function of enabling opportunity,鈥� he said.

鈥淭he Government needs to practice what it preaches because it has spent the last twelve years avoiding coherent planning reform and therefore missing out on sustained growth. Revering Singapore, Germany and Japan is no good if you aren鈥檛 willing to risk some political capital by enabling their core supply side mechanisms.鈥�

Mark White, managing director for Hampshire-based housebuilder Bargate Homes also called for planning reform. 鈥淲hy is more not being done to fix the planning system, solve the prolonged phosphates, nitrates, and nutrient neutrality issue, and stimulate the new homes market?鈥�

Adam O鈥橞rien, managing director of fellow Hampshire housebuilder Metis Homes, said he was 鈥渦nderwhelmed. There was no mention of a tangible focus on planning reform, without which there is zero chance of hitting the government鈥檚 own housing targets,鈥� he said.

鈥淭he government must give us the ability to obtain planning permissions for well-conceived schemes in a timely fashion.

鈥淔undamentally, where is the tangible support for the new homes industry, behind all the recent rhetoric about making planning and housebuilding 鈥渆asier鈥�, 鈥渓ess ugly鈥� and 鈥渓evelling up鈥�? We have a planning system on its knees and growing regulation - particularly from Natural England - is keeping it down.鈥�