Government’s plan of 2 million homes by 2016 at risk

Posted under General by Michael

The UK Government’s ambitious plan of 2 million homes by 2016 is likely to get   setback.
According to David Stubbs, senior economist at Royal Institute of Chartered Surveyors (Rics), weak market and excess inventories of unsold homes has compelled building firms to drastically reduce building activities. The number of new-builds fell by 24% in the last three months as per the figures available with the government.

He opines that problems in mortgage market and slow down in economy will continue to cause decline in house building. Government’s pledge of building three million homes by 2020 seems a distant possibility.
Annual hosing start figure totalling 156,400 in 2007-08 fell by 10% compared with 2006-07. The figure is 18% less when compared with 2005-06. In fact since 1992-93, number of completions exceeded number of starts for the first time in 2007-08

National Housing Federation (NHF) spokesperson also says that it will be difficult for the government to achieve its target if it fails to take care on its part. At the same time he emphasizes that social housing is becoming all the more crucial due to high housing prices which people are struggling to afford.

The Home Builders Federation (HBF) the industry’s trade body will be urging the government assist the market.  Gordon Brown, fearing that property prices are likely to fall by ten percent, announced plans to help the market yesterday.