Wednesday, October 6, 2010

Supply and demand

Housing crisis looming as plans for thousands of affordable homes scrapped

Thousands of affordable homes planned for the West will not now be built, sparking a housing crisis across the region. That was the warning from housing associations last night, frustrated that the scrapping of Government targets for new homes has hit the building of affordable housing for the poorest in society the hardest. It comes as new figures reveal 1,300 planned new homes have been axed every day since the general election in May.

Posted by debtfree @ 12:51 PM (1779 views)
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12 thoughts on “Supply and demand

  • sibley's b'stard child says:

    King of the NIMBYs speaks:

    ““We welcomed the scrapping of the old Government’s top-down targets, because they led to a lot of inappropriate housing being forced on communities that didn’t want them. But there is a great need, particularly in the West Country, for affordable housing and that need has not gone away.”

    “What we want to see is powers given to local councils and local communities to be able to resist large-scale unwanted housing development, but at the same time ensure that affordable housing is still able to be built,” he added.

    Yeah, but no, but yeah…

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  • mark wadsworth says:

    The Tories did not “scrap targets for new homes”, they just set a new more achievable target of “none whatosever”.

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  • the number cruncher says:

    My local council has scrapped two large developments of about 500 homes, admittedly it is more to do with developers not interested in buying the land at a price that will enable the council to pay for the associated redevelopment they wanted.

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  • “The Home Builders’ Federation claimed that the four unitary authorities that made up the old Avon had scrapped plans for 38,000 homes, and under new Government rules, that would end up costing them £340 million in lost Government incentives.”

    That’s only about £10,000 per new house while the houses themselves will retail at about £250,000. Not very generous Mr Shapps.

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  • More aggreived VI’s waving shrouds..

    ..as I’ve pointed out before, this is all about the big developers’ monopoly being challenged.

    They are sitting on huge land banks, yet elect to build a minimal quantity of homes on that land, in order to foster a shortage of property and maintain their land bank’s value.

    The big developers have become speculators first, and builders second – that needs to change..

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  • mark wadsworth says:

    UT: “The big developers have become speculators first, and builders second – that needs to change.”

    Correct, as evidenced by the fact that the big developers mothballed new construction for a year in 2008-09.

    Now, remind me, what kind of tax would light a fire under their ar*es? A tax that would collect money (thus enabling mroe damaging taxes to be cut) without dampening economic activity?

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  • MW,

    The way to light a fire under their derrieres is for our Grant to summon the top CEO’s to Whitehall, and inform them that unless they start building 300k new homes each year, he’s going to declare open season on all brownfield land across the realm, and auction off 50,000 acres of surplus MoD land for self build – thereby devaluing their land banks..

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  • good idea UT

    anyone told shappy?

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  • mark wadsworth says:

    UT, that might just work as well, but you are missing the point.

    The Tories WANT to get new construction down to zero, because it plays well with the voters. Ask that morbidly obese one, or Justine Greening or John Redwood or Greg Clark.

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  • MW,

    You’re wrong – the paradox of modern politics is that the stereotypes have reversed – Nu Labour feather bedded the rich while pretending to care about the poor, and put the cares of the baby boomers before the next generation…

    .. now the Tory led coalition is soaking the rich as Nu Labour never did, and instead of loading the young with debt and useless degrees, is genuinely concerned to give them the chance to make good and live as well as their parents..

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  • mark wadsworth says:

    “is genuinely concerned to give them the chance to make good and live as well as their parents.”

    Which might involve cutting taxes on them a bit, not having a graduate tax and allowing more houses to be built… ah, right. Fail, fail, fail.

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  • Actually MW is right. The conservatives are doing exactly what will appeal to their faithful – zero house building, in effect.

    Ironically what’s happening is that, where local authorities want or need to build houses, they are having to justify it over and above the NIMBYs who inevitably complain. That causes yet more local authority spend. Yet again, an irony of this government.

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