Industry leaders bemoan lack of housing support, as Gove threatens firms yet to sign pledge
Jeremy Hunt’s first Spring Budget as Chancellor revealed little in the way of support for housebuilders to ease pressure on an industry struggling with several constraints.
Whilst Hunt announced £960m to support 12 ‘Investment Zones’, and plenty of initiatives for regeneration, there were no measures aimed at alleviating planning issues and helping people onto the housing ladder.
This was highlighted by Stewart Baseley of the Home Builders Federation, who described the Budget as “disappointing”.
It is disappointing there is not more in the Budget to facilitate the delivery of much-needed new homes at a time when all indicators are predicting a fall in output caused by planning policies, the interpretation of EU laws on ‘nutrient neutrality’ and a drop in affordable mortgage availability.
Stewart Baseley, Executive Chairman, Home Builders Federation
The Office of Budget Responsibility (OBR) has downgraded its forecast for house prices, reporting a decline of -10% from their peak in the fourth quarter of last year to a low in the third quarter of 2024.
The forecast, which was produced to support Hunt’s budget, is an increase on the previously predicted -9% fall, and is blamed on the “squeeze on real incomes” and an expectation of further mortgage rate rises.
Meanwhile, Levelling Up Secretary Michael Gove has said that the government will “come after” developers who have not yet signed the remediation contract.
In a statement released the day after the deadline for signing the contract had passed, Gove said that 39 developers had signed the pledge, which commits them to remediating their buildings of more than 11m high.
But he had harsh words for those yet to sign – including Rydon Homes, a sister company of Grenfell contractor Rydon Maintenance, who have indicated that it will challenge the government on this issue.
To those developers that have failed to sign the contract without good reason, let me be very clear – we are coming after you.
michael gove, secretary of state for levelling up, housing and communities
If you do not sign, you will not be able to operate freely in the housing market. Your investors will see that your business model is broken – only responsible developers are welcome here.
Trades with struggling labour levels now able to plug gaps with overseas workers
Bricklayers and plasterers are among a list of key trades which will benefit from relaxed visa rules in an effort to fill gaps in the workforce with overseas labour.
The government has accepted the recommendations of the independent Migration Advisory Committee’s review of the construction industry, and changes will take place before the summer.
The list of trades also includes carpenters, groundworkers and scaffolders.
Meanwhile, timber imports in 2022 were 2.4 million cubic metres lower than 2021, according to trade body Timber Development UK.
Despite this, the average cost price of softwood imports rose by 7% as global demand strengthened.
Demand for timber slowed last year from the dizzying heights of 2021, with high inflation and economic volatility harming consumer confidence in key sectors like retail and RM&I.
Nick Boulton, Head of Technical and Trade, Timber Development UK
Political instability in Q3 also undermined confidence in the housing market and reduced housing starts and timber demand.
Help to Buy legal completion deadline extended again
The government has agreed a two-month extension to the completion date for homes sold under Help to Buy.
Housebuilders will now have until 31 May to reach legal completion of the sale of homes under the scheme.
The decision follows two earlier extensions, which was originally set to 31 December.
The Help to Buy scheme has supported the same of 375,000 homes since its implementation in 2013.
Housing View 