‘Get on and Build, the Deputy Prime Minister urges housebuilders.’ This headline of a government press release issued on 25th May sums up all that is wrong and ridiculous about their approach to new housing. How can they believe that making a cycle of new threats to housebuilders will deliver their cooperation, when it manifestly increases their risks- big time.
My advice to builders is the usual response faced with policies that will be reversed as they are contrary to business sense; even simpler contrary to common sense. As risk takers builders are faced with decisions about large sums of money, with the moment of truth two or four years in the future, what do you do? At every step you seek opportunities to reduce your risk exposure. And wait for the policies to change when a new government is elected in 2029.
With this government desperate to promote economic growth, increasing uncertainty for those whose livelihood is the market is odd, or worse. There is an obvious answer, but one that needs the right question. Why is there a massive housing shortfall?
Housing supply depends on the supply of land with consent to build. This ingredient is in the hands of local authorities. Whose track record since the seventies is failure. It follows as the government wants a big increase in house building they must first remove local councils ability to be blockers and second replace the failure of landowners to provide land with planning consent in locations, scales and time that local communities want with delivery corporations with the ability to do so.
If this obvious step back to reality is beyond this government understanding then it seems their economic growth hopes will also fail. Development corporations who control or own the future building land and also have their own planning powers can deliver the government’s wishes, with local support. There is first a communication message to be delivered. Please wake and smell the coffee. Why keep using the stick?
Ian Campbell
31 May 2025
