CBI urge government to act on UK housing crisis

Business leaders CBI say government must act to tackle the UK housing shortage with incentives, more building and rental sector expansion.

CBI say the government must introduce incentives for older people to move from large houses, expand the rental sector and build more if they are to tackle the UK housing shortage.

A total of ten recommendations were set of by the CBI, to get more people into suitable housing ahead of the publication of a white paper by the Department for Communities and Local Government on tackling the housing crisis.

The employers’ lobby group called for a “step change” in housebuilding, including the creation of more rental homes, if the government is to meet its ambition of a million new homes by 2020.

The group called on Theresa May’s government to set out “a clear and credible plan which is strategic, integrated and joined-up” to help buyers get on to the property ladder and help renters find suitable properties.

“Home ownership will remain an aspiration for many, but is not the only answer. While there is great value in giving those who aspire to buy their own home the opportunity to do so, it is important that government is also encouraging a wide range of new housing tenures to be delivered that will be of benefit for all,” the CBI said.

“Furthermore, the nation’s vote to leave the European Union could serve to reinforce the sense of urgency with which this significant challenge must be met,” the CBI said in its report. The Brexit vote “shone a light on the divisions within our society and left us facing an uncertain economic future” and provided an opportunity to “get Britain building in order to drive economic growth and create a housing market that works for all parts of society and the country”.

Chancellor Philip Hammond last month said there would be a package worth £3Bn, which will be made available to speed up homebuilding by using surplus public land and brownfield sites, and employing builders who can develop properties more traditional firms.

Josh Hardie, Deputy Director General of the CBI said: “If we are going to more than double the number of homes built each year, we need a step-change – not just in delivery, but in mindset. Business as usual isn’t an option.”

Along with the rental sector being highlighted in the report, helping “empty nesters” move into smaller properties or retirement homes.

The government aim to build 250,000 properties a year, however latest data shows the rate of building remains below target.

The CBI recommend freeing up smaller parcels of land to accelerate the process.

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