by Kieran Quinn
Many of us have direct experience of friends and family that aspire to own their own home but fail at the first hurdle due to the spiraling cost.
According to the latest census information, meeting housing demand will require the building of 245,000 new homes each year. This is 145,000 more than is currently being built per year. House building levels are now only slowly rising from the lowest level of activity since the 1920s.
This housing shortage has led to a massive increase in the price of housing, excluding many young first time buyers from getting their first foot on the property ladders
In 1997 it took an average family 3 years to save up for a proper deposit on a home, today this can take 22 years. Ed Miliband announced plans that go someway towards addressing this. The pledge to commit the Labour Party to increase the level of house building in the UK to 200,000 homes per year is a welcome step.
A key part of stimulating new house building will be to unlock capacity in small house builders.
25 years ago 2/3 of new homes were built by small builders, this has fallen to less than 1/3 today. The number of firms building between 1-500 units has also fallen from 12,000 to less than 3,000 over the same period. Labour’s “Help to Build” scheme will attempt to address this through improving access to finance by guaranteeing a proportion of bank loans to small house builders.
