Housing targets constrained by land30 June 2017
For the second consecutive year, CPC hosted a lunch in conjunction with the Chartered Institute of Housing’s annual conference in Manchester, bringing together 55 guests from a variety of housing associations, registered providers, private developers and professional service firms.
A year on from the EU Referendum the nature and outcome of Brexit provides no more certainty for the housing sector with many house builders continuing to suffer from falling share prices. This leads to a reluctance to speculatively build the volume required to meet the Government’s target of a million new homes by the end of 2020.
This said, the mood at the lunch was upbeat and the general message from our guests was:
- We have a target number of new homes to build in the next 4 years
- We have no shortage of funding to finance the build, but
- We have no land!!
In an effort to combat this land shortage ministers will be unveiling new regulations that will force developers to start building within two years of gaining planning. Housing companies will be required to provide information to Local Authorities regarding the time it takes from receiving planning consent to the availability of new homes. The idea is that Local Authorities will award future contracts to those developers who can demonstrate that they build faster than the competition.
CPC's role moving forward is twofold: firstly to secure and deliver housing schemes across the length and breadth of the UK on behalf of our growing client base and, secondly, to bring suitable sites to our housing clients via contractor developers, developers with S106’s and marginal land owned by public sector authorities, to unlock key sites.
CPC's growing presence in this market has seen us expand from delivering prime residential developments to the regeneration of Council Estates. We are also delivering more social and affordable housing schemes, care and extra care homes, and are seeing an increase in demand from our clients to deliver major schemes in the private rented sector.
We are well placed to support our housing clients in delivering their schemes to meet the Governments 2020 target, but the constraint of available land must be urgently overcome.