Budget 2021 housing shortage new homes

Budget 2021 – Reaction from New Homes team

Q4 2021

Strutt & Parker share their insights on the implications of the 2021 Budget for new homes.

Charlotte Moxon

Senior Associate Director

+44 (0) 777 607 0070

Charlotte Moxon, Head of Regional New Homes, Strutt & Parker, comments: “We believe that any new initiative that tackles the housing shortage and stimulates the market and economy is very much welcomed.

“However, it’s important to highlight that developers need to be assisted to bring forward new homes without additional costs and time delays to the process. With labour shortages and recent figures showing that building material costs have surged by 23.5% since August 2020, our concern is it is becoming unprofitable for developers to build much-needed homes. In addition to this, the developers have to consider the affordable housing and Section 106 requirements on site along with CIL payments and upcoming changing to building regulations.

“We believe it’s important to strike the right balance so developers are able to build quality homes rather than just volume poor quality housing, and this approach needs to be supported. The planning process needs to be reformed to allow developers to deliver sites in a timely manner to satisfy the increasing need and demand for housing in many areas across the country. With this in mind we welcome the announcement to invest £65 million to digitise the planning system to make this more efficient.

“As with any announcement on this scale how this is implemented will be key to its success. It is vital that national visions and local plans also align and essential to understand the role that Councils can play working with the Government on new affordable home targets.”