3 Million Homes Build Plan Can’t Stop Housing Crisis
A new report suggests that, even taking into account Prime Minister Gordon Brown’s pledge to construct an additional 3M new houses by 2020, England is still destined for a crisis. The independent organisation established to provide ministers with advice on new-builds – the National Housing and Planning Advice Unit - stated that 270,000 a year more will be needed – adding that average house prices now stood at over seven times the average wage. By 2026, it predicted, the gap will have expanded further to a ratio of 1: 9.5. Even if an additional 270,000 homes could be built, said the unit – they would still not be as affordable.
The report was prepared by experts including Professor Stephen Nickell. Speaking to the BBC, Prof. Nickell emphasised how “...most other countries in the developed world, proportionately speaking, build houses at a faster rate than we do."
Government Encourages News Home Builds by Funding Local Councils
The release of the report on the 26th October coincided with the announcement made by Yvette Cooper, the UK Housing Minister, that funding would be provided to local councils to encourage the construction of new housing.
Describing how certain councils were proving to be problematic, Ms Cooper said: “Some of them say they don't want more homes in their area”, adding:”...the problem with that argument is that it's just not fair - every other area needs to do its bit."
The proposals have come under fire from the Campaign for the Protection of Rural England (CPRE), a spokeswoman from which described the “...horrendous consequences in terms of environment, landscape and also quality of life – traffic congestion, pollution and the like”. Kate Gordon, a Senior Planner, added: "There are also issues like access to water supply for these homes and the likelihood of them being built in flood-risk areas."
Ms Cooper detailed how an incentive of £1,100/home would be provided to councils with the most extensive programmes for new house construction – a figure that could grow to £5,000 by 2011. She emphasised, also, how the housing needed to be based on “planned sustainability”.
However, according to the Local Government Association’s Paul Bettison, merely building additional property cannot solve Britain’s housing problems. "For too long we've been pushing the simple figure of more and more houses, without thinking about the infrastructure”, he said.
“It's no good building houses if there's no roads to get to them."
Source – Construction International’s Sub Editor
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