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Fixing the ‘broken’ housing market: October updates from Theresa May

Posted by Ian Allan on 06-Oct-2017 14:30:59

At Tuesday’s (4th October) conference Theresa May, Prime Minister led her party through its ambitions over the next four years to elevate her political British Dream. A key focus was on the announcement of Government plans to spend a further £2 billion on a ‘new generation’ of Council houses and affordable homes for rent. But how will this impact the already inflated housing need across Britain?

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Fixing the ‘broken housing market’

It is a cash injection that has been welcomed by Housing Associations and Councils across the UK but criticised by housing charities and other parties. So, what are the facts?

“An additional £2 billion in affordable housing taking the Government’s total affordable housing budget to almost £9 billion.” – Theresa May, 5th October 2017

The supplementary budget that is set aside for Housing Associations and Councils to bid for, will help build new homes for social renting. The Government anticipate that this should unlock a further £3 billion in public and private investment in all types of housing. The £2 billion is said to help create an additional 5,000 homes each year, equating to 25,000 homes - at the estimated equity cost of £80,000. However, this has been contested to not go far enough for the 1.2 million families that are awaiting Council housing.

“We will help over 130,000 families with the deposit they need to buy their own home by investing a further £10 billion in Help to Buy”

After the General Election, Theresa May said that they had listened, learned and understood that the housebuilding initiatives had not gone far enough to reignite home ownership in Britain. A week prior to the party conference, Theresa May announced the plans to pump a further £10 billion into the Help to Buy scheme in order to help more families climb onto the housing ladder.

“To our house builders. We, the Government, will make sure the land is available”

And where are all of these houses going to go? Well, they have reinstated their message put across the Housing White Paper – they will help free up land that is suitable for new homes with a focus of re using brown fields to keep on protecting the green belt.

Reading between the lines

Many have already disputed that the speech didn’t go far enough, or that it didn’t help strengthen the arm of the Conservatives votes for Theresa May (especially when she was handed her P45 from a prankster) but, we think it is a start, and a reinforcing message of future proofing Britain’s housing market that was originally outlined prior to the General Election.

What do you think?

We want to know your thoughts – how do you think it will affect the housing market and new Council builds? Do you feel it does the job?

Key takeaways

  • The Government have stated that the UK housing market is broken with many UK households unable to purchase their own home
  • New plans outline the importance of affordability in places that are in need of it
  • An additional £2 billion plan to help build more Council homes

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Ian Allan

Head of R&D at Switch2