ELECTION2015
The housing manifestos
As the general election campaign draws to a climax, the main political
parties vying for power have released their manifestos. The House Builders
Association (HBA) has commented on the policies that the three major
parties proposed with regard to housing and house building.
Conservative Party
The highest profile announcement in the
Conservative manifesto was the extension
of the Right to Buy scheme. This would
allow residents to purchase their rented
accommodation at a discounted price, and
extra investment to build up to 400,000 new
homes on brownfield land.
While the HBA wholeheartedly supports
any attempt to increase the housing stock,
it is concerned that the extension of Right
to Buy will place undue pressure on those
stakeholders that provide affordable rents
and homes. The HBA also has reservations
on whether brownfield land will be viable,
especially when infrastructure needs are
considered and without any direct mention of
SME house builders.
Rico Wojtulewicz, policy advisor for
the HBA, said: “Our concern is that this
manifesto may not remedy the current
situation where SMEs may find a foothold but
little long-term security.”
SME house builders are, therefore, still
unsure how the Conservatives will encourage
SMEs to tackle the housing crisis.
The number of SME house builders is
directly proportional to the amount of
housing completions, something which we
hope the Conservatives keep in mind when
the specifics about these policies are set out.
Labour Party
The Labour manifesto acknowledges the
important role of SMEs in house building,
which the HBA welcomes. A future Labour
government would also ensure that at least
200,000 homes are built each year by 2020 to
meet the pressing demand for housing.
HBA members are not surprised that the
reduction in access to finance and support
has resulted in the lowest levels of housing
completion for over nine decades.
Promises, however, need a practical plan
of action to be properly implemented, based
on planning support for community-led
developments; encouraging SME interaction
in infrastructure-ready regions, and support
of expanding communities through SME
community infrastructure levy. Most crucially,
local authorities must be given more discretion
on creatively reinvesting in social housing.
With the intention of tackling supply
concerns, Labour promised to use the Help to
Buy ISA to finance a Future Homes Fund to
increase lending. The Lyons Housing Review
was used as a key point of reference, leading
us to assume that Labour will be following
these recommendations quite closely.Rico
Wojtulewicz said: “The HBA is sceptical
about the willingness of banks to lend to
construction SMEs and Labour’s ability to
convince them.”
‘Our concern is that this manifesto may
not remedy the current situation’
Liberal Democrats
The Liberal Democrats have presented the
most detailed manifesto on housing, compared
to the other major parties. The HBA did
however spot some warning signs for SME
housebuilders.
Despite a welcome emphasis on more
housing and pledging to build 300,000 homes
a year by 2020, other pledges such as the
removal of exemptions for zero carbon homes
are quite problematic, especially because the
existing zero carbon homes policy has helped
SMEs to operate alongside larger house
builders.
The HBA welcomes the strong recognition
of funding need, addressed through the
proposed Housing Investment Bank,
and the push to build more heavily on
brownfield land. Unfortunately, the Liberal
Democrat manifesto remains contradictory
in its message to SME housebuilders by
promising greater government support,
while simultaneouslyreaffirming largescale development projects. Focusing on
the construction of more garden cities and
renewed emphasis on energy efficiency will
end up favouring large house builders, often at
the expense of SMEs.
Even though the Liberal Democrats may
not repeat the electoral performance of 2010,
the HBA believes that, during their time in
government, they listened genuinely to the
construction industry and have the willingness
to support a housing policy that works for
Britain.
C L E A RV I E W-U K . C O M » M AY 2015 » 19