Shadow housing minister says a Labour government would help the industry to build on a āgrand scaleā
A Labour government would ādoubleā the current rate of housebuilding in a major drive that will involving closer partnerships between councils, volume housebuilders, SMEs and housing associations, the shadow housing minister has said.
Speaking on the fringe of the Labour Party conference this morning, Jack Dromey said councils, working in close partnership with housing associations and housebuilders, will be the ākey engine of deliveryā in Labourās proposed drive to boost housebuilding numbers to 200,000 a year.
Labourās committment to ensure 200,000 homes are built each year by the end of the next parliament, with the party appointing Sir Michael Lyons to a new commission to examine ways to boost housebuilding.
Speaking at event organised by London Councils, the shadow housing minister defended the partyās target of 200,000 new homes a year, below the estimated annual rate of household formation of 230,000 to 240,000.
Responding to a question over whether the target of 200,000 homes a year is enough, Dromey told ŠŌ°ÉµēĢØ that meeting this figure was already a āformidable challengeā.
He added: āWe are talking about at least 200,000ā¦are we going to stop at 200,000? No we are not.ā
He said: āLarge-scale builders will be partners in a major house building programme. We will be demanding partners but there will be a long term certainty [for housebuilders] which doesnāt currently exist.
āWe are talking about a scale of ambition that no government has engaged in for a very long time. Our aim is to double housebuilding.ā
Dromey said there was no āsilver bulletā to tackle what he described as an acute housing crisis, but said bringing SME builders back into the market and expanding self-build and the private rented sector were all part of the solution.
He also backed further institutional investment in housebuilding including the use of council pension schemes plus the creation of ānew towns and garden citiesā.
Speaking at an event hosted jointly by the National Federation of Builders and Federation of Master Builders, Dromey said that despite government rhetoric on opening the supply chain to SMEs, the small builders continued to find themselves excluded from public procurement.
Dromey said two thirds of the homes built used to be by SMEs, but now that had dropped to just one third.
He said a Labour government would support Britainās SMEs to build āon a grand scaleā in the next parliament,
He said Labour would work to āshape and populariseā existing government schemes to boost SME involvement, saying a lack of awareness was often a real issue.
He added that would not ātear upā the governmentās planning reforms, although alterations would be considered.
In his speech to the conference this morning, shadow communities secretary Hilary Benn said the housebuilding push would not involve ātop down targetsā.
He said: āLabour will get Britain building again. Weāre just not building enough homes and yet, in the last few years, the profits of the big housebuilders have soared.
āLand is too expensive. Too often developers hang on to it hoping for the price to rise. And communities feel powerless.
āSo what will a Labour Government do?
āFirst, we must admit that we canāt carry on saying on the one hand āwhere are the homes for the next generation?ā and on the other āplease donāt build them near meā.
āNor will we get more homes by top-down targets. Councils and communities must take that responsibility but they need more power to be able to do so.
āCommunities should know where land is available. Thatās why we will ensure developers register the land they own or have options on.
āAnd where land is not brought forward for homes, communities should be able to do something about it.
āAnd when communities have given planning permission they should be able to say to developers: weāve given you the go ahead so please get on and build the homes you said you would. And if you donāt then weāll charge you and, if you still donāt, weāll sell the land on to someone else who will.
āSecondly, there are areas in the country where councils and communities see the need for more homes but there just isnāt the land to build them on.
āSo the next Labour government will give those communities a new āRight to Growā, allowing them - if they want - to expand and ensuring that neighbouring areas work with them to do so.
āThirdly ⦠itās time to build new communities - new towns and new garden cities. Thatās what the great Attlee Government did as they started to rebuild Britain and we need that same spirit again.
āSo we will invite local authorities to come forward, and in return, we will make sure that they get the powers and the incentives they need to acquire land, put in the infrastructure and build. Build those new communities.
āGetting Britain building, with communities taking the lead. People deciding where the new homes will go and what land they want to preserve.ā
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