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Cameron Failing to Answer Shortage in Homebuilding

Government must lift borrowing cap to deliver homes – FMB

In a damning assessment of government policy, the Federation of Master Builders (FMB) has backed the Local Government Association (LGA) in declaring that it was right to be calling on the government to lift the borrowing cap to allow councils to build more new homes.

Responding to the publication of the LGA’s report – Investing in our nation’s future: The first 100 days of the next government – Brian Berry, Chief Executive, FMB, said:“There is a desperate need to build more homes if we are to sustain the economic recovery. It’s very encouraging that the LGA is prioritising housing as an issue in their new report.”

Mr Berry argued that the FMB had long argued that central government should lift the Housing Revenue Account borrowing cap to allow councils to build more new homes. He stated that the FMB was also supportive of financing options such as the ‘build now, pay later’ deferred payment model.

“However, I’m sceptical about the emphasis local authorities place on unimplemented planning permissions because when permission is granted, builders have every incentive to build,” Mr Berry said. “Local authorities have a central role to play in enabling the building of more new homes, and where there is a genuine commitment to increasing supply and engage with local house builders, together we can go a long way to meeting the ever increasing demand for new housing.”

Caption            There are too few new build council homes like these ones in Salford, because of government restrictions on spending and the cap must be lifted, argues the FMB.

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