The Westminster government’s target of building 300,000 new homes per year might not be enough to end the housing crisis and meet future demand, peers have warned.
Ministers have targeted building one million new homes before the next general election in 2024. But skills shortages, planning problems and funding failures are impacting building and leaving too many people trapped in unsuitable homes, a report from the House of Lords Built Environment Committee has warned.
The report also called on the government to change its approach to funding by reforming Right to Buy and diverting funding from Help to Buy towards increasing supply.
From just £3 per week
The current Help to Buy scheme will have cost taxpayers £29bn in cash terms by 2023 but peers believe the money would be better spent on building more affordable homes and homes for social rent.
Committee chair Baroness Neville-Rolfe, said: “The government’s ambitious target of 300,000 new homes per year will only be met if government takes action to remove the barriers for housebuilders, particularly for SMEs (small and mid-size enterprises) who 35 years ago built 39 per cent of new homes but now build just 10 per cent.
“Uncertainty and the absence of a clear policy direction has only exacerbated housing problems. Our report provides a package of proposals to help deliver much needed housing and address the critical undersupply of new homes.”