Home-building target unlikely to be achieved, says housing body

19 Nov 09
A government target of building 3 million new homes by 2020 is unlikely to be achieved because of the dramatic slowdown in the industry in the past two years, a Joseph Rowntree Foundation study has shown
By Neil Merrick

19 November 2009

A government target of building 3 million new homes by 2020 is unlikely to be achieved because of the dramatic slowdown in the industry in the past two years, a Joseph Rowntree Foundation study has shown.

The number of homes built by housing associations and private firms rose steadily between 2001 and 2007, after previously falling to its lowest level since the First World War. But the trend was halted by the credit crunch and recession.

According to the report, published on November 17, the house building industry is unlikely to recover in time to build 240,000 homes per year in England by 2016, which the government requires to meet its 2020 target.

In 2008/09, starts were made on just 90,430 homes, while 133,710 were completed, down 20% on the previous year. ‘New housing completions are likely to be significantly lower, compared with 2001-2007, for some years to come,’ it said.

While household numbers are projected to increase, registered social landlords are building fewer affordable homes through section 106 planning agreements. ‘In light of the current downturn, it is unlikely that RSLs can continue their building rate when there is less scope to secure contributions through planning gains,’ added Housing and neighbourhoods monitor, based on research by three universities.

Gordon Brown announced the 3 million target soon after becoming prime minister in July 2007. However, former housing minister Margaret Beckett later downplayed its significance by describing it as an ‘ambition’ to a Commons select committee.

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