"Implementing tax incentives for businesses that hire apprentices would help boost the workforce’s capacity to construct the targeted 1.5 million homes."
- Lawrence Turner - Boyer
In the lead-up to this week’s Budget, the housing market remains an important driver of growth for the UK economy. With many awaiting the Budget announcements, there are several critical issues that demand the Government's urgent attention to ensure a stable and thriving housing market.
In recent weeks, the Government has made headlines with its announcement of a £500 million housing package as part of the Affordable Homes Programme, aimed at delivering up to 5,000 new affordable social homes. This initiative reflects a much-needed commitment to increasing social housing by introducing measures to reduce Right to Buy discounts; and allowing councils to retain 100% of receipts generated from these sales to reinvest in social housing.
Furthermore, the Government has pledged £47 million to local authorities to, "Tackle pollution in our rivers, which has halted housebuilding in highly polluted areas." This funding is projected by the Government to facilitate the delivery of around 28,000 homes.
Despite these announcements, there remains a pressing need for a range of Budget initiatives to drive greater housing growth. Most pressing is the need for greater investment in local planning authorities. LPAs have been grappling with decreased resources and expertise since the austerity years, resulting in sluggish decision-making and protracted negotiations over Section 106 legal agreements. These bottlenecks continue to significantly delay new housing development - development that is crucial for meeting the Government's target of 1.5 million homes in its first term.
Addressing the construction industry's persistent skills shortage is equally important to ensuring the Government's housing targets are achievable in practice, not just on paper. Increased investment in training and apprenticeships will be vital in increasing the capacity of the industry. Implementing tax incentives for businesses that hire apprentices would help boost the workforce’s capacity to construct the targeted 1.5 million homes.
Investment in Build to Rent developments is another area where support from the Budget would bring significant benefits. Enhancing BTR initiatives, as part of the Government's brownfield passport scheme, would help diversify the rental market, providing greater opportunities and choices for renters.
We would also welcome Budget measures aimed at accelerating devolution to grant mayoral authorities increased powers to plan and deliver infrastructure and housing development. Local politics is often overlooked but is very important to unlock housing delivery.
Empowering local leaders to work collaboratively to plan and build the homes their districts need is often the most challenging element and fundamental to creating vibrant, sustainable new communities.
