 The government has come under fire from various sources who all question both the practicality and the effectiveness of the pledge to build three million new homes by 2020.
Gordon Brown announced the plan back in July of 2007 in an attempt to reduce the lack of affordable housing. Greater London and the South East is thought to be at most risk of falling behind in housing because of the number of people who settle there because of the economic opportunities.
Brown highlighted the vital importance of new housing at the time: "Putting affordable housing within the reach not just of the few but the many is vital both to meeting individual aspirations and to securing a better future for the country" Brown said.
More homes needed, say critics
The plan has come under much scrutiny though, with a number of reports claiming that the figures being proposed do not adequately account for the net population growth. A leaked report from the Town and Country Planning Association (TCPA) indicated that there would be a shortfall of nearly 750,000 homes because of the downturn in the property sector during the credit-crunch.
“The worrying implication of this report and its picture of a burgeoning older population is the spectre of rising overcrowding, homelessness and social exclusion. Even when credit conditions improve and mortgages again become available the current under-supply of additional homes, will quickly risk a return to spiralling prices.” Said Gideon Amos from the TCPA.
The TCPA report estimate that 3.5 million homes are needed and that Brown had based his projections on the 2004 statistics, which don't take into account the full potential for population growth.
The proposals have some under fire once again this week from shadow housing minister Grant Shapps, who described the plan as a “con” and called for a rethink of policy. According to new figures from the Department of Communities and Local Government, only 126,000 new homes have been built in the last year, which is a decline over 26% from the previous year.
Shapps accused the government of seeking headlines rather than seriously addressing the housing needs of the nation.
“Brown’s pledge to build 3 million homes is crumbling around him. Even his own housing minister has made admitted that the Prime Minister’s target is completely unachievable. It’s time for the Prime Minister to come clean and admit that his housing target is a complete con," said Shapps.
Shapps also highlighted a number of other areas where he felt government policy was adversely affecting the housing market including taxes and Home Information Packs.
“Labour could kick-start the market by axing stamp duty for first-time buyers on properties up to £250,000 and help nine out of 10 first-time buyers," he added.
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