Anyone renting or attempting to buy a property will be well aware of the UK’s chronic housing shortage. The CBI (a lobbying group representing businesses) knows more about this issue than most. The group suggests that the country needs to double annual house building rates within a decade, stating that the economic drivers to such a target are in place – but politics and regulations are holding back the construction industry from delivering this target.
In the CBI’s report, Housing Britain: Building New Homes For Growth, the organisation outlines the measures that the next government must take to meet this target. First, the group claims that the house building sector lacks the certainty required to invest on a large scale, and that the government must publish a delivery plan to provide this certainty. Second, the report states that there is insufficient land available for developers to build on – this would be solved by reviewing the extent of green belts and creating new garden cities. Third, the planning system needs to become more flexible and pro-growth at a local level, by providing additional financial support for underperforming planning departments. Fourth, SMEs still struggle to obtain finance for new builds. The CBI calls for the government to commit to current forms of support, such as the British Business Bank, and introduce new initiatives to support SME house builders.
The next year will be hugely significant for the construction industry. With the general election mere months away, the major political parties will soon begin to set out their policies for tackling the housing crisis. The result of next year’s general election as yet remains uncertain.
Construction companies that are looking for a solid financial foundation to see them through this uncertain period will benefit from the assistance of software for builders. Integrity Software is specialist construction software that helps you manage your jobs, track your costs and improve contractor management. Contact us to arrange a demo.