Summary of industry reaction to the Government’s new Housing Strategy, published today.

The RIBA “welcomes the boost that the Government’s housing strategy, launched today, will give to the construction of badly needed new homes, and also the invitation to collaborate on a Ministerial-led design summit. The RIBA supports the aims of Laying the Foundations: A Housing Strategy for England to get the housing market moving again with measures to increase the number of people taking up mortgages on new-build properties; freeing up additional public sector land; and finance for stalled schemes. A central plank of the strategy is a focus on the quality of new-build homes and an acknowledgement that design, sustainability and quality are as important as quantity to deliver homes for communities.”

RIBA chief executive Harry Rich said “We have been pressing hard for more homes to be built in the UK and for these to be of high design quality. I am delighted that the government has listened and has given such prominence to design quality and the role of architects in driving good design within their communities and in delivering housing fit for the 21st century. In helping the delivery of more homes through public money, lessons from Kickstart must be used to ensure that the right types of homes and of the right quality are provided to last for future generations. Recent RIBA research has shown that many newly completed homes are failing to meet people’s needs – research that is used by the Government in its assessment of the current state of UK housing.”

The Home Builders Federation (NBF) – which had proposed the assistance with mortgages for first time buyers to government – said that the mortgage indemnity scheme announced today “will finally provide some good news for hard pressed young people looking to get on to the housing ladder or those looking to move up to a larger home.” The scheme will allow larger mortgage lenders to offer 95% loans on new build homes, reducing the deposits people have to save. Recent years have seen lenders requiring large deposits of 20-25%. “The scheme will also benefit existing home owners who cannot move because they have limited equity and can only afford a 5% deposit to trade up to a new, larger home,” says the HBF. “The lack of mortgage availability is also the major short term constraint on house building, which has seen output fall to the lowest levels since the early 1920s. Returning to a sustainable mortgage market and allowing more people to buy a home will allow builders to get back to work and build the homes the country desperately needs.”

The Royal Institute of Chartered Surveyors said “RICS welcomes the Government’s Housing Strategy and hopes that the proposals can go some way to boosting the stagnant housing market… Better access to mortgage finance is essential to bring forward the new homes needed to help more achieve their aspiration of home ownership, particularly first-time buyers. The New Build Indemnity Scheme is to be welcomed but care must be taken to ensure it does not distort the market or lenders affordability calculations. The focus on new build will not free up chains and may reduce demand for second hand property, putting those who wish to move but have little equity at a disadvantage. Whilst any attempt to stimulate supply and demand will help both consumers and developers, limiting funding to niche areas of the market in this way does not solve the wider need for adequate levels of funding in all parts of the market.”

“Further steps to free up public land for developers are encouraging but care must be taken that the land is in the right place with the right infrastructure. Projects must be properly analysed for viability otherwise developers run the risk of creating ‘white elephants’ that do not satisfy demand.”

“Whilst a renewed focus bringing investment into the private rented sector is encouraging, an opportunity has been missed to begin delivering real consumer protection and professionalism right across this rapidly growing sector… This is a good start from the Government but more detail is needed.”

Noble Francis, economics director at the Construction Products Association, said “The mortgage indemnity scheme is certainly the main highlight of today’s housing strategy. However other key announcements, including the £400 million Get Britain Building pot for stalled building sites, lack detail as it is unclear where this funding will be coming from and how it will be implemented. The proposals surrounding the Right to Buy scheme are interesting but unfortunately are not likely to have an impact in the short to medium term as the government has made clear its intention to consult before moving forward. At present government itself estimates that more than 260,000 households will be created each year over the next two decades yet housing supply remains at less than half this figure. Although the measures announced today are a welcome attempt at addressing the failing housing market, much more needs to be done.”

The British Property Federation welcomed the new housing strategy, but warned there must be “no delay or timidity in its execution with both house building and the wider economy at crisis point”. Director of policy Ian Fletcher said it was a “welcome first step towards a coherent and long-term vision for house building in this country and it is good to see the government recognise the importance of encouraging investment in to the private rented sector, something that will be vital if we are going to see the necessary number of homes built to meet demand.”

We would urge the government to press on with this quickly. The strategy is welcome but it comes not a moment too soon with house building at historical lows and the general economy in dire need of support. In practice this means bringing forward sites for build-to-let by next April, at the latest, and conducting a swift independent review by somebody with intimate knowledge of the sector. Likewise, we would urge government to get its ideas on converting empty offices in to new homes by next spring.”