Tories must stick to housing reforms - Glenigan
12th May 2015

The newly returned Conservative Government will have to continue with the housing reforms mooted by the previous coalition but it will need to develop a wider strategy if it is to solve the current severe shortfall in homes, according to industry analyst Glenigan.

Short term political uncertainties have eased following the pre-election slowdown in construction activity, according to Economics Director Allan Wilén, but the new administration poses both threats and opportunities for the industry:

“Over the next Parliament, the UK faces five years of constitutional change with a promised referendum on the UK’s EU membership by 2017, the prospect of further Scottish devolution and potentially a fresh vote on Scottish independence.

“The economic uncertainty posed by the European Referendum, in particular, is a potential threat to private sector investment over the next two years.”

He continued: “Housing emerged as an important political issue during the election campaign, with need to increase housing supply an area of clear political common ground. Planning reforms made by the Coalition government have enabled more housing permissions to be brought forward, while the Help to Buy scheme has provided much needed support for the housing market. 

“However it is essential that the Conservative administration now builds on these reforms. Their stated aim to provide ‘200,000’ Starter Homes by 2020 would ease some strain on first time buyers, but this will need to be part of a wider strategy to solve the severe shortfall in homes.”