In last month’s column I discussed the concept of the nation being ‘on-hold’ as it awaited the outcome of the general election. If indeed this was the case, at the time of writing at least, it remains so with details of the Conservative and Lib Dem coalition and its effects on housing policy still to be formally announced. To a certain extent we remain in the dark about how exactly our country is to be run.
The first likely casualty of any new housing policy is HIPs. This will however, have little impact on new build developers as energy performance certificates, required by EU directives, set to remain. Designed to highlight the energy efficiency credentials of a property as well as any potential cash savings, this is good news for developers who are already emphasising a new development’s green credentials. Anyone comparing the energy efficiency of a brand new property with one more than 20 years old will find an enormous and undisputable advantage with the new property.
"While some consumers may wait for policy announcements before making their own big decisions, such as buying a new home, this is a luxury unaffordable to those in charge of key policy decisions that shape the nation."
While some consumers may wait for policy announcements before making their own big decisions, such as buying a new home, this is a luxury unaffordable to those in charge of key policy decisions that shape the nation.
While no major legislative changes can be expected imminently, what is of concern is the extent to which a period of sluggishness, as the coalition finds its feet, might impede on progress in key areas still being shaped by the global financial downturn. From a housing point of view, the central issues of new home supply and the affordability and availability of mortgages are among those that need constant monitoring.
The steady pressure on lenders over the past two years, both political and otherwise, to improve mortgage rates and increase lending has been fundamental to the small amount of progress made in this area and the new coalition government will have to move quickly to convince the homebuying public they are not being left to fend for themselves. This is a simple factor that transcends boundaries between the Liberal-Conservative pact. Economic stability is a top priority for everyone, and continued low mortgage approvals are at the heart of all warnings over a possible ‘double-dip’ recession this year.
While the issue of mortgage lending may unite the parties, the outlook for housing supply would appear more complicated. Despite all parties acknowledging the need for an increase in the number of new home starts, none of the proposals set out in their manifestos inspired confidence in their ability to deliver. It is even harder to foresee how these various, and often conflicting, proposals will come together under a coalition government.
In the run up to the election smartnewhomes.com launched an online poll to gauge consumer opinion on the housing industry. Two thirds of the respondents agreed there was a new homes shortage in the UK but less than half expected any incoming government to even treat housing as a priority. Housing is an emotive issue that divides opinion and permeates through the whole of society. It could, and should, have played a major role in the decision making of many voters but these results reveal how far down the agenda it actually featured in the Leaders debates.
The smartnewhomes.com pre-election poll also targeted UK developers for their views on new home supply. The industry was in unanimous agreement that the bureaucratic planning system was the major stumbling block. However, consumer results revealed the fundamental flaw in Conservative plans to hand responsibility for planning decisions to local communities.
As I mentioned in a previous column it is one thing for people to acknowledge the need for new homes, but another for them to except building in their backyard, a fact enforced by the less than 50% of respondents who would support development in their local area. We are entering a new era of politics, let’s hope this also translates into a new era of understanding for the need for new homes from government and the public.
See Also: Big Smart Blog (11), New Homes Market (28), Press Releases (371), Property News (6711)
Date Published: 17 May 2010
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