Spending review may have no real impact on housing delivery

Commenting on the housing plans outlined in the Chancellor’s Autumn Statement today Karl Hick, CEO of development and housebuilding group Larkfleet, said:

“This all sounds like positive news which the housebuilding industry should welcome. But it is very similar to announcements that have been made in the past – worthy sentiments which have had little or no practical effect.

“Unless the government finds ways to get the money to small and medium sized housebuilders there will be no real impact on the delivery of new homes.

“The rules and bureaucracy of previous schemes have proved impossible for smaller firms to penetrate and they have simply not been able to get the money they need to support development.

“The large builders, which can deal with the paperwork, do not need access to government cash as they can borrow on very favourable commercial terms.

“So, in summary, I think the announcements today could prove to be a big waste of time for the industry.  Smaller building firms will either be chasing money that will never actually materialise or just getting on with business as usual. Either way, they will continue delivering at more-or-less the current level.”

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