Clearview National May 2015 - Issue 162 | Page 19

ELECTION2015 The housing manifestos As the general election campaign draws to a climax, the main political parties vying for power have released their manifestos. The House Builders Association (HBA) has commented on the policies that the three major parties proposed with regard to housing and house building. Conservative Party The highest profile announcement in the Conservative manifesto was the extension of the Right to Buy scheme. This would allow residents to purchase their rented accommodation at a discounted price, and extra investment to build up to 400,000 new homes on brownfield land. While the HBA wholeheartedly supports any attempt to increase the housing stock, it is concerned that the extension of Right to Buy will place undue pressure on those stakeholders that provide affordable rents and homes. The HBA also has reservations on whether brownfield land will be viable, especially when infrastructure needs are considered and without any direct mention of SME house builders. Rico Wojtulewicz, policy advisor for the HBA, said: “Our concern is that this manifesto may not remedy the current situation where SMEs may find a foothold but little long-term security.” SME house builders are, therefore, still unsure how the Conservatives will encourage SMEs to tackle the housing crisis. The number of SME house builders is directly proportional to the amount of housing completions, something which we hope the Conservatives keep in mind when the specifics about these policies are set out. Labour Party The Labour manifesto acknowledges the important role of SMEs in house building, which the HBA welcomes. A future Labour government would also ensure that at least 200,000 homes are built each year by 2020 to meet the pressing demand for housing. HBA members are not surprised that the reduction in access to finance and support has resulted in the lowest levels of housing completion for over nine decades. Promises, however, need a practical plan of action to be properly implemented, based on planning support for community-led developments; encouraging SME interaction in infrastructure-ready regions, and support of expanding communities through SME community infrastructure levy. Most crucially, local authorities must be given more discretion on creatively reinvesting in social housing. With the intention of tackling supply concerns, Labour promised to use the Help to Buy ISA to finance a Future Homes Fund to increase lending. The Lyons Housing Review was used as a key point of reference, leading us to assume that Labour will be following these recommendations quite closely.Rico Wojtulewicz said: “The HBA is sceptical about the willingness of banks to lend to construction SMEs and Labour’s ability to convince them.” ‘Our concern is that this manifesto may not remedy the current situation’ Liberal Democrats The Liberal Democrats have presented the most detailed manifesto on housing, compared to the other major parties. The HBA did however spot some warning signs for SME housebuilders. Despite a welcome emphasis on more housing and pledging to build 300,000 homes a year by 2020, other pledges such as the removal of exemptions for zero carbon homes are quite problematic, especially because the existing zero carbon homes policy has helped SMEs to operate alongside larger house builders. The HBA welcomes the strong recognition of funding need, addressed through the proposed Housing Investment Bank, and the push to build more heavily on brownfield land. Unfortunately, the Liberal Democrat manifesto remains contradictory in its message to SME housebuilders by promising greater government support, while simultaneouslyreaffirming largescale development projects. Focusing on the construction of more garden cities and renewed emphasis on energy efficiency will end up favouring large house builders, often at the expense of SMEs. Even though the Liberal Democrats may not repeat the electoral performance of 2010, the HBA believes that, during their time in government, they listened genuinely to the construction industry and have the willingness to support a housing policy that works for Britain. C L E A RV I E W-U K . C O M » M AY 2015 » 19