Decisive action needed on housing, says KPMG
OFFICIAL figures show that just 910 new homes were started in the West Midlands in the three months to September.
Despite the Government saying housebuilding is a priority, that is an increase of just ten on the previous quarter and completions fell from 1,000 to 930 over the same period.
Andy Argyle, partner at accountancy and advisory firm KPMG in the Midlands, said: “Such a decrease is very concerning, especially when both starts and completions show a significant drop from the first quarter of this year.
“What we don’t want to see is this trend continuing when the need for homes in our region is only getting more pressing. Nationally, annual house building starts totalled 137,490 to September 2015 when we know we need to build 250,000 homes a year to keep up with demand.
Argyle admits that recent Government announcements, such as releasing brownfield land and relaxing planning laws will take time to make a difference to the numbers, but with those numbers so low, now is a perfect time to ask whether supply-side reforms have gone far enough, he suggests.
“There is a real opportunity for the Government to encourage different delivery models such as SME developers and builders, as well as considering innovative funding methods, further land reform and enhanced local powers,” he said.
“And with the Comprehensive Spending Review this week, both the housing sector and the public will no doubt be hoping more will be done, and not just for those aiming to buy.
“At least in the West Midlands the past week has seen a chink of hope – with the confirmation of the devolution deal, we will see planning powers conferred onto an elected mayor, designed to drive housing delivery and improvements in existing housing stock. If the housing sector in the West Midlands can work together to support these powers, they should make a real difference to our level of supply.
“Ahead of Wednesday, I would urge the Government to take a more holistic view of the housing market – we must build the homes that the people of this region and this country need, and that will take much more commitment, thought and strategy if we are to fix this continuing crisis.”
