The supply side of Britain’s housing crisis | KPMG | UK

Announcements signal shift to tackle the supply side of Britain’s housing crisis

The supply side of Britain’s housing crisis

Jan Crosby, UK Head of Housing at KPMG, said: Finally the Government is shifting the emphasis from inflationary demand-side policies to supply.

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Commenting ahead of the publication of the new National Planning Policy Framework, Jan Crosby, UK Head of Housing at KPMG, said:

“Finally the Government is shifting the emphasis from inflationary demand-side policies to supply. As ever though, the devil will be in the detail. The last time a new planning framework was produced new housing slowed as developers and councillors digested what the guidance meant. To avoid this as much clarity will be needed as soon as possible on the proposals to avoid a short term stalling of supply.

“Shifting emphasis on public land towards key worker accommodation makes sense and we believe that there are innovative funding solutions to deliver discounted rental housing alongside housing for sale. In an open market competition, the buyer of the land will focus on the houses likely to sell at the highest profit in order to support paying the required land price. If public land is to deliver key worker housing it must de-couple from the traditional land market - perhaps through selling it with restrictions or indeed employer nomination guarantees.

“Facilitating density and apartments is understandable for city locations but for those of us who remember the density driven planning guidance in PPG3, there will be caution that it does not encourage developers to build product that is not sustainable - particularly to the extent a down cycle occurs. It was secondary city centre apartments that caused a lot of the difficulties for banks during the last downturn.”

                                                              -ENDS-

Notes to editor:

  • You can find out more on KPMG’s Reimagine Places: Employer-backed Build to Rent: here

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