How realistic is Labour’s homebuilding target?
November 29, 2024
Back in July we looked at what the new Labour government could mean for the construction industry and for companies with construction equipment for sale, like Molson. One of the headlines of the new administration’s plans was a target to build 1.5million new homes by the end of this parliament.
However, that parliament lasts for just five short years, and the clock is already ticking. So just how realistic is this target and what is being done towards making it possible?
Is it possible?
While the construction industry broadly welcomed the proposals, the feasibility of the plans has been called into question by many commentators, with BBC News asking whether the target can actually be delivered.
A survey published by the Construction Equipment Association found that 72% of respondents believe that 1.5million new homes are unachievable in such a short time. Housing journalist, Peter Bill was even more blunt, describing it as a ‘foolish promise’. Clearly it ios going to take a concerted effort by the construction industry, backed by suppliers like Molson, to make the plans a reality.
Planning reforms
At the heart of the Government plans is a root and branch reform of the planning system. This is aimed at removing what the Home Builders Federation describe as ‘the increasing complexities, red tape, regulatory costs, and delays in the planning process’.
Deputy Prime Minister, Angela Rayner says that the planning reforms were “a significant step to getting Britain building again.” Neil Jefferson, CEO of the Home Builders Federation agreed, describing the moves as “the first and most important step ministers have taken in addressing the barriers to delivering new homes.”
However, the Building Cost Information Service (BCIS) said that while the proposed planning reforms were welcome, ‘leading figures within the sector remain sceptical on the lack of detail regarding how it will be achieved.’ Their report concluded that ‘it seems unlikely that reforming the planning system will be enough for Labour to fulfil its ambition to build 1.5 million homes.’
How can Molson help?
Many experts believe that it is market forces, rather than planning problems, that are holding homebuilding back. Barratt Developments latest results report summed this up, stating that housing demand was being significantly reduced by ‘cost-of-living pressures, much higher mortgage rates and limited consumer confidence.’
Here is where Molson can help the homebuilding sector to move forward. Molson aims to support the industry at every stage, making it more affordable to build new homes. We are committed to helping Britain to tackle what the Government describes as ‘the most acute housing crisis in living memory’, with an extensive range of high-quality construction equipment for sale.
As Molson Group Construction Director, Stuart Butler, explains: “Molson has extensive experience working with construction companies large and small,” he says. “We understand the fine margins our customers have to work with when creating developments, especially when those developments are obliged to provide affordable homes where the margins are even tighter.
“That’s why Molson works hard to provide flexible, affordable finance on all our new and used construction equipment for sale. We want to help customers to balance their books so that they can align their goals with those of the Government, without having to compromise on their fleet to cut costs.
“The sweeping changes to the planning framework represent an unparalleled opportunity for the construction sector. In partnership with Molson, customers can make the most of these opportunities, creating both the required growth in homebuilding and sustainable growth in their turnover and profits.”
To find out more about Molson flexible finance on all our construction equipment for sale, get in touch with your local sales manager today, or complete our contact form online. Together we can bring that 1.5million target within reach by building the homes that Britain so desperately needs.
