Government warned not to ditch 300k housing target by leading lender

Fewer new homes will be built if the Government ditches its 300,000 housing target, a major building society warns.

Leeds BS says that if some Tory MPs get their way and the annual figure is dropped, then the housing crisis will get worse.

The warning comes after 47 MPs backed an amendment to the Levelling Up Bill banning any top down targets.

Last year 232,820 new homes were built, leaving the Government well short of the total it wanted.

Martese Carton, Director of Mortgage Distribution, Leeds Building Society

Martese Carton at Leeds Building Society, says: “There is no silver bullet when it comes to solving the UK’s housing crisis, but nationally set housebuilding targets exist for a reason.

“Indeed, The Home Builders Federation previously warned that scrapping the 300,000 targets could lead to 100,000 fewer homes each year. This is unacceptable.”

Soaring prices

Carton adds: “We are facing a chronic shortage of homes resulting in soaring house prices which drive deposit requirements and mortgages ever higher. This means first-time buyers are finding it harder than ever to get on the ladder. Added to this, high interest rates are forcing up the mortgage costs for millions.

“Housing targets help to catalyse supply as well as providing consistency and stability – all things the market desperately needs as we seek to rebalance supply and demand.”

Former Chancellor George Osborne told The Negotiator Conference last week that the target was unachievable unless the Government built 100,000 homes itself.

Housing secretary Michael Gove admitted in the summer that it was unlikely the target would be reached.