The property market ‘won’t grow’ unless the Government changes tactics, a leading tax and business advisory firm has warned.

Blick Rothenberg described the current housing market as “stagnant” and called for it to be “re-invigorated.”

It claimed the Government’s target of delivering 1.5million new homes in the life of this Parliament is not being delivered.

And it went on to say that construction cost inflation is a key issue for the housing market and is currently running at more than 10%.

The Government can make a contribution to slowing construction cost inflation.”

Construction costs

It suggested that the ability to build a house for a price that buyers can afford – be that first-time buyers or families moving up the chain – is not being addressed.

The Government must contribute towards slowing construction costs – and the housing market won’t grow without this investment, it said.

Heather Powell, a partner at the firm, (pictured) explained: “The Government can make a contribution to slowing construction cost inflation by investing in attracting and then training new workers.

“Attracting school leavers to the industry, and then ensuring that they get the training to enable them to work effectively on sites, and embrace modern methods of construction is something the Government can influence if they work with construction and building companies.”

She added: “The purchase of a home is an expression of confidence from the buyer – and a sign of success in actually accumulating the deposit required, particularly for first-time buyers.

“New homes at a price that are affordable, and mortgage rates that ensure monthly payments are within the budget of individuals and families are critical.”