Government house building target nine years adrift

The National Housing Federation (NHF), a body which represents 1,300 not-for-profit housing associations in England, has warned the Government that it will miss its 2020 house building target by up to nine years, unless further measures to support the country’s ailing property market are introduced.

According to the NHF, failure to act could mean only around 1.6 million new homes will be completed during the next twelve years, well below the Government’s target of three million.

The Federation’s chief executive, David Orr, believes that with the credit crunch worsening and house builders suffering as a result, it is time to recognise that the target for 2020 is now almost impossible.

Private developers have traditionally built around 75% of new homes but sales have plummeted and new projects have been mothballed.

In 2007, 167,577 new homes were completed and estimates for 2008 are as low as 100,000.

According to Mr Orr, housing associations can help boost the level of new homes with Government support.

Last year, housing associations in England built 30,677 homes but the figure could be increased to 70,000 a year by 2011.

However, it is difficult to raise private finance for social housing projects and Mr Orr is therefore calling on the Government to increase the grant available for new housing association homes.

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