Government accused of sabotaging its own housebuilding targets

Latest News Wed, Jul 24, 2019 4:07 PM

An influential committee of MPs has concluded the UK will miss its housebuilding target by a "wide margin".

The Public Accounts Committee has accused the Government of effectively sabotaging its own programme and wasting a one-in-a-lifetime opportunity.

The committee claimed the Government is in fact prolonging the national housing crisis by failing to sell enough land for affordable and social housing.

The government said it had delivered 222,000 new homes last year and is working closely with stakeholders to accelerate housebuilding schemes.

Yet the committee has calculated the government's land sale failure would result in 91,000 fewer homes in 2020 than anticipated, equivalent to 57% of its overall target.

"The UK needs more houses," said committee chair Meg Hillier. "As a major land holder, the government is in a unique position to release land for new homes; and yet the objectives of its land disposal programmes are chaotic and confused.

"We are baffled that the programmes were not designed with a view to how many homes were needed of what type, and where - nor how the proceeds will be used."

The plan to release land was stymied from the beginning by muddled thinking and unrealistic targets, the committee said. "This failure is largely because of the unrealistic targets the centre of government imposed on departments without enough thought about the issues that would need to be overcome to make sales happen."

Targets were set from the top down, and were "not supported by any evidence on what could realistically be delivered", the committee said.

In addition, the government did not look at what type of houses were needed, and where, in deciding whether to sell land, it said.

Instead, it looked at what surplus land it had, and whether it could be sold, the committee said.

The government department responsible for housing, the Ministry of Housing, Communities and Local Government, has not counted the number of houses built on the land being sold, including affordable and social housing, arguing that local authorities are responsible for this.

But it is "unacceptable" that the department "pays so little attention to how the release of public land could be used to deliver affordable homes including social homes for rent," the committee said.

The government is expected to meet a second target of raising £5bn from land sales, but this is mainly down to luck, the committee concludes.

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