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October 18, 2017

Why the Prime Minister must start small to build more homes

The Prime Minister’s comments that for too long the UK has simply not built enough homes will ring true for many in the property industry.

Inviting the largest developers, housing associations, and local authorities to Number 10 to set out the industry’s challenge to increase output shows determination on her part, but Theresa May must go further to ensure that the root cause of the housing shortage is addressed.

For as long as we have had an undersupply of homes, we’ve seen the sustained decline of SME builders and investors in the sector. The market is crying out for competition, yet numerous barriers remain for new entrants, including access to finance, land and skills.

By taking a hands-on approach to fixing the broken housing market, the opportunity exists for the Prime Minister to provide the political leadership that has lacked in the past to open up the market to small-scale property entrepreneurs.

“We will diversify the housing market, opening it up to smaller builders and those who embrace innovative and efficient methods.”
 Rt Hon Theresay May MP, Housing White Paper, February 2017
The Prime Minister’s first steps are encouraging, but we must see her engage directly with SMEs and their champions alongside the development giants and trade associations. Only then will she be able to deliver on her promise to open up the market to new entrants.

LendInvest recently hosted a roundtable with Prospect, the monthly political journal on this subject. Read more. Read our report: Starting Small to Build More Homes.