“Prime Minister, your government’s current and proposed policies are devastating our industry” said 200 SME housebuilders in the letter
Led by the Home Builders Federation, the letter to prime minister Rishi Sunak is signed by 200 SMEs.
It follows a HBF survey that found that 92% of SMEs are unhappy with the government’s approach to housing, and highlights the “existential threat to the survival of businesses posed by the increasingly anti-development policy environment.”
Saying that it is has “never been more difficult to be an SME developer than it has at the present time”, the letter warns that 78% of SME firms are considering scaling back residential construction projects, which will undoubtedly worsen the shortage of affordable housing in the UK.
Other issues identified in the SME letter to the prime minister include:
Rampant inflation, supply chain issues and the challenging economic environment are driving up costs
New taxes, regulations and policies are adding roughly £20,000 to the cost of building a single new home
A multitude of planning related issues- under-resourced local authorities struggling to process applications; the removal of mandatory housing targets and weakening of the Five-Year Land Supply Requirement, has now seen 58 local authorities withdraw or pause their Local Housing Plans
An estimated 180,000 homes are in limbo after unresolved interventions from government quango Natural England
The letter to Sunak said: “SME developers remain committed to addressing the country’s housing crisis and to increasing home ownership, but we cannot do it without a change of direction and policy from the government.
“Prime Minister, your government’s current and proposed policies are devastating our industry. It is not too late to turn things around. Please help us before even more damage is done.”
The HBF said there are 85% fewer SMEs than a generation ago
Speaking in Westminster, Stewart Baseley, executive chairman of the Home Builders Federation said: “SMEs are the lifeblood of all industries, but in house building we are seeing them being driven out by an increasingly anti-development, antibusiness policy environment. The planning process is grinding to a halt and regulatory costs are rocketing, whilst the nutrient issue has put the brakes on sites across a quarter of the country.
“The impact of this policy approach is devastating for SMEs, and businesses unable to operate or generate an income are laying off staff, or increasingly closing their doors. We are urging Government to act now so that the businesses that remain have a chance of survival.”
You can read the letter in full here.
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