The government is overlooking the critical issue of the increasingly high construction costs in the market, says Daniel Austin, chief executive and co-founder of ASK Partners.
The new Labour government has allocated £5bn to new homes, while it looks to be making the 95% LTV mortgage guarantee scheme permanent under the name Freedom to Buy.
But Daniel Austin, CEO and co-founder at ASK Partners, said: “A critical issue remains overlooked: the cripplingly high construction costs that severely limit the number of projects that can be completed.
“While the planning process also garners attention, there appears to be little consideration of how to support the housebuilding industry through these financial pressures.
“If construction projects continue to stall due to steep costs and an imbalance between delivery expenses and expected sales, land will increasingly lose its appeal for builders and investors, further exacerbating the housing crisis.”
Austin called for “targeted financial support” for the housing sector, which would make it more viable for small developers in the market.
