Tag Archives: council houses

Why house builders will never build enough new homes

Why we need to start building council houses again.

It is not in house builder’s interests to build the 200,000 new homes required each year.  Not only would it use up their five-year landbank supply, it would also mean new house prices would fall as would house builder’s profits.  So house builders voluntarily building more homes for motives other than increasing their profits is about as likely as a turkey looking forward to Christmas!

It is also a fact that house builders do not have sufficient skilled labour and the necessary management skills to build a combined 200,000 every year, year in, and year out.  So if, as has been the case for the last 25 years, house builders continue to drip-feed new homes on to the market what is the solution?

Council house 3

Let’s start building decent council houses for decent people.

The answer lies in a return of publicly funded council house building on a national scale. Not with Housing Associations building more social housing just for those on benefits, but by allowing councils to use their cash surpluses, currently earning little if any interest, to build council houses on their own land. It worked well in the fifties and sixties; millions of council homes were built to replace so-called slum housing. But they were not classed as ‘social’ housing – in fact they were quite the opposite. They were homes for everyone – especially for workers on middle incomes. Getting a council house was based on how long people had been on the waiting list. There was no rationing and no stigma. They were new homes on estates with genuinely mixed communities. Good, well designed quality new homes with decent sized gardens for working families. Homes where people would want to live for most of their lives. But this golden age came to an end with the advent of Right to Buy and Housing Acts in the 1980’s which prescribed who could access social housing and who could not.

So now is the time to start building council houses again

Houses built since 1950A council house building programme could be partly funded with a surcharge of say £1,000 for every new home sold by every UK house builder.  The likes of Barratt, Persimmon and Taylor Wimpey would pay in around £37 million a year between them.  They could hardly complain given that the taxpayer-funded subsidy Help To Buy has increased their profits by over 50% and more during the last twelve months. This would not increase the price of new homes as builders always price  to the maximum the market can stand anyway,  price too high and they won’t sell!

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