The UK’s largest builder group, the Federation of Master Builders (FMB) has warned that government cuts to social housing will severely exacerbate the current housing crisis.
FMB director-general Richard Diment said the spending review announcement of social housing being cut to 150,000 homes over four years was a big blow to housebuilders who had suffered the worst recession in decades.
The FMB cast doubt on the effectiveness of the £1m investment in the green investment bank for householders wanting to make their homes greener.
“It remains to be seen if the bank will attract the additional funding that will be needed to retrofit the UK’s 26 million existing homes,” it said.
But it welcomed a boost for apprenticeships.
The Construction Products Association (CPA) said it hoped there would be a recovery in confidence in the private sector now the uncertainty surrounding the comprehensive spending review was over.
The CPA said it was relieved that cuts were £3.5bn less than had been expected. But public sector investment in construction would still be more than £20bn less than in the last four years, it added, which would have significant consequences for the construction industry.
“Where we urgently need greater clarity, however, is the mechanism to encourage investment in private housing and this will not happen until we have agreement over the New Homes Bonus incentive and reforms to the planning system.”
