What is holding up the housebuild programme?

In the bustling world of property development, securing enough land for new projects is increasingly difficult. Many promising sites are wrapped up in local government ownership, unavailable due to a whole host of financial constraints.

Local governments are feeling the financial pinch, forced to increase taxes and cut services to the bone while depleting their reserves. Despite these drastic measures, some councils are still pushed to issue Section 114 notices—a severe warning that they can't balance their budgets, leading to mandatory spending freezes on all but the most essential services.

Meanwhile, the government has struggled to effectively allocate its housing budget, even returning ￡1.9 billion meant for housing projects. This creates adds an unnecessary dilemma: councils desperately need more funding, but the government can’t seem to get the money where it needs to go.

The pace of housing development has drastically slowed compared to past decades. Once, councils built over 100,000 homes annually, but recent figures are just a fraction of that. Birmingham City Council, despite grappling with significant financial challenges, leads with 185 new homes—still a drop in the bucket given the immense demand.

Public/private partnerships appear as a beacon of hope. These collaborations leverage public land and local insights alongside private sector capital and expertise, potentially revitalising urban housing development. However, the pursuit of short-term political victories often overshadows the long-term strategic investments required.

The pressure on councils is intense, with internal challenges causing significant delays. Pressures are such that one specific council now quotes up to a 50-working-day turnaround for property searches, which are crucial to the house-buying process. While many councils strive to cooperate and accommodate the needs of their residents, economic constraints, staffing shortages, and outdated systems frequently hinder their efforts. This is not only frustrating for home buyers but also for the councils striving to perform under tough conditions.

Adding to these challenges, new technology implementations in some councils are intended to streamline operations but often lead to further delays during the transition period. The necessity for system upgrades adds another layer of complexity to the already strained resources of local governments.

Tune Into Our Live Property Quorum

Join us for a lively discussion at our next Property Quorum on "What's Wreaking Havoc in the Property Sector?" broadcasting live at 10am on LinkedIn. Our expert panel includes Chris Gilsenan of Root Home , along with Juliet Baboolal LLB (hons), LLM construction a partner gunnercooke , and our chairman Gareth Wax of Many Purple Hats Ltd . Special guests today are Oliver Pattni from IRON BRIDGE FINANCE LIMITED and Jordan Willis from JW Private Finance LTD - Independent Mortgage Brokers will also join us.

If you can't catch it live, no worries! The session will be recorded and available for you to view at your convenience, ensuring you don’t miss out on these insightful discussions.

Addressing the housing crisis demands concerted effort from government bodies, local councils, and private entities. Through innovative partnerships and a commitment to strategic long-term planning, there’s hope for transforming unused land into thriving communities.