Assetz® News - The search for a new housing policy

The search for a new housing policy

2nd July 2008 |

Its official: the Federation of Master builders upper (FMB) has got political. The body has for some time been campaigning for new policies such as a project to bring existing homes that are lying idle around the country back into use and to cut the rate of VAT for renovation work and materials from 17.5 per cent to five per cent. It has also come out against the government's flagship policy of building eco towns.

Of course, any organisation concerned with advancing what it believes are the best ways to boost the fortunes of its sector is likely to seek to influence the government's policy. To some observers, however, it may have appeared that a line was crossed when the FMB commented yesterday that the Conservatives were moving in the right direction with their housing policy.

The issue upon which FMB director of external affairs Brian Berry voiced his agreement with Conservative shadow housing minister Grant Shapps was that of the "failure of the government's top-down approach" to increasing the number of new homes being built.

However, this was not a party political endorsement, for Mr Berry added that while the FMB welcomed the declaration by the party that it is seeking to raise new homebuilding, the Conservatives still need to put flesh on the bones of their own plans to deal with the issue.

He stated: "What we need the Conservative Party to do now is to spell out what incentives it intends to introduce to bring this about and what it intends to do with the existing housing stock to make it greener and more energy efficient."

Mr Berry stated that he was keen to see the Conservatives adopt an idea the Labour government has so far resisted: "A commitment to cut VAT from 17.5 per cent to five per cent would be the ideal start to show its real commitment to the housing needs of this country."

Therefore, it is not the case that as yet the Conservatives have a full set of housing policies that will get the endorsement of the FMB. What is clear, whoever, is that the body is disenchanted with many government policies.

Evidence of this came later today, when housing minister Caroline Flint announced £270 million to be spent via the Housing Corporation to increase the number of affordable homes to be rented or bought, including 1,500 for joint buying, something she said was intended to "create the conditions for a rapid recovery [of the market]".

Responding to this, Mr Berry argued there was no new money being spent as the cash had already been allocated and launched a fresh attack - his second this week - on the eco towns plan, labeling it "not the answer".

He added: "The government lower could do worse than to address the 675,000 empty homes in England and cut the VAT on repairs and maintenance from 17.5 per cent to five per cent which offers scope to regenerate and bring other disused buildings back into residential use."

In both cases, therefore, the FMB has sought to push its own agenda of the policies it believes any government should adopt. What this suggests is that, rather than taking sides in any partisan way, the body is simply seeking to raise the issues enough to get policy commitments from the main parties, all of which may indicate that property will be a bigger issue at the next general election than it has been for some time.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4266.html. Alternatively, please see our full press release archive.