Another top-down scheme is not the solution to home affordability problems, says HBA
The House Builders Association (HBA) has expressed its concern with the Starter Homes policy in the Housing and Planning Bill which is not affordable to most people and could give local decision-making powers to the secretary of state.
Taking the example of the average London salary of £27,531 – Starter Homes would only be accessible to individuals earning £77,000 and able to afford a deposit of £97,000. The Local Government Association (LGA) has now labelled the Government's proposed policy as unaffordable
The HBA agrees with Lord Kerslake’s criticism of allowing the secretary of state to decide how many Starter Homes should be built on specific sites, something which is clearly at odds with localism and the devolution of powers.
Rico Wojtulewicz, policy advisor for the HBA, added: “Affordability is a real concern, not just in London but nationally. This problem may be more acute in rural areas, where brownfield sites are much harder to identify. Taking decision-making powers away from local authorities may prove to be counter productive, particularly because councils are better placed to decide the right mix of housing in their local areas.
"Unlocking the potential of SMEs to deliver more homes and making more smaller sites available will be more successful than another top-down solution.”
