Why government will fail to meet own housing targets
I really don’t know how many times the government can fail to meet its own targets on building new homes and still credibly claim that they will make sure they do it next time around.
I noticed this was (again) a key pledge in the Budget this week.
Unfortunately the Tories are wide of the mark in blaming local authorities and the planning system for the failure to deliver “on the ground”.
It seems to me that the problem isn’t with the planning system, but large scale developers, (who generously support the conservative party with donations), taking part in the practice of “land banking”.
As we have seen on land locally, planning permission has been granted but no development has taken place.
This has the impact of driving up house prices (because of the laws of supply and demand).
This suits the needs of developers who can sell the homes they do build at higher prices.
That’s the real issue.
As the law stands, government cannot compel developers to build.
They will only do so at a pace that suits them and being private companies, they seek to maximise profits.