Jan Crosby, Corporate Finance partner at KPMG comments on the Government’s announcement to release public land in order to build as many as 100,000 new homes:
“Releasing government land is a sensible strategy on housing and overall the sector should be pleased with the announcement. Equally the “build now, pay later” concept will improve cash flow for house builders which will be particularly helpful in facilitating building on larger sites and encouraging capital constrained housebuilders to come back into the market.”
“However, selling off public land is not a quick fix for the nation’s housing problem as it doesn’t address the larger issues of planning uncertainty and, more importantly, the lack of funded demand through limited mortgage availability. Therefore putting 100,000 land plots on the market won’t necessarily increase the number of homes if no one is there to buy them. It may however give a boost to volumes of affordable housing, potentially through partnerships with RSL’s (Registered Social Landlords) and contractors.”
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