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.”
-ends-
For further information please contact:
Katrin Boettger
Tel: +44 207 896 4232
KPMG press office: +44 207 694 8773
Email: Katrin.boettger@kpmg.co.uk
About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
