Government 'failing families' in bid to meet new homes target

The Government was today accused of 'failing families' in a bid to meet its target of building three million new homes by 2020.

Shadow housing minister Grant Shapps said the Government was imposing rigid density targets on developers to ensure it would not miss its "arbitrary" housing target, regardless of whether these were the type of properties people wanted.

At the same time a group of MPs and peers warned that the Government would miss its new build target unless it encouraged private sector investors to build and manage the homes.

Mr Shapps said the proportion of flats being built had soared to nearly half of all homes built last year, up from just one in five in 2001.

He said: "The Government have invented an arbitrary target of three million homes by 2020 and fearful of missing their target have imposed density targets meaning that one and two bed flats are being crammed on top of each other throughout the country, regardless of what local conditions and families actually require.

"Every week I meet families in my constituency and around the country who are begging for help with housing, but they've been let down by a Government who think they know best what kind of housing should be built in their area."

The Conservatives have pledged to scrap the density targets, and instead free up local authorities to decide what type of housing is needed in their area.

Meanwhile the All Party Urban Development Group said councils needed extra support from Whitehall, and particularly from the newly created Homes and Communities Agency (HCA), if they were going to deliver the additional homes that were needed.

It warned that the HCA must avoid the "temptation" to nationalise housing policy, and should instead work with local councils to address the different needs of housing markets, bringing skills and investment from the public and private sector together.

It said large parts of the South East were grappling with the challenges of demand and affordability, while some areas of the north were struggling to regenerate communities, creating both affordable homes and ones that could be sold at market rates.

The group also said private sector landlords would have a vital role to play in delivering more homes across England, but it said individual buy-to-let properties would not make up the shortfall.

Instead it said the Government needed to do more to encourage long-term, professional institutional investors.

It said professional rented developments were common in the US, Germany and Switzerland, and institutional investors were well placed to build and manage large quantities of affordable, good quality homes.

Clive Betts, chairman of the All Party Urban Development Group, said: "It's time to move beyond national housing targets. We urgently need to get to grips with the practical difficulties of building three million new homes.

"Local authorities must play a key role in delivering homes, and they need help to deliver the goods.

"The HCA is in a strong position to bring housing expertise under one roof and give specialist advice to local authorities. However, more needs to be done to attract long term professional institutional investors into the private rented sector. Otherwise the number of homes will fall considerably short of the mark."

Communities Secretary Hazel Blears said: "By refusing to back our national effort to build more affordable homes, the Conservatives are betraying every first-time homebuyer and family wanting more space.

"The Conservatives wrecked the housing market last time they were in power, with record repossessions and sky-high mortgage rates, not to mention record homelessness, with teenagers sleeping in doorways in every major city.

"Based on their record of failure, they have zero credibility when it comes to providing everyone with a safe, affordable home."

A Communities and Local Government Department spokesman added: "It is for Government to show leadership on major challenges facing the country and we make no apology for raising the bar on our ambitions, bringing forward a new programme of reform and massive extra investment.

"For a generation, the supply of housing has not kept up with the rising demand, meaning first-time buyers struggle to get on to the housing ladder - which is exactly why the Prime Minister pledged to deliver three million new homes by 2020.

"Our target is challenging but achievable - it will actually help galvanise both the private sector and public sector to play their role in meeting future housing need.

"But it is absurd to claim the HCA will 'nationalise' the delivery of the new homes.

"In fact, we have made clear the HCA will work very closely with local authorities and regional agencies as a delivery partner to enable them to provide homes where they are needed most."