Real estate professionals sceptical about UK Government plans to plug the housing gap
New research by Engen Group reveals that 58 per cent of real estate professionals in the UK feel that the Government’s target of 300,000 new homes a year is too low.
There is also some scepticism about the Government’s ability to meet this target, with the consensus (96 per cent) agreeing that this target will be missed over the next few years. In addition, two-thirds (62 per cent) of those questioned are not confident that the Government will stick to its recent promises to address the housing crisis.
As a result, 64 per cent predict that the housing shortage will worsen over the next five years and only 14 per cent expect it to improve. In addition, 44 per cent believe that affordability will get worse over the next ten years, 30 per cent feel it will remain the same as today and only 26 per cent predict that it will improve.
Despite the pessimistic outlook, there was a positive reaction from 68 per cent of real estate professionals who felt that Government plans aimed at making owning a home more affordable were effective. This includes the First Home scheme, councils using housing developer contributions to discount homes by 30 per cent, and the renewal of the Affordable Homes Programme. Just 28 per cent felt that such schemes were ineffective.
The research also highlights that 48 per cent of real estate professionals also believe that Suitable Alternative Natural Greenspace (SANGs) will have a positive impact on the rate of property development in their surrounding areas.
Graeme Boiardini, CEO of Engen Group, says: “Our findings highlight the challenge that Government and local councils face when it comes to addressing the housing crisis. There is an imbalance between income and house prices which is being compounded by the lack of affordable housing, particularly in areas such as London and the South East.
“We welcome initiatives that increase the rate of sustainable housing development that are committed to building communities and protecting the environment.”