Positive planning

Latest government proposals on housing-building were revealed today and whilst, Labour have criticized the plans for not being “up to the scale of the challenge”, I myself believe that they may provide the spark required to ignite the stagnating housing market. Here are 3 reasons why...

1)      More work for builders

By allowing for extensions of up to 6m long to be built without planning permission (double the previous distance) more homeowners should be convinced that building an extension will actually add significant value to their home. This in theory would provide more business to builders, plumbers, carpenters and the like where as a result they would be able to offer more jobs and apprenterships to people as demand would require it. A reduction in unemployment would then increase consumer confidence and help to lift the UK out of the double dip recession.

2)      Reduced requirement for ‘affordable housing’

Is this the last we will see of this?

By iniating this the government is effectively giving building contractors the green light to go ahead with projects that previously they would not have attempted due to the margins not existing. This means that more projects will be started providing both more employment and the infrastructure that the UK is desperately crying out for. It will also mean that fewer housing estates will be left as uncompleted ghost towns due to over inflated prices as houses will be built to suit demand rather than out of necessity. The new regulations will therefore, help prevent the building of ‘ghost areas’ whilst encouraging development.

3)      New Firstbuy scheme to help first time buyers

The Firstbuy scheme will allow 16,500 would be home-owners to receive an equity loan of up to 20% of the purchase price. The aim of this would be to stimulate the housing market where due to the current dire state of the economy people are unable to afford a house. This means that at the current time homes are either being rented by demanding landlords or left empty. Therefore, by allowing more people to enter the market there will be more competition for housing which David Cameron hopes will, “Kick start the economy”.

I personally feel that these schemes, whilst only a step are a step in the right direction. By reducing enforcements on planning regulations and affordable housing, more construction will be encouraged and as a result additional jobs will be created. This can only be a positive and the Conservatives should be applauded because of this.