Richard Mussell, Managing Director at Rund shares his thoughts on the new Budget announcement and its impact on the housing industry.
“The Budget announcement has demonstrated a major step in the right direction for the housing industry. The £12 billion multi-year extension to the Affordable Homes Programme will give a much-needed injection of investment into a sector which is ever-increasing in demand. A large proportion of our projects are residential and involve the development of affordable housing, so we recognise this sector needs significant attention in order to answer such high demand.
“The £1.1 billion that has been set aside for the Housing Infrastructure Fund to build nearly 70,000 new homes across the country has come at a pinnacle time. The increase in demand for housing is led by population growth, which shows no signs of waning. Therefore, the £1.1 billion investment will be greatly welcomed by many developers.
“One of the biggest achievements that has come from the Budget announcement is the new Building Safety Fund, worth £1 billion. So many people are prisoners to their mortgage and are unable to sell their properties due to the installation of unsafe combustible cladding. This affects the private, rented and social housing sectors in buildings over 18 metres tall, so it’s a problem affecting the masses. It’s an incredibly positive step to see this safety factor being addressed with a large investment.
“Overall, we believe this will result in some very positive movements in the housing industry. What comes next is seeing how this large investment will be distributed more intricately, so that we can begin tackling issues such as nitrate neutrality – a current barrier to the progression of many planning developments in the south of England.”