Extra cash for infrastructure a must to increase house building

Further investment in infrastructure must be made if plans to increase house building in the south east are to succeed, international consultancy EC Harris has warned today (Thursday).

Both the Chancellor's spending review and London Mayor Ken Livingstone's draft plan have recognised the need for more housing in the region.

However, according to EC Harris, they have failed to identify where funds for the vast infrastructure improvements - particularly required in areas such as the Thames Gateway - will come from.

Richard Jones, head of affordable housing at EC Harris, said that flexibility for developers is vital.

"The call for some 50% of new housing to be affordable accommodation or subsidised for key workers must be flexible," he said.

"While land values in most parts of the south east can accommodate a high proportion of affordable housing, in some instances this may blight the development of entire sites.

"Flexible approaches that encourage the development of all types of housing must therefore be found."