Pre-budget: house building bodies cautious

Government plans to free up mortgage lending and bring forward infrastructure spending have been cautiously welcomed by house builders.

But industry bodies have also warned plans contained in Chancellor Alistair Darling’s pre-budget report need to go further to dramatically impact the ailing sector.

The Home Builders Federation (HBF) called the additional £150m earmarked for new social housing “painfully inadequate in today’s circumstances”.

“Much more investment needs to be brought forward both to purchase available stock and to ‘pump prime’ new sites with up-front cash to help builders commence new projects as a matter of urgency,” the HBF said in a statement.

HBF executive chairman Stewart Baseley said the government’s measures were welcome but would “do little to boost a depressed market”.

“The money allocated to start building projects is seriously disappointing and will do little to assist,” he said.

The HBF welcomed a commitment to act on recommendations made by Sir James Crosby, but warned action was needed fast.

Roger Humber, strategic policy advisor to the House Builders Association, said Crosby’s recommendation to give mortgage guarantees was essential to increasing mortgage supply.

“We hope government quickly obtains EU approval,” he said. “This should be expected given that there is no cross-border competition between the UK housing market and others on the continent.”