Shadow housing minister says a Labour government would help the industry to build on a 鈥榞rand scale鈥

Jack Dromey

A Labour government would 鈥渄ouble鈥 the current rate of housebuilding in a major drive that will involving closer partnerships between councils, volume housebuilders, SMEs and housing associations, the shadow housing minister has said.

Speaking on the fringe of the Labour Party conference this morning, Jack Dromey said councils, working in close partnership with housing associations and housebuilders, will be the 鈥渒ey engine of delivery鈥 in Labour鈥檚 proposed drive to boost housebuilding numbers to 200,000 a year.

Labour鈥檚 committment to ensure 200,000 homes are built each year by the end of the next parliament, with the party appointing Sir Michael Lyons to a new commission to examine ways to boost housebuilding.

Speaking at event organised by London Councils, the shadow housing minister defended the party鈥檚 target of 200,000 new homes a year, below the estimated annual rate of household formation of 230,000 to 240,000.

Responding to a question over whether the target of 200,000 homes a year is enough, Dromey told 好色先生TV that meeting this figure was already a 鈥渇ormidable challenge鈥.

He added: 鈥淲e are talking about at least 200,000鈥re we going to stop at 200,000? No we are not.鈥

He said: 鈥淟arge-scale builders will be partners in a major house building programme. We will be demanding partners but there will be a long term certainty [for housebuilders] which doesn鈥檛 currently exist.

鈥淲e are talking about a scale of ambition that no government has engaged in for a very long time. Our aim is to double housebuilding.鈥

Dromey said there was no 鈥渟ilver bullet鈥 to tackle what he described as an acute housing crisis, but said bringing SME builders back into the market and expanding self-build and the private rented sector were all part of the solution.

He also backed further institutional investment in housebuilding including the use of council pension schemes plus the creation of 鈥渘ew towns and garden cities鈥.

Speaking at an event hosted jointly by the National Federation of Builders and Federation of Master Builders, Dromey said that despite government rhetoric on opening the supply chain to SMEs, the small builders continued to find themselves excluded from public procurement.

Dromey said two thirds of the homes built used to be by SMEs, but now that had dropped to just one third.

He said a Labour government would support Britain鈥檚 SMEs to build 鈥渙n a grand scale鈥 in the next parliament,

He said Labour would work to 鈥渟hape and popularise鈥 existing government schemes to boost SME involvement, saying a lack of awareness was often a real issue.

He added that would not 鈥渢ear up鈥 the government鈥檚 planning reforms, although alterations would be considered.

In his speech to the conference this morning, shadow communities secretary Hilary Benn said the housebuilding push would not involve 鈥渢op down targets鈥.

He said: 鈥淟abour will get Britain building again. We鈥檙e just not building enough homes and yet, in the last few years, the profits of the big housebuilders have soared.

鈥淟and is too expensive. Too often developers hang on to it hoping for the price to rise. And communities feel powerless.

鈥淪o what will a Labour Government do?

鈥淔irst, we must admit that we can鈥檛 carry on saying on the one hand 鈥渨here are the homes for the next generation?鈥 and on the other 鈥榩lease don鈥檛 build them near me鈥.

鈥淣or will we get more homes by top-down targets. Councils and communities must take that responsibility but they need more power to be able to do so.

鈥淐ommunities should know where land is available. That鈥檚 why we will ensure developers register the land they own or have options on.

鈥淎nd where land is not brought forward for homes, communities should be able to do something about it.

鈥淎nd when communities have given planning permission they should be able to say to developers: we鈥檝e given you the go ahead so please get on and build the homes you said you would. And if you don鈥檛 then we鈥檒l charge you and, if you still don鈥檛, we鈥檒l sell the land on to someone else who will.

鈥淪econdly, there are areas in the country where councils and communities see the need for more homes but there just isn鈥檛 the land to build them on.

鈥淪o the next Labour government will give those communities a new 鈥楻ight to Grow鈥, allowing them - if they want - to expand and ensuring that neighbouring areas work with them to do so.

鈥淭hirdly 鈥 it鈥檚 time to build new communities - new towns and new garden cities. That鈥檚 what the great Attlee Government did as they started to rebuild Britain and we need that same spirit again.

鈥淪o we will invite local authorities to come forward, and in return, we will make sure that they get the powers and the incentives they need to acquire land, put in the infrastructure and build. Build those new communities.

鈥淕etting Britain building, with communities taking the lead. People deciding where the new homes will go and what land they want to preserve.鈥