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Housebuilders have warned the government that its regulatory policy threatens to undermine its goal of building more homes.

The response of the National Federation of Builders to the Callcutt review of housing delivery, seen by 好色先生TV, warns that the proposed regulations threaten to undermine the viability of developments.

It said: 鈥淭he cumulative cost of these items, plus increasing Section 106 and infrastructure requirements, is reaching a tipping point where viabilities, particularly of previously developed land with high existing use value, are being threatened.鈥�

It says red tape is driving many small and medium-sized firms out of the market, fuelling the trend towards greater concentration of ownership. It states in its response: 鈥淭he burden of compliance from all these agencies is very considerable, particularly for smaller and medium-sized housebuilders and is often cited as a reason for leaving the industry.

鈥淭he industry and government policy appears to be on a collision course, which is unlikely to see housebuilding output increase and it could even decline.鈥�

The federation says the focus on the housebuilding industry鈥檚 business model was misplaced. It says: 鈥淚nadequate land supply and increasing costs and complexity of regulation are the issues that should concern ministers, not business models.

It also criticises the pressure to produce good design. 鈥淢uch of the ministerially led debate about design is entirely irrelevant to purchasers and thus to housebuilders and is, if anything, an obstacle to increasing output and providing customer satisfaction.鈥�

John Stewart, director of economic affairs at the Home Builders Federation, said he broadly agreed with the NFB analysis.

He said: 鈥淭he complexity and the amount of regulation is now becoming so enormous that it poses a risk to our ability to deliver the 200,000 homes per annum.

鈥淥ne of the reasons is that every piece of regulation tends to be treated in isolation.鈥�