Following last week’s news of the Minister warning on Labour pledge to build 1.5mn new UK homes, Phil Jenkins, CEO of international corporate finance firm Centrus has shared his thoughts.
He said: “All eyes are on the government as they have now declared that hitting its target of building 1.5m homes by 2030 is going to be “more difficult than expected”. With Planning Minister Matthew Pennycook blaming the “difficult inheritance” from the previous government – resulting in a “very serious challenge” to hit Labours target.
“The question now is how? The Minister raises some valid points. With a weak economy and housing market, housebuilders are likely to prioritise profits over ambitious building targets. Housing Associations are already stretched thin, and the for-profit sector isn’t established enough to take the lead. Even fiscal solutions seem limited by the current economic climate.
“Labour’s commitment is admirable, but it needs a clear roadmap that addresses these challenges. The hard reality is that delivering 1.5 million homes will require creative solutions and a willingness to tackle these existing hurdles.”
