Sector Focus 

Housebuilders underpinned by supply shortage

Housebuilders underpinned by supply shortage

Recent initiatives to address the housing shortage in the UK have tended to focus on introducing measures to promote more social housing. This is probably the right way to go because traditional private home builders are never going to close the gap between supply and demand. Local authority sponsored construction would help to resolve the problem considering that in the late 1960s council home completions were topping 400,000 a year as opposed to virtually nothing at the moment. Measures in this year’s Budget to allow local authorities to borrow to build is at least a step in the right direction.

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