Housing figures react to ‘positive’ Budget announcements for sector

David Montague, chief executive of L&Q, said: “The devil will be in the detail, but a commitment to invest £600bn in capital projects over the next five years, a £12bn extension to the Affordable Homes Programme, a £1.1bn Housing Infrastructure Fund, £650m to help bring an end to rough sleeping and a £1bn Building Safety Fund are all very good news. It was also encouraging to see that homeownership isn’t the only game in town.”

Polly Neate, chief executive of Shelter, said: “Today was an important first step, but it’s not ‘job done’. To see housing in the government’s infrastructure revolution and the biggest cash injection in a decade is good news. The big question is how much of this money will be put into the social homes we desperately need to end the housing emergency and transform the lives of millions.

“Extra investment in rough sleeping services is also very welcome but homelessness is more than rough sleeping alone – 280,000 people are homeless in England, including 126,000 children. Building social homes is the only solution and voices right across the political spectrum agree.”

A spokesperson for the G15 group of housing associations said: “Investment in the right infrastructure is crucial to unlocking land to build more homes and help new and existing communities to thrive. G15 members are committed to working closely with our local authority partners to support their growth plans and increase the delivery of new affordable homes in the areas that need them most.

“The G15 welcomes government’s announcement to make available funding for the remediation of all types of unsafe cladding. This this will give some peace of mind to the thousands of leaseholders whose lives have been put on hold, unable to sell or remortgage, because their buildings have potentially unsafe cladding.

“We need to ensure housing associations can continue to invest in building new homes. We will continue to work collaboratively with government to improve building safety and ensure that people can feel safe in their homes, and also to find a solution which will help to unstick the mortgage market.”

Brian Berry, chief executive of the Federation of Master Builders, said: “An investment of £13.7bn in housing is welcome news – however, there was no mention of how the government plans to support SME [small and medium-sized] house builders. Master builders are facing major barriers finding land, and accessing finance and skilled workers. These will all need addressing if we are to build 300,000 homes a year.”

Grenfell United, the group representing bereaved families and survivors of the Grenfell Tower fire, said: “The government is finally waking up to the severity of the situation. We hope for the first time in many months people’s anxiety might ease and residents can see an end in sight for the crisis. It’s thanks to residents up and down the country, in social and private housing, who raised their voices. We stood together and made sure we will not be ignored.

“This is just the start. The fund is for buildings over 18m only, not yet for buildings under that. Hard work is needed to make sure buildings are prioritised, the funds get out quickly and work starts immediately. Every building needs a timeline and residents must be listened to and supported throughout the process. Many residents have already lost so much just waiting for help. And if more buildings need action, that action must be taken.

“We cannot let the construction industry or building owners off the hook. Grenfell must serve as a line in the sand.”

A spokesperson for the UK Cladding Action Group said: “We welcome and thank the chancellor for factoring in the cladding scandal into his Budget. [The scandal has been] a nightmare endured by over half a million British people across the country for far too long.

“We look forward to hearing in more detail how this money is to be spent and do hope as stated that it covers all types of cladding and fire safety defects. Notedly, today’s announcement does not address what will now happen for buildings under 18m.

“We will be looking into the fine details of the announcement in the coming days. Given the slow pace of remediation to date, it raises questions about whether or not this funding will cover waking watches and interim measures and whether leaseholders will be able to remortgage, sell or gain affordable insurance in the interim period of time.”

A spokesperson for the Manchester Cladiators group said: “The announcement today of a £1bn Building Safety Fund in the Budget is a hugely positive step in response to concerted efforts by affected residents to get their voices heard.

“However, our experience of the government’s £200m aluminium composite material fund, announced in May 2019, also shows that it will be many months before works are completed and all residents’ homes are made safe – including those buildings under 18m.”

Matt Wrack, general secretary of the Fire Brigades Union, said: “The government has finally recognised that they did not provide sufficient funding to keep people safe after Grenfell and that the building safety crisis goes further than just the same flammable cladding that burned that night. But these measures do not go far enough. They are still ignoring those at risk in buildings under 18m, such as the Bolton Cube. This is not good enough and won’t keep people safe.”

Mark Washer, chief executive of Sovereign Housing, said: “The chancellor clearly recognised the importance and long-term benefits to people and places of investing in quality homes. The measures unveiled today – particularly the expanded and extended Affordable Homes Programme, but also investment in building safety, the Rough Sleeping Initiative and more support for mayors and councils – will be key in making more new homes possible.

“However, we will need to see the fine print. I firmly believe that all types of homes, whether to rent or to own, are required to create genuinely great places to live – as well as to help tackle homelessness and reduce reliance on costly temporary accommodation.”

Stuart Ropke, chief executive of Community Housing Cymru, said: “With extra funding promised to Wales, we urge the Welsh government to act on their promise to prioritise additional spending for the Housing Support Grant, which funds crucial services to tackle homelessness in Wales.

“We would also like to see the Welsh government now invest further in supporting housing associations to build 75,000 zero-carbon affordable homes and create 50,000 jobs by 2036.”

John Fuller, chair of the District Councils’ Network, said: “We are pleased the chancellor has announced funding for councils to help working people suffering hardship as a result of the coronavirus. The District Councils’ Network had a significant say in the design of the fund and we are delighted to see this announced today.

“To make this investment really count it will be important for it to be channelled directly to district councils, and with full flexibilities and no ringfences so that we can rapidly respond to the range of issues this will throw up across our communities.”

Hew Edgar, head of UK government relations and city strategy at the Royal Institution of Chartered Surveyors, said: “Delivering green, new housing required an ambitious approach to VAT, not superficial tweaks to stamp duty – so we’re disappointed the chancellor didn’t support the property industry to retrofit thousands of buildings, turning them into places people would have loved to call home.”

Michelle Tyler, director of social Housing at Civica, said: “Aspiring homeowners and housing providers will be pleased to know that the government has today committed to progressing towards its target of 300,000 new homes by the mid-2020s, with the expansion of the Affordable Homes Programme and an additional £12.2bn investment to build affordable homes across the country.”

Jan Crosby, UK head of infrastructure, building and construction at KPMG, said: “The focus on more affordable housing and reassessing the planning system are sensible approaches to facilitating the delivery of more mixed-tenure housing on sites, increasing housing delivery as a result.”