Building by small and medium sized enterprises (SMEs) must be increased if the UK is to tackle the current and increasing housing supply crisis, Shadow Housing Minister argued yesterday, in a fringe meeting hosted jointly by the
National Federation of Buildersand Federation of Master Builders.
Despite the rhetoric of the current government, many SMEs are finding themselves excluded from procurement contracts, Dromey explained. In contrast, a Labour government would support Britain’s SMEs to build “on a grand scale” in the next parliament, as well as providing the capacity to more fully involve SMEs.
Two thirds of the homes built used to be by small and medium sized enterprises (SMEs). This has since reduced to just one third, which Dromey said was a “sobering” statistic.
The Shadow Minister said Labour would work to both “shape and popularise” existing government schemes, saying the lack of awareness of those schemes from SMEs was often a real issue.
He called for local authorities to be more sensitive to the needs of SMEs, saying funding for lending had not worked in the way that had been hoped.
He also assured the meeting that Labour was not intending on “tearing up the national planning policy framework (NPPF) lock stock and barrel”, but argued that alterations would be considered.
Labour would “cut through the crap” on the release of government land, he promised – something a builder had told him was necessary.
Dromey said Labour would particularly aim to cooperate with SMEs that “build and build quickly.”
Julia Evans, Chief Executive of the
National Federation of Builders, agreed that start-up SMEs had to be encouraged to get a real grip on the situation.
“We need to free-up house builders to build” she insisted, stressing the value that such small enterprises had in supporting their local communities:
“We let them go at our peril” she warned.
Leader of Croydon Council Labour Group, Councillor Tony Newman, stressed that local government being at the heart of tackling the housing supply crisis is “absolutely fundamental”.
Having managed to get the topic to the very top of the agenda, Labour now needed to establish and maintain trust on the issue, Newman argued, adding how some trust had been lost in the past.
He described how the aspiration of young people being able to afford to get onto the housing ladder had been “a dream that had been shattered” for most.
Newman also rejected the idea that building to a grand scale should necessarily mean the quality of the housing would be poor, arguing that high standards should be “fundamental” across the board.
Chief Executive of the Federation of Master Builders, Brian Berry echoed Dromey’s focus on the importance of capacity in the market, asking where this would come from.
The problem of access to finance for SMEs “has not gone away” Berry explained, even on a day to day basis for many. A new finance vehicle would therefore be very welcome.
It is smaller settlements across villages, towns and cities that are needed, Berry said, and it is SMEs that are needed to provide this.
He argued that tax systems for builders could be better streamlined, and that more custom builds should be encouraged.
Ultimately, “better, more energy efficient homes are needed for the next generation.”
Contributing Editor for the Guardian Housing Network Hannah Fearn, who was representing Homes for Britain and chairing the meeting, explained that 122,000 new properties were being built this year; less than half of what is needed to keep up with demand.
Fearn predicted that housing associations will soon have to choose between the development market and their original focus of providing housing for those that need it the most
Questions and answers
An audience member from the Royal Town Planning Institute asked about the scope for further engagement with communities. He also noted the danger of seeing developments as either small or large, when in reality there was a huge range.
Berry highlighted the issue with NIMBYism for new homes being built, but stressed that SMEs are uniquely equipped to react flexibly to these local concerns.
Newman also pointed to the need for a joined up approach to both development and building.
A delegate from Cambridge City Council explained that in Cambridge there are no large sections of land left, meaning they are entirely dependent on SMEs building on the smaller sections.
Evans agreed that whilst this was sometimes a question of design, there are no easy solutions to this problem.