Government interventions have made housing targets even more difficult, according to the independent Housing Oversight Committee headed by Sir Vince Cable.
The committee said the new build slowdown combined with the Building Safety Levy due in October this year and the lack of skilled construction workers and planning expertise further threatens the viability of many proposed developments.
Sir Vince said: “The government is looking like its own worst enemy by trying to make building easier with one hand but making it more difficult one the other. It’s no good trying to speed up planning approvals while making it more expensive to build at the same time.
“Local government reorganisation will only make it worse as councils amalgamate resources leading to even fewer planning officers employed than now.
“With new build forming only one per cent of the housing stock at most, policies encouraging improving existing properties and downsizing are essential otherwise reaching the 1.5 million new homes target will be extremely difficult.”
The committee includes Neil Jefferson, the chief executive of the House Builders Federation; Vicky Price, chief economist of the Centre for Economics and Business Research; and Damien Green, chair of the Social Care Foundation.
Members said there is little sign of revived local authority activity in social housing or local councils having greater capacity.
The committee, sponsored by Family Building Society, spelt out the following barriers: the Building Safety Levy due in October 2026; high rise safety rules; lack of skills capacity in some areas including planning officers causing long delays; Local Government reorganisation leading to decisions being postponed and fewer planning officers being employed; and cost of planning – Europe is much cheaper – leading to lack of innovation and planning.