The government’s ambitious housebuilding targets have been struck a fresh blow after an advisory body suggested that they are, in fact, not ambitious enough.
According to the National Housing and Planning Advice Unit (NHPAU), the current aim of building three million homes by 2020, the equivalent of 240,000 each year, will not stop first-time buyers from finding it even harder to buy a home in the future.
Consequently the target should be raised to 270,000 a year, but even this will only serve to keep the price/income ratio at its current level, the group added.
“If the government proceeds as planned, house prices will continue to out pace earnings leaving those with aspirations to home ownership cast adrift,” advised Jill Craig, head of policy and public affairs at Rics.
Government targets ‘insufficient’