Commitments To Housing In Budget First Step To Industry Recovery

Construction union UCATT have given a cautious welcome to measures announced in today’s budget to kick-start housebuilding.

However UCATT is seeking further details about the proposed schemes, as they believe that the best way to restore confidence in the industry is to build new social housing for rent.

The economic downturn has led to an increased demand for social housing. For decades too few social housing units have been built in Britain. There are currently in excess of 64,000 homeless families in England alone and over a million people in housing need.

Housebuilding is the worst affected part of the construction industry.

Allowing councils to once again become the driving force for providing social housing would mean that thousands of skilled construction workers could return to work, confidence would return to the industry and  the construction products industry which has also suffered would be revitalised.

Alan Ritchie, General Secretary of UCATT, said: “It is right for the Government to target housing. Over a million people are in desperate need of good accommodation. However as money is limited it should be spent on the most effective way of getting construction workers back to work. That is by building new homes for rent and not propping up speculative private housing developments.”

UCATT are also warning against any further encouragement for shared equity (part buy, part rent schemes). Many councils and housing associations have encouraged the building of these types of property, to meet social housing commitments. The properties remain expensive and the credit crunch has meant that mortgages of these properties have been difficult to obtain.

As a result several housing associations are facing financial meltdown because they are unable to sell properties. This has the knock on effect of reducing the capital available to invest in new properties.

Mr Ritchie, added: “The Government has a genuine opportunity to reframe the housing market and to bring to an end the 30 year obsession that you are only a success if you own your own home. By redeveloping a mixed housing market the Government can bring to an end the boom and bust culture which has afflicted housing for the last 20 years.”

UCATT have also welcomed the Government’s announcement that the minimum redundancy payments will be increased from £350 to £380 a week.

Mr Ritchie, further added: “The increased payments will provide some comfort for workers who have been laid off. It will also make employers think twice before laying off workers.”

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