Additional Money for House Building Needs to be Coupled with Cuts in Red Tape, says Federation of Master Builders

MONDAY 19th MARCH 2012 – FOR IMMEDIATE RELEASE

The Prime Minister’s announcement of an additional £150 million for stalled building sites is a welcome boost to the struggling building industry but needs to be coupled with cuts in red tape that are stifling small house builders, says the Federation of Master Builders (FMB).

Brian Berry, FMB Chief Executive said:
“The extra £150 million as part of the Get Britain Building investment fund to get development finance directly to building firms is a positive commitment by the Government to increase the delivery of new housing. With new housing starts having dipped below 100,000 it is essential that the Government does all it can to support delivery across the whole of the industry.

Berry continued:
“However, the extra money needs to be coupled with reforms to the planning system to make it simpler and faster as well as action to reduce the regulatory burden on house builders to remove the obstacles to the delivery of new homes. The ad hoc accumulation of burdens on small house builders has resulted in a 69% reduction in the number of small firms delivering new housing. These firms used to deliver two thirds of our new housing but now they only deliver a third.”

Berry concluded:
“If we want to provide the housing that our growing population desperately needs the Government needs to lighten the load on small house builders to help them stay in business. The Government needs to urgently review all new regulations planned for the house building sector to ensure they do not frustrate the delivery of the homes, jobs, and growth that this country needs.”