New affordable housing developments are “nearly impossible” to deliver according to a leading property consultant.
Property consultant Cluttons is calling for an immediate funding policy rethink and warns that where large numbers of social housing units are required as part of the planning requirement, cuts in the social housing grant paid to developers will result in sites grinding to a halt or not even getting off the ground.
David Parry, partner in Cluttons’ land and development division, said: “With these latest changes, the Government has effectively jinxed the concept of private housing supporting the development of much-needed affordable accommodation.
“In many parts of the UK, the figures just simply don’t add up and developers will no longer be able to support the construction of social housing.”
He added: “We are in no doubt that it is a policy designed for much stronger economic times and is wholly unsuited when the economy is still wavering.