Expect howls of protest from house builders and developers as BBC News breaks story that the Government plans to demolish significant parts of the Planning Rule Book. The big property developers have significant land banks that they have been accumulating for years and with them long term development proposals. They have convinced the public that it is uneconomic to build more homes at present having often paid too much for the land in the first place.
With up to 10% of offices lying vacant and just 130,000 new homes built last year the property market is under significant pressure. This plan could reinvigorate the commercial market as well as sending shock waves through the residential sector. We can expect to see renewed interest in commercial property companies on the back of this news as well as volatility in both property values and potentially the shares in the biggest house builders.
It remains to be seen just what the long term effects of this initiative might be but any plan to try to solve the Nations acute housing shortage should be welcomed. This bold plan could release tens of thousands of new properties into the market which would help the millions looking for a home of their own.
Some will no doubt ask why, if this is such a good idea has it not been thought of before but the last Government had 9 housing ministers during their term in office. Original thinking seemed to be the least of their worries!