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Removal of mandatory housing targets has ‘economic consequences’

The removal of housing targets risks a deeper recession and high house prices for generations to come, a planning expert has warned.

The Government dropped mandatory local housing targets from its flagship Levelling Up and Regeneration Bill earlier this month, claiming they will instead be a starting point that will be considered alongside residents’ concerns.

Karen Charles, director and head of Leaders Romans Group planning brand Boyer’s Wokingham office, suggested this “politically motivated” and “ill-considered move” would have economic consequences.


She said:  “It is a very disappointing decision as it will inevitably result in under-delivery at a time when annual housing delivery has declined to its lowest level for five years. It will undoubtedly do nothing to address the housing crisis and support economic growth.

“Ultimately, if local authorities do not need to meet housing requirement figures, many will choose not to identify sites for new housing.

As well as hitting current housing supply, she warned removing targets would have an impact on house prices for future generations.

She added:  “Further impacts may include a deepening of the recession, as construction represents around 7% of UK GDP and with it, an increase in unemployment - as construction remains a labour-intensive industry and much of what remains of UK manufacturing-base is linked to construction. This, again, could affect house prices.”


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