HCA is giving a kick start to builders

May 1 2009 by Iain Laing, The Journal

THE construction industry and good news don’t seem to go together very often in the media these days, if indeed the words “good news” are found in relation to any industry at the moment.

However, the Homes and Communities Agency (HCA) appears to be full of it these days. Good news, that is.

As many builders have been sent on permanent tea break and sites have ground to a halt across the country, the HCA has not only made a positive prediction for the year 2009 to 2010, but it has also taken a step to encourage the sector to get creative in its efforts to get moving again.

Having delivered 50,000 affordable homes, the HCA claims in its preliminary end of years that it will at least do likewise again in the coming year.

With a serious lack of private development under way, subsidising start of work on affordable housing sites, the HCA wants contractors to come up with alternative ideas to kickstart the sector. While combinations of public and private investment, land and profit are all on the table, builders are being actively encouraged to come forward with ideas. The signs are already there that the market may be ready to start an incline as figures from the National Housebuilding Council (NHBC) show that 16,232 applications to start homes were received in the first three months of 2009.

This represents a 2% increase on the last quarter of 2008 – the first rise in nearly two years. As if to back-up the positivity of the HCA, the figures also showed that 3,011 social homes were started, compared with 2,943 private – the first time the balance has been tipped in this way since 1986.

On the flipside, private sector starts were down 70% for the same quarter year on year and public starts were 12 per cent lower, while completions were significantly lower than at the end of 2008.

The combined message seems to be that while we can see growth or, dare I say the words “green shoots”, there needs to be some creative gardening to nurture these signs of recovery to give our sector the best chance of flourishing.

The Chartered Institute of Housing is delighted to support anything that can help build more houses. It is crucial that the whole sector works closely with the HCA in order to tackle the problems of the housing market and the supply of affordable housing.

For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on (0191) 383-7435 or catriona@constructingexcellence- ne.org.uk.

Gavin Brown is commercial manager with Four Housing Group and regional treasurer of the Chartered Institute of Housing in the North East