Speaking at the 'Housing Market Intelligence' conference in London, HBF Executive Chairman Stewart Baseley told representatives from the house building sector that the industry was at a "crossroads" in terms of housing delivery. He said that that the 'cash cow' model of recent years that relied on rising land prices would in the future no longer be able to support the growing 'wish-list of social objectives' as in the past.
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He warned that to expect it to do so would result in much needed housing delivery being reduced.
Mr Baseley went on to say that he was experienced enough to know that the economy, like the housing market was cyclical, and that it would emerge from the current downturn at some point. He was keen to point out that ongoing discussions about regulation and future policy needed to take in to account the fact that reduced land prices would mean that in the future land owners and home builders would not be able to bear such a significant proportion of the cost of these items, however worthy they may be.
In response, Ms Beckett was absolutely committed to supporting the industry and to listening to house builders concerns, and that she was looking to develop a 'progressive' relationship with an industry that she acknowledged had been hit hard in the recent economic downturn.
(CD/JM)
