RICS: Housing and the credit crunch

Commenting on the Communities and Local Government Committee report into housing and the credit crunch, RICS Policy Officer James Rowlands says: "Low levels of housebuilding are a serious issue that must be addressed alongside mortgage lending as part of the Government's response to the economic situation. Current market conditions mean that the number of homes being built has fallen dramatically, as housebuilders are reluctant to develop if homes will not sell. As a result, it is likely that the number of homes built in 2009 will be significantly below 80,000, well short of the Government's target of 240,000. With private housebuilders reluctant to develop the Government must be looking to use the Homes and Communities Agency and housing associations to make up some of the shortfall. This will help deliver essential new units and prevent skilled workers leaving the housebuilding industry."