Chris Coates, Managing Director of Oakford Homes comments on Cameron's plans


 Support for small and medium sized homebuilders within the housebuilding sector is vital when it comes to releasing government owned land and can benefit both the tax payer with early land receipts and the home buyer with more competition and choice.  A consortium of four or five smaller developers would be significantly more likely to build out schemes for 50 to 80 homes per year each on a site whereas a volume builder on the same site controls the rate at 100 homes a year and retains a land bank for future years. This restricts choice and delays delivery.


The volume builders have access to a range of immediate lending sources not available to small and medium home builders. Therefore the government needs to ensure that land is parcelled appropriately to be accessible for smaller house builders and in doing so, they should also address the reluctance of banks to support businesses across all scales.  It should be as easy to borrow £1 million as it is to borrow £50 million.
 
Provided the land is made widely available, the increased supply of homes and the introduction of more first time buyers onto the property ladder should help stabilise prices, increase employment in the sector and fuel the economy so it’s a win/win together with a better return to the tax payer.