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14/10/2009

Ministers Warned Not To Stall Housing Recovery

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HBF Chairman Stewart Baseley has told Housing Minister John Healey that it was vital support was maintained for housing development in the Pre Budget Report (PBR) and warned Shadow Minister Grant Shapps that Tory localism plans had to be controlled.

Mr Shapps and Mr Healey both told the audience of assembled housebuilders that their respective party's would increase house building if elected, but by very different routes, as major policy differences emerged and housing issues shaped up to become a major battleground in the run up to the next election.

Mr Healey reiterated the government's commitment to supporting the industry, whilst Mr Shapps detailed how his party would fix the 'broken' planning system to facilitate more house building.

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Mr Baseley urged government not to withdraw the financial assistance given to support house building in recent months and to use the forthcoming PBR to 'underpin' the signs of recovery that have emerged in recent months.

Mr Baseley said: "If I have one big message for government, it is a plea not to withdraw incentives, as I fear to do so would potentially slow the market just as it is beginning to show signs of recovery. We need to see an extension of the stamp duty holiday and Homebuy Direct and Kickstart schemes as well as assistance for first time buyers."

He then warned that the Conservatives' switch towards localism was a "high risk strategy" at the end of the worst recession in living memory, and that central government could not simply "abdicate responsibility for the country's housing need any more than it can for schools and hospitals".

Mr Baseley set out a set of ground rules and controls that must be put in place to make localism work and ensure much needed housing supply was maintained and the country's innate NIMBYism overcome.

(CD/KMcA)

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