The Federation of Master Builders (FMB) is calling for incentives to promote small-scale new housing developments, which focus on existing neighbourhoods, villages and towns, as opposed to creating large new settlements, in its response to the Government's housing green paper.

Brian Berry, Director of External Affairs at the FMB said: "England's housing crisis would be best achieved by promoting small scale housing development which could provide an estimated 18 million family sized homes. England is the most crowded country in Europe with the worst road congestion, and the longest commuting distances of all our European neighbours. Although we have only built on 11% of our land this development has sprawled very badly with most of our remaining green land either in use, protected, or needed for environmental food, recreation and forestry purposes. We need to concentrate new housing development on existing communities rather than going for a mad dash for suburban and rural housing.

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Mr Berry added: "Given that by 2050 an estimated two thirds of us will be living in homes that already exist today, the need to modernise and maintain our existing housing stock is vital to our housing future. The easiest way to achieve this would be for the Government to cut VAT on energy efficient repairs and maintenance from 17.5% to 5% to ensure that the existing housing stock can be repaired and upgraded for future use."

(CL)