Andrew Smith, founder of Phoenix Funding, has called for a pragmatic rethink on how public-private collaboration can unlock progress when it comes to affordable housing and hitting the Government target.
The Government has set a goal to build 1.5m homes over the next five years – around 370,000 homes every year until the end of this parliament.
According to Housing Today, in 1988, SME house-builders built almost four in 10 new homes in England.
England built more homes than at any point for two generations – more than 202,000 new homes.
Smith said: “The picture is clear – we just simply aren’t building in the right places. There’s a mismatch between where new homes are planned to be built, or are already being built, and where there is economic growth and jobs available for Brits.
“If we want to solve the British housing problem, we can’t separate this from employment – people simply won’t move somewhere where they can’t get a job. Houses and jobs must go together hand-in-hand.”
The Government has identified over 12,000 new town sites in the UK, and has pushed for 40% of the new homes in these places to be affordable housing.
Smith added: “The target of 40% being affordable just isn’t viable, and the maths doesn’t stack up.
“If the Government aimed for a more achievable target, such as 25%, this would still move the needle without stalling the delivery.”
He said that the key lies in unlocking the power of smaller developers.
This means those delivering 10 to 15 unit projects, which often fall below the radar of large national plans.
Smith continued: “We, at Phoenix Funding, have previously worked with Greater Manchester councils where public grants can help cover per-unit developer profit.
“This, in turn, gives lenders the confidence to fund the rest. This model is simple and can easily be replicated across other councils in the UK.”
Smith has called for data-led policymaking that overlays the housing strategy with employment hotspots, pointing to the need to avoid repeating the mistakes of post-industrial communities.
He said: “If we build in places without future-proofed jobs, we risk locking people into poverty cycles – they won’t be able to afford a home in the area as there won’t be any jobs. The steel towns of the 70s are a cautionary tale.”
“Councils and government bodies can act as equity players – something banks won’t touch. We’re bridging that gap and making developments viable.”
