Andrew Smith, property expert and co-founder of Phoenix Funding, has called for smarter public-private partnerships to meet UK housing targets.
The Government set a goal to build 1.5 million homes in the course of this Parliament, which means around 370,000 homes each year.
Smith said there should be a more practical approach to public-private partnerships to deliver affordable housing and reach the target.
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.”
Smith noted that the Government put forward over 12,000 sites for new towns and set a target of 40% affordable homes in these locations.
He said this figure was unrealistic, and that the delivery of new homes would be more achievable if the affordable target was reduced to around 25%.
He added that smaller developers, often working on schemes of 10 to 15 homes, are crucial to meeting housing demand but are frequently overlooked in national planning.
Smith explained that in previous projects with councils in Greater Manchester, public grants have been used to cover per-unit developer profit, which gives lenders more confidence to provide funding.
He added that this approach is straightforward and could easily be used by other councils across the UK.
Smith called for data-led policymaking and a housing strategy matched with employment hotspots.
Smith added: “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.”
