The Rt Honourable Kit Malthouse MP, former Housing Minister under Theresa May, said the Government will “massively undershoot” its housing target because of capacity issues and market disruption.
Speaking to Iona Stewart Richardson, media manager at the Federation of Master Builders (FMB), on the Build Up from the Basement podcast, Malthouse said the Government will fall far short of its target because it is dealing with the same or even greater constraints than before.
Malthouse pointed to problems during his time in office, including “brick and breeze block production capacity, and the collapse of the small building sector following the 2008 crash.”
Malthouse said: “Before then 50% of or over 50% of the houses were built by small builders, afterwards that collapsed to below 20% and it never really came back.”
Malthouse stated that he tried to change the culture at the Ministry of Housing, Communities and Local Government (MHCLG).
He also wanted clear evidence of where new houses were being built in each region and asked for weekly updates, including photos of himself giving keys to new homeowners to show the real impact.
Additionally, Malthouse criticised the poor standards in housebuilding, saying the industry and planning system often lower quality to avoid disagreements, leading to homes with no local character.
He said discussions should focus less on the number of houses and more on their design, location, and type.
He explained that with councils, he aimed to have practical talks about where new homes would be built and what they would look like.
Malthouse said the housing market is struggling because Stamp Duty is too high and interest rates remain elevated due to inflation.
He said the decline of the buy-to-let (BTL) sector has also taken away an important source of investment.
He warned that these problems will continue unless interest rates come down and building capacity increases.
Malthouse called on the industry to show clear progression pathways, saying it should be similar to McDonald’s showing employees they can move up to management within years.
Brian Berry, CEO of the FMB, said: “I am delighted that The Rt Hon Kit Malthouse MP has joined us on the FMB’s Build Up from the Basement podcast, he has a strong track record as Theresa May’s Housing Minister and brings expert insight into the construction industry and housing policy.
“We thank him for his candid reflections and his continued advocacy for a construction sector that not only encourages more people to consider it as a career but also delivers homes that we can be proud of.
“This episode is incredibly insightful and interesting, well worth a listen!”
