As the housing market in the UK continues to be blighted by a serious shortage, small and medium-sized developers are complaining about a lack of support from the government and other legislators.
Builders and developers face a number of pressures and challenges at present that are making their jobs difficult. A survey conducted by CRL revealed that one such challenge included inadequate support from those that are responsible for setting regulatory and legal requirements.
Shocking figures revealed that 53 per cent felt that the government was ‘unsupportive’ and ‘very unsupportive’, with just 2 per cent feeling as though legislators are ‘very supportive’ of the industry. Sentiments that Government policy also unfairly favours larger homebuilders over smaller ones have continued to circulate.
Kennedy Zvenyika, Managing Director of GIC Capital said: “The Government has set a target of building 300,000 houses each year to address the shortage. While this is necessary to improve the shortage and present millennials with the opportunity to get on the property ladder, legislators will need to consider how they can get behind small homebuilders and support their businesses and the work that they do.
“There is a focus on producing homes quickly, with ministers suggesting that developers who fail to erect properties at a suitable speed should have their land confiscated. Measures like this may be necessary if homes are going to be built at the rate that they need to be, but the Government should consider how removing unnecessary red tape from the process could be beneficial.
“While corners should never be cut when it comes to building properties that are safe and structurally sound, there may be merits to simplifying inspection and certification, both of which will speed up the housebuilding process for SMEs and other developers.”
GIC Capital offers UK businesses operating across a variety of sectors including retail and construction with fast and flexible expansion capital options.
The businesses Portfolio Capital Service is ideally suited to landlords, investors and property traders and is provided by quality investors, enabling SMEs to unlock the potential of their property portfolio.