I'm all for economic stimulus to kick the UK's unimpressive economy into gear, but with Labour pinning its flag and hopes to the construction industry as a form of quantitative easing without industry reform and regulation, the outcome can only hurt the industry and house buyers alike. Northern Survey have been snagging New Build quality over many years, in which we have seen craftmanship replaced by a culture of outsourcing and a tick box view of quality that onerous contracts of sale and loose regulation encourages.
For years NS have added their voice to the call for regulation to curtail the poor build quality of developers and introduce greater protection for buyers. It seems our calls - that echo the Chartered Institute of Builders, The Home Builders Federation and RICS - have fallen on deaf ears. Instead, the ill's of subcontracting, little concern for quality of product and one sided contracts of sale will continue...only now the industry must find an extra 33% build capacity.
So where will all these new, fully qualified builders come from? And given that most developers have a shallow Public Relations view of quality assurance, how will this effect the finished product when as we stand the FHB report 94% of new built homes have defects, of which 75% have more than 25?
Lets also think economics of build: along with government targets comes material and labour cost inflation which, can only result in more houses of lower quality, that cost more, and add to the housing stock issues of tomorrow. Are we creating another house price bubble that when it bursts will saddle the 30% of young people living with parents today, or the 1.2M on council lists with substandard, deteriorating property and negative equity? Or will the industry be forced to put quality and customer satisfaction first and foremost through regulation and inspection?
Time for the industry and the new government to take this matter by the scruff of the neck...before we have a housing problem not seen since the '70's.
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