Construction : House Building in the UK
Updated: Oct 10, 2018
House Building and Construction in the UK
On Wednesday, Theresa May vowed to fix the housing problem in the UK. However, experts have cautioned that her mission to increase the construction of affordable households is not a perfect solution to the country’s housing crisis.
According to the prime minister, the government would raise its budget for affordable homes by £2 billion, taking the entire total to about £9 billion. The move is to ensure the building of 5,000 properties a year. Unlike in the 1950s where Harold Macmillan, the Conservative housing minister, spearheaded the construction of over 300,000 council houses in a year, today’s Britain suffers from a shortage of affordable housing.
In the UK, the private sector is typically responsible for building houses, and in 2016, this stood at 170,000 houses. Well, this falls short of 800,000 homes that ministers suggest are needed.
Therefore, while many have welcomed May’s gesture, experts suggest that it’s not good enough. For example, Neal Hudson of Residential Analysts referred to May’s announcement as underwhelming, and that it wasn’t going to fix the housing problem anytime soon. Similarly, Polly Neate, Shelter’s chief executive, welcomed May’s step but said this was just a fraction of the investment needed since there are more than 1.2 million houses on the waiting list.
Austerity led to a slash in housing subsidies after twenty ten.
The provision of new social housing is no longer the role of councils alone; housing associations have taken up this task. Usually, these associations are not-for-profit. Before the financial crisis, these associations obtained over £4 billion annually from the government to enable them to build subsidised households where tenants would only pay one-third of the market rent.
However, the austerity program by the collision government led to a slash in subsidies after 2010. Following this move, associations were required to invest in ‘affordable housing’ that enables them to charge their tenants up to a whopping 80 percent of the market rents. Unfortunately, this move triggered a surge in the country’s house benefit bill.
May urged construction companies to build houses that the country needs. Well, regardless of the homes these companies build, they won’t be immune to certain risks; that’s why businesses with properties in the UK protect their assets accordingly. Fortunately, Business Insurance Service is here to help you achieve that.
How can Business Insurance Service can help you?
Whether you own residential or commercial property, you can’t avoid the possibility of certain risks including flood, fire, and accidental damage, among others. Besides, as a residential or commercial landlord, your business is vulnerable to risks like loss of rent emanating from tenant arrears, content damage, void periods and rent disputes.
Well, that’s where we come in as Business Insurance Service. We will evaluate your business insurance needs before providing you with impartial, expert advice on the suitable package or policy to effectively protect your property.
Our property owners insurance covers core elements including buildings including accidental damage, landlords’ contents, and property owner’s liability that protects visitors; it offers alternative housing for your tenants.
Other than the core elements, our property owners insurance has an optional cover that encompasses elements such as loss of rent should the property become inhabitable, rent guarantee if tenants don’t pay, legal expenses, and engineering insurance for escalators or lifts.
Okay, let’s cut to the chase.
Are you ready to discuss your property or construction project insurance? Well, we would like to talk to you too. You can call to speak to a friendly member of our team or email us, to find out how we can help you get excellent insurance deals for your projects and properties.