Whisper it – but effectively the government is creating a quasi-nationalised housebuilding sector. It's potentially a brilliantly simple idea that could also solve other problems. For example, with housing associations in charge, it should be easier to produce truly mixed-tenure estates. Barriers to using factory-built homes should be easier to bring down, too.
However, the reality is that RSLs will not be able to compete unless the playing field is tilted. What's needed most is for the government to feed them a cheap supply of land. Changes in legislation to allow councils to sell off land for affordable housing for less than the highest bid are a start. But for this to work on the scale that's needed, Prescott needs to strike land deals with other government departments – yes, joined-up thinking. There are other unanswered questions, not least just what changes Prescott will make to a planning system that remains one of the biggest barriers to building homes of any description.
Effectively the government is creating a quasi-nationalised housebuilding sector. It’s potentially a brilliantly simple idea
It's worth remembering that middlemen are often there because of the expertise they bring and the gamble they take. Housebuilders don't just make large profits, they can make spectacular losses too. The partnership approach advocated by Lord Best (see page 11) may be necessary to ensure RSLs don't squander money on the process and to help them shoulder what could prove an unwise degree of risk.
Source
Housing Today
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