If industry is not able to gain consents for enough homes then prices will rise and businesses will relocate
Homebuilders are looking to Labour to overhaul the planning system if they win a second term of office. Although satisfied with Labour's handling of the economy homebuilders say that the Government's PPG3 policy has led to a planning logjam and contributed to the lowest number of housing completions since the Second World War.

"Housing minister Nick Raynsford is aware of the planning problem," says chief executive of Sunley Homes Andy Wibling, "but he needs to be given the teeth to get the message across to the councils. If we aren't allowed to supply affordable homes, house prices will rise and businesses will be forced to relocate to cheaper areas."

The House Builders Federation welcomes Labour's election pledge to reform the planning system to speed up decision-making. "The promise to sort out the planning system is something we've been campaigning for for a long time," says Pierre Williams, spokesman for the HBF. "Labour is at least aware there is a pressing need for new homes."

Housebuilders gave a cool reception to the Conservative manifesto – particularly its proposals to abandon homebuilding targets. "It's a recipe for nimbyism," said Ward Homes chief executive, David Holliday. "It will make life very difficult as councils won't be forced to build homes."

Labour also announced plans to let nurses and low-paid staff share the costs of a new home with a private investor. Under the scheme mortgages could be 60% less than the market rate.

Labour proposes

  • still 60% of new housing on brownfield
  • planning reform to speed up decisions
  • £1bn tax cuts to raise urban investment
  • help for key workers in high-cost areas
  • transferring 200 000 homes a year to social landlords.

Conservatives propose

  • scrapping homebuilding targets to let local councils decide where to build homes
  • creating regeneration companies
  • discouraging inappropriate high rise development in London.

Liberals propose

  • equalising VAT at a new lower level for both new build and conversions
  • reducing development of floodplains
  • allowing local authorities to specify the percentages of social housing.