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Engen Group: Government housing target is “too low”

Over half (58%) of UK real estate professionals believe the government’s target of 300,000 new homes a year is too low, research by Engen Group has revealed.

The majority of those surveyed (96%) agree that this target will be missed over the next few years, whilst two thirds (62%) of those questioned are not confident that the government will stick to its recent promises to address the housing crisis.

As a result, 64% predict that the housing shortage will worsen over the next five years and only 14% expect it to improve.

The research also shows that 44% believe that affordability will get worse over the next ten years, 30% feel it will remain the same as today and only 26% predict that it will improve.

There was however a positive reaction from 68% of real estate professionals who felt that government plans aimed at making owning a home more affordable were effective.

This includes the First Homes scheme and the renewal of the Affordable Homes Programme.

Just 28% felt that such schemes were ineffective.

The research also highlights that 48% of real estate professionals also believe that Suitable Alternative Natural Greenspace (SANGs) will have a positive impact on the rate of property development in their surrounding areas.

Graeme Boiardini, chief executive of Engen Group, said: “Our findings highlight the challenge that Government and local councils face when it comes to addressing the housing crisis.

“There is an imbalance between income and house prices which is being compounded by the lack of affordable housing, particularly in areas such as London and the South East.

“We welcome initiatives that increase the rate of sustainable housing development that are committed to building communities and protecting the environment.”

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