In response to yesterday's Spring Statement, Alan Dobbie, Fund Manager at Rathbone Income Fund, comments on the Government's recognition of the importance of the housebuilding sector to the country's economic fortunes, and their continued prioritisation of this growth agenda, despite the tight fiscal position.

Despite the fiscal challenges, the announcement of £2 billion in grant funding to build up to 18,000 new social and affordable homes was welcomed. The Government's commitment to building 1.5 million new homes was a key manifesto mission. While this target is highly ambitious, Rathbones say the actions taken so far suggest it is not an idle pre-election pledge and are pleased that two long-standing bottlenecks - planning and a shortage of skilled labour - are now being addressed.

Alan Dobbie, Fund Manager at Rathbone Income Fund, said:

Amidst the challenges, there were some positives. The announcement of £2 billion in grant funding to build up to 18,000 new social and affordable homes was welcome. The Government's commitment to building 1.5 million new homes was a key manifesto mission. While this target is highly ambitious, the actions taken so far suggest it is not an idle pre-election pledge. We’re pleased that two long-standing bottlenecks - planning and a shortage of skilled labour - are now being addressed.

On planning reform, the Government has already made changes to the National Policy Planning Framework, streamlining the process, reintroducing mandatory housing targets, and freeing up grey-belt land. These measures should, in time, unclog the system. On recent results calls, housebuilder management teams, a group not always known for being glass half-full, sounded relatively encouraged regarding the measures announced so far.

The recent announcement of £600 million in investment to train up to 60,000 more skilled construction workers is a step towards addressing the labour skills shortage. While more needs to be done, this investment should help increase the pace of development and create high-quality jobs. We are pleased that the Government recognises the importance of the housebuilding sector to the country's economic fortunes and continues to prioritize this growth agenda despite the tight fiscal position.

Full press release: Rathbones’ Alan Dobbie: Spring Statement - 1.5m new home target is ambitious, but no idle pre-election pledge

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