The atmosphere was charged with anticipation as I settled into a dialogue with Steve Cresswell, the dynamic chief executive of Chartway Group, to explore the future of housebuilding in the United Kingdom. Surrounded by the warmth of his welcoming office, Steve’s enthusiasm was palpable as he delineated the critical requirements for the industry over the next hundred days. Drawing from years of experience, his insights vividly illustrated the challenges and opportunities that lie ahead.
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“Housebuilders are genuinely excited to deliver the government’s ambitious targets for new homes,” Steve began, his eyes reflecting both determination and hope. “But we need a supportive framework to make it happen.”
Steve promptly highlighted the recent interest rate cut to 5% in August as a positive step, yet he emphasised that additional reductions are essential to invigorate the residential market and meet the housing delivery targets set for 2025. “The first interest rate cut is a good start, but it’s not enough. We need additional cuts to stimulate the market effectively,” he explained, leaning forward with earnestness. “Interest rates play a pivotal role in the real estate sector. Lower rates can significantly enhance affordability for first-time buyers and help drive the purchase of new homes.”
The conversation then turned to Stamp Duty Land Tax (SDLT). Steve acknowledged its critical role in generating revenue but pointed out the untapped potential for market stimulation through thoughtful adjustments. “The government has an opportunity to make a real impact in the Autumn Budget by increasing the SDLT threshold for first-time buyers. The Conservatives previously raised it to £425,000 in 2022, but it’s set to fall back to £300,000. If we can increase it above £425,000 and make it permanent, combined with lower interest rates and supportive mortgage schemes, this could breathe new life into the residential market,” Steve asserted.
Steve’s passion for creating diverse and inclusive housing developments was evident as he delved into the need for affordable and sustainable homes. He suggested removing the requirement to deliver First Homes and instead focusing on multi-tenure sites with a significant proportion of affordable housing. “We need to think beyond just one type of home. The October Budget offers a chance to review grant funding for affordable homes and provide incentives for projects that include a high percentage of such homes,” he said, his voice steady and convincing. “Local authorities should expedite processing for these projects and place an emphasis on homes with an Energy Performance Certificate rating of Band A, using modern construction methods like timber frames.”
The topic of rent controls brought a thoughtful pause to our discussion. Steve pointed out that the ambiguity surrounding rent controls could hinder the affordability and feasibility of mixed-tenure developments. “The government’s position on rent controls needs to be clear. Ambiguity is a major blocker for developers. If we are to deliver the 1.5 million homes promised over the next parliament, we need a consistent and transparent policy framework,” he stated firmly.
Our conversation then shifted to the vital need for a skilled workforce to meet the ambitious housing targets. Steve underscored the importance of a well-trained workforce and the necessity for investment in training programmes. “The government must announce a comprehensive plan to train more people in the construction industry. This includes investing in training programmes and fostering strong partnerships between local authorities, developers, and housing associations,” he emphasised. “Engaging local communities early in the planning process through public consultations and leveraging social media can also help in garnering support and addressing concerns effectively.”
As our discussion drew to a close, it was clear that Steve Cresswell is deeply committed to the future of housebuilding in the UK. His insights shed light on the multifaceted approach needed to achieve the government’s housing ambitions. The next 100 days are crucial, and with the right support and policies in place, the industry stands ready to deliver. “We’re excited and ready to build the homes that Britain needs,” Steve concluded, his optimism unwavering. “But we can’t do it alone. We need the government’s support to create a conducive environment for growth and innovation in the housing sector.”
Leaving Chartway’s offices, I felt a renewed sense of hope for the future of housing in the UK. With leaders like Steve at the helm and a collaborative approach between the government and industry, there’s every reason to believe that the ambitious housing targets can be met, paving the way for a vibrant and inclusive housing market.
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