No wonder Jennie Daly, chief executive of Taylor Wimpey, one of Britain’s biggest housebuilders, is calling on the government to help first-time buyers. Her call comes as the company’s sales have been faltering and its order book is shrinking. In recent months, Taylor Wimpey has experienced a dip in its sales figures, reflecting broader challenges within the housing market. Daly has expressed alarm at the pinch would-be homeowners are feeling. The end of the stamp duty holiday in March was the first time in sixty years that there has not been a targeted support scheme for first-time buyers.
Daly highlighted the effect escalating costs and regulatory burden are having on the housing industry. She cautioned that an overload of regulations might bog down the development of new housing. This is doubly concerning for communities that are economically disadvantaged. “We have to be careful about this accumulation of regulation,” she stated. Daly notes that numerous regulations increase desirable outcomes such as enhancing biodiversity and improving energy efficiency. When combined, these measures create an impossible equation to build any homes in the space between.
When you look at each piece separately, you start to realize the resulting boost in biodiversity. It’s great news, too, that in the process of doing so, our homes have become more energy efficient. If you add up all those things, the bottom line might indicate that constructing a new home is impossible. This cratering effect is a rather unfortunate outcome. said Daly.
In the midst of these challenges, Daly called on officials to bring back a property tax-reduction measure. He called for a help-to-buy equity loan scheme to introduce more flexibility for first-time buyers. She pointed out that with the support of an equity loan, a first-time buyer would only need a loan-to-value mortgage of 75% to 80%. This, combined with lower interest rates, would make it significantly easier for people to become homeowners. She added that there are “limited expectations” that these kinds of measures will be brought in the next budget, due November 26.
In light of the soaring energy costs, Taylor Wimpey is already doing its part. They are rolling out new technology, such as air source heat pumps installed in new loft conversions. A recent pilot in Sudbury trial demonstrated these positive impacts. As a result of these installations, their energy bills have decreased from £230 to £130 a month. Despite these initiatives, Daly noted a puzzling trend for which she’s been seeking the answer. Indeed, build costs have increased by about 20% in recent years due to escalating material and labor costs.
Daly underscored the need for government intervention given the current state of the economy. “It’s just the sheer level of uncertainty, and uncertainty for the individual, and a house purchase is a very big commitment,” she remarked. With shifting economic conditions and rising costs in nearly all aspects of life, many prospective buyers are understandably discouraged from entering the market.
Daly is particularly supportive of measures that focus on first-time buyers. She danced Labour’s new planning reforms, their transformative amazingness going in stunning wonderful work. These important reforms would help unblock the building of new homes and begin to level out housing supply with demand.
Taylor Wimpey wants to help first time buyers – with discounts of between 5% and 6% on the sale price. Daly worries that increasing regulatory costs will be felt the most in the more affordable markets. Incredibly, there’s rampant demand for housing there—but prevailing affordability is still the biggest hurdle. “In areas where people want to live but the prices are low, your ability to build reduces because you just can’t reach viability,” she explained.