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Boulger slams 20pc first-time buyer discount

Robyn Hall

September 29, 2014

Last week Prime Minister David Cameron told the Daily Mail that should he win the next election the Conservatives will build 100,000 discounted homes targeted at first-time buyers under 40.

Boulger said: “I think the big problem is that the government is dealing with the symptoms rather than the problem.

“It’s a sub-optimal solution in my view. If you build up enough properties then you solve the problem.

“For me this is fiddling at the margins. We need something to encourage more housebuilding and this is not the way to do it.”

Boulger added that some planning regulations, including the Community Infrastructure Levy, are vital, meaning taxpayers will have to fork out the money if both developers and buyers are exempt.

He also questioned how far the plans could boost supply.

Boulger said: “Last autumn some of the major builders highlighted how there was a lack of bricks, so even when demand is there, there is a limit to how much you can increase supply.

“If there is already a problem in expanding house building homes that were going to be built anyway will be built using this scheme.”

Boulger also felt such a scheme would create a strong divide between have and have-nots.

He said: “The government said houses have got to be zero emission by 2015, so it creates a two-tier market.

“Either the government believes these in regulations or doesn’t.

“This is not a very clever way to reduce the price.”


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