Cluttons, the international property consultants and chartered surveyors, has today called on the Government to consider reviewing the new affordable housing regime.

Far from providing further social housing, Cluttons believes both private and public residential development is now nearly impossible under the new funding regime which has reduced the viability of many developments across the UK.

David Parry, partner in Cluttons’ Land and development division, speaking at the Cluttons’ seminar, said:

“With these latest changes, the Government has effectively jinxed the concept of private housing supporting the development of much-needed affordable accommodation. In many parts of the UK, the figures just simply don’t add up and developers will no longer be able to support the construction of social housing.

“We are in no doubt that it is a policy designed for much stronger economic times and is wholly unsuited when the economy is still wavering. Today, we are calling on the Government to reconsider these changes and consult with the industry once again about better funding arrangements.”

‘The Financial Noose on Residential Development’, Cluttons’ latest research paper published today, is available to download here.

The paper considers the various financial challenges which are facing residential development and examines how these have affected the market. The paper goes on to discuss potential routes which may help developers overcome the finance barrier.