Affordable Homes in London Pressurized by Budget Cuts

An industry analyst today cautioned that social housing cuts looming this week could severely hit the Housebuilder Galliford Try. Galliford Try is deemed to be the bigger player in the sector.

The stringent cuts yet to be introduced to the £8.4 billion budget are likely to shut the construction of affordable homes in London and the South-East, the National Housing Federation warned.

The NHF has outlined that midst of the soaring pressure on the nation’s housing capacity only 243 affordable homes would be constructed in London and the South East as the amount of new money would is very less.

Panmure Gordon analyst Mark Hughes posted that a majority of top housebuilders of the area were highly dependent on the social housing budgets.

It is reported that affordable housing attributed to over 15% of business at Barratt Developments, while social housing accounts for nearly £50 million of its £1.2 billion revenues.

The budget cuts are likely to take away more jobs in an industry witnessing its tough times since the 1920s, cautioned construction Products Association economics director Noble Francis.

He questioned, “If you are a housebuilder at the moment what incentive is there to increase capacity when you have an uncertain private housing market and the public budget is being slashed?”