Government won’t hit 1.5m housebuilding target, Hill Group boss says

The founder and chief executive of one of the UK’s biggest housebuilders has poured cold water on the government’s plans to build 1.5m homes during its first term.

“I don’t think they’ll be able to do it… It’s going to take time to build up,” Andy Hill told the Sunday Times in an interview.

The new government has pledged to build the equivalent of 300,000 homes per year over the course of this parliament, a figure not achieved for over half a century and far higher than a 30-decade average of 160,000.

However, Hill, who founded Hill Group in 1999, does not think the target is impossible.

“If people thought about it and planned it more strategically, they could be well on the way,” he said, adding the government “ought to be looking at getting beyond 300,000 for the next term.”

However, he warned the scale of such work would put significant strain on Whitehall coffers and require large taxpayer subsidy.

“It’s going to cost a lot of money, too, because you still need the public subsidy to deal with affordable housing,” he said.

“There’s more and more private organisations coming into it, but they still rely on getting grants through Homes England [the government’s housing and regeneration agency].”

It will also be hamstrung by problems with the UK’s planning system, which has long been hampered by red tape and barriers at the local authority level, such as highly demanding conditions to build.

“There are a lot of planning permissions for new homes, but a lot of them are never going to be built because they’re in the wrong places. They’re on sites that are not viable,” Hill said.

Hill has led his firm to second on the list of the UK’s largest privately run housebuilders. The Essex-based company made a record £1bn in turnover last year, alongside around £70.1m in profit.

The Ministry of Housing, Communities and Local Government has been contacted for comment.