MIPIM UK 2015: Stamp duty and other regulatory burdens on the prime London market have hurt affordable housing provision, delegates at MIPIM UK heard today.
Nick Candy, chief executive of Candy & Candy, said that higher stamp duties have slowed down the prime market, and while there is little developers can do about that, it is in the governments power to help us build more homes.
“At the end of the day super prime and affordable housing are linked – when something gets built, you have to supply affordable homes or payment to the council,” said Candy.
Bruce Ritchie, chief executive of Residential Land said: “I believe they are inextricably linked, super prime and affordable housing.
“The point relevant here is a balance: what the government needs to take out of a booming residential market, and what they need to do with that money.”
“It’s interesting that in a government that wants to create new homes, it is taking money out of the residential market.”
The panelists also said that the ripple effect that has spread out from prime central London has been important in making development across London financially viable, again leading to more homes.
Stephen Howlett, chief executive of Peabody, agreed, though said that well the two are inextricably linked, they must exist side by side.
“Super prime and social housing are interlinked. But it’s really important that side by side with London’s prosperity the people that aren’t so well off are well looked after.”
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