Conservative shadow chancellor Andrew Griffith has announced that if his party were to return to power, they would aim to reduce the cost of building a new home in England and Wales by £50,000. This reduction would be achieved by cutting back on various regulations.
The £50,000 figure, as claimed by Griffith, reflects estimates from the housebuilding industry regarding the costs associated with new regulations and taxes. The Conservatives specifically cite the Community Infrastructure Levy, the Future Homes Standard, and Section 106 as regulations they would scrap or reform.
However, construction and housing experts have cautioned that some of these potential savings could ultimately result in higher government expenditure on essential services like schools, roads, and affordable housing. Additionally, some analysts suggest that Conservative plans to remove environmental regulations could potentially lead to increased household energy bills in the future.
The Home Builders Federation (HBF) has estimated that new regulations, taxes, and inflation since 2020 have increased the cost of building a new home in England and Wales by £76,000. Excluding material and labour cost increases, the HBF estimates regulations and taxes have added approximately £42,000. The Conservatives' estimate is slightly higher than the HBF's figure.