Industry gives Boris Johnson’s victory a cautious welcome

The housing industry and the wider construction sector gave a cautious thumbs-up to Boris Johnson’s Conservative party leadership victory and promptly presented the UK’s next prime minister with a “shopping list” of likely policy moves. 

With a nod to Johnson’s sideline career as a journalist Brian Berry, chief executive of the Federation of Master Builders, said: “Boris the builder must build columns instead of writing them if he is to fix the housing crisis and restore the hope of home ownership to a generation.

“We will only reach the number of good quality homes we need, and at the rate we need them, if local house builders are freed up to build as many homes as the large house builders.”

Berry also called on the new prime minister to take a set of shears to VAT on repair and maintenance works, a challenge set earlier this week in a new report co-written by of Johnson’s allies, Jacob Rees-Mogg.

“We want to see Boris bring down the barriers facing construction SMEs, including those who repair and maintain our homes,” said Berry.

“If Boris is looking to cut taxes, then we suggest slashing VAT on home improvement works, as nine in 10 builders believe this is the single best tool in Boris the builder’s toolkit to prevent an economic downturn post-Brexit.”

RIBA president Ben Derbyshire said the no-deal Brexit touted by Johnson during the leadership campaign would prove to be a disaster for the development industry “and homebuilding especially, with massive disruption to finance, the supply chain and movement of labour.

“There is very little that either Michael Gove or Zac Goldsmith, both tipped for environment secretary, could do about that. But one might hope that either of them could make something of the proposed New Homes Standard, which needs to be a new zero carbon standard for all homes, not just new ones,” Derbyshire added.

Derbyshire’s colleaguea the RIBA, chief executive Alan Vallance called on Johnson to urgently speed up reform of building and fire safety regulations following the Grenfell Tower fire, which took place more than two years ago with loss of 72 lives.

“The prime minister must strengthen and expand requirements to ensure all our buildings are safe,” Vallance said.

Mark Robinson, chief executive of Scape Group, said Johnson’s promises throughout the campaign – more police on UK streets, more money for education, an increase to the national living wage, all while delivering ‘great infrastructure’ projects – showed his undeniable ambition.

“But this would all be delivered against a backdrop of Brexit and tax cuts to individuals and corporations. The economics don’t match-up and something is going to have to give, and I don’t see it being the tax breaks.

“Latest data from the construction industry shows that output is slowing down and on the ground projects are not being pushed forward by either the public or the private sector. The country would benefit from certainty and crashing out without a deal isn’t going to provide this,” Robinson said.

Johnson, who as London mayor was regarded as being developer-friendly, will doubtless have his hands full with Brexit, agreed Marc von Grundherr, director at estate agency Benham & Reeves, and any promises made around housing delivery might be less than forthcoming.

“The only reassuring thing is, that despite the absolute spectacle that Brexit has become, the housing market remains resolute and for those with concerns over our new prime minister, you might even go as far to say that it’s Bojo proof.

“Mortgage rates will continue to be favourable for those looking to buy, transactions are fairly steady considering, and property values are far from tumbling, so we should see the market strengthen as the year goes on,” Von Grundherr added.