And housing experts believe that government policy objectives such as zero-carbon homes, new affordable housing and community infrastructure projects – once funded by private builders – are all under threat.Later this month a crisis inquiry will be held by the Department for Communities and Local Government into the impact of the credit crunch on the housing market. According to the Department for Communities and Local Government, the previous record annual decline was 10% in 1932.
The HBF argues that falling land values will jeopardise affordable and social-housing development, community infrastructure projects and government targets to make all new homes zero-carbon.
It estimates that the cost of achieving these government policy objectives adds as much as £2.9m a hectare to residential development costs.
