BMF says first-time buyer scheme could boost housebuilding supply chain
The Builders Merchants Federation (BMF) has said the Government’s proposed Your First Home scheme could provide a boost to housebuilding and demand for construction materials.
The trade body said the decline in new home construction over the past four years has weighed on demand across the building materials sector, with 18 BMF members going out of business in the past 12 months and 1,197 jobs lost.
The BMF has been calling for measures to stimulate the housebuilding market since the general election.
First-time buyer scheme targets housebuilding demand
The BMF said it would assess the full details of the Your First Home scheme when they are announced by Chancellor John Healey in next month’s Budget.
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It will also examine the impact of the proposals on Scotland and Wales.
BMF chief executive John Newcomb said: “We are currently in a four-year decline which has been deep and long.
“We wait to hear about the exact details of this scheme, but it’s been clear that for too long house building has been stagnant, and help is needed to rebuild confidence.
“Construction is a vital element of the UK economy, and one that has a massive impact on the nation’s financial position.
“The BMF has pressed for a stimulant for first-time buyers to be introduced, and it’s good to see that the Government is finally listening.”
Building materials sector hit by fall in new homes
The BMF said the reduction in housebuilding activity has had a significant impact on demand for building materials.
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The federation reported that 18 of its members had ceased trading over the last year, with the resulting job losses totalling 1,197.
It said the latest stimulus measures would need to be assessed against the wider conditions facing the housebuilding market once further details are published.
Manufacturers prepare for potential housebuilding increase
BMF manufacturing members have allocated almost £1.2bn through to 2029 to expand capacity and capability across factories, production lines and manufacturing processes.
The investment is intended to increase the sector’s ability to produce the materials and products required to support increased housebuilding.
The BMF said it would continue to assess the Government’s housing measures as further details of the Your First Home scheme emerge.
