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Solving Britain’s Housing Shortage

The UK is suffering a housing shortage that has been 20 years in the making. The waiting list for public and affordable housing stands at 1.2 million alone. UKIP will provide high quality, affordable homes, with security of tenure, where they are needed, while boosting jobs.
Successive governments have failed to meet the housing needs of an increasing population. Of the 140,000 homes due to be built this year, 80,000 will be absorbed by population growth, exacerbated by immigration, so at best only 60,000 will begin to address the current  chronic shortage.  
Labour, the Conservatives, and other parties in this election will promise to build hundreds of thousands of new homes, but their plans are not credible. There are not enough workers in the traditional construction industry to meet their targets. Planning permission remains slow and difficult to obtain and developers have no incentive to build more, because under-supply boosts their margins and land bank values.  
UKIP is the only party being realistic about what can be done to increase the housing supply and putting forward a viable solution: a bold policy to roll out high quality, low cost factorybuilt modular (FBM) homes, affordable on the national average wage of £26,000. 
LOCALLY MANUFACTURED  FACTORY-BUILT MODULAR HOMES Factory-built homes should not be confused with the pre-fabs of the past. They are built to last, to high design standards, and are energy efficient, with running costs up to 30per cent less than traditional homes. While conventional construction cannot in the medium term meet the need for low cost housing, factory-built modular homes can. 
When we leave the EU, we will regain control  of the regional development budget, over  £1 billion a year. UKIP will use some of this to boost capacity in UK-based modular homes manufacturing. We will enable the manufacture of modular homes where jobs are needed, and they will be built where homes are needed. 
UKIP’s housing policy provides a solution to the housing crisis, which requires no direct funding from government, and is not constrained by the current skill-shortage in the construction industry. It is a radical and visionary plan. Finally, our young people will be able to afford  their own homes.
HOW UKIP’S MODULAR HOMES BUILDING SCHEME WILL WORK UKIP will establish a Housing Development Corporation (HDC) to acquire primarily brownfield sites – at existing use value and through compulsory purchase if necessary – where affordable housing is required. Planning law will be changed to enable the HDC to give themselves planning permission to build between 10 and 100 FBM homes on an average site. 
Homes constructed will be sold on a freehold basis to first time buyers up to the age of 40 who are British citizens and who have a 10 per cent deposit. We anticipate the total cost for a two-bedroom house will be under £100,000, including land purchase and restoration, construction, infrastructure and a contribution to the costs of the HDC. Utilities installation would be covered by a 1per cent energy bill levy, and Stamp Duty would not be applied.
UKIP’s proposal will bring up to 100,000 extra truly affordable homes onto the market every year. Combined with a traditional home building programme, we could build another one million homes by 2022. In addition, the FBM model would also make it feasible to deliver substantial numbers of new Council houses that have been promised, while traditional methods do not.
RESTRICTIONS ON USE  AND RESALE As this scheme is a steppingstone from the rental sector to traditional home ownership, to address the current housing crisis, it must not distort the existing property market. So, homes will be for owner occupation, not private rental. 
Owners will not be able to sell them them on the open market, but must sell them back to the HDC at a guaranteed price of cost plus inflation over the period of ownership. Ownership can, however, be retained indefinitely.
THE HOUSING CRISIS SOLVED UKIP’s modular home  scheme provides:  
• High quality homes with security of tenure, where they are needed
• A way for the next generation to build up equity and move into the traditional home owner market
• A realistic way of building homes that is not constrained by the current skills shortage in the construction industry
Words and gimmicks from the old political parties will not solve the housing crisis. UKIP’s bold plan will. 
GOING OVER AND ABOVE In addition to our FBM homes programme, UKIP will identify long-term dormant land held by central and local government so it can be released for affordable developments. We will also plough all revenue raised from Right to Buy sales into community housing and change the law to allow mortgages to become inheritable, as they are in other countries. 
A REVIEW OF HOUSING ASSOCIATIONS Housing associations are accountable neither to taxpayers, who provide much  of their funding, nor to their  own tenants. 
A UKIP investigation into the largest 50 housing associations uncovered a catalogue of failures. They are not building as many homes as private developers, the homes they do build cost more to put up, and they are failing to tackle anti-social behaviour. Average salaries for chief executives reach 51 times their tenants’ rent: one CEO is paid three times as much as the Prime Minister.
Housing associations manage 60 per cent of the socially rented sector and have received £23 billion of Government funding in the past 14 years, but UKIP is not convinced they are benefiting either tenants or the taxpayer. We will launch a review into their operation.