Executive chairman of TDR Capital-backed modular housebuilding pioneer says UK housing needs supply-side intervention

Dave Sheridan, executive chairman at TDR Capital-backed modular housebuilder ilke Homes, said:

“The Government’s proposed extension to Right to Buy is a short-sighted response to housing supply logjams. Yet, with only 5 per cent of the 2.6 million sold under the scheme having been replaced since it was originally launched in the mid-eighties, it is clear the structural issue with UK housing is still supply – as it has been for the last three decades.

Many housing associations have long-term development finance deals relying on private rental income to offset debt repayments and inflationary pressures. Altering this already ailing ecosystem with demand-side intervention risks causing mass disruption throughout the housing market and further jeopardises the future development pipeline. Therefore, extending Right-to-Buy to housing associations will prove both a costly affair and take years to implement – far from the short-term solution it’s being positioned as.

The only way to level the playing field is to promote supply-side intervention and expand infrastructure to support this. Rapidly mobilising innovative solutions like modular construction across the country will produce energy-efficient homes at pace – a cost-efficient solution to dwindling home ownership that stands the test of time.”