Insurance News Archive

Contractors insurance: Green targets 'holding back house building'

Written by Jonathan Walker

Green targets are holding back house builders as the additional costs cause financing difficulties for contractors insurance holders, according to an expert.

Brian Berry, director of external affairs at the Federation of Master Builders, said that the government's plans for all new homes to be zero carbon from 2016 are adding £30,000 of costs onto each new property.

"That's at a time when housebuilders are struggling to build any homes at all," he explained.

Lack of mortgage liquidity is also proving a problem for contractors insurance holders as there is a reduced demand for homes, according to Mr Berry.

He added that the government is not instilling confidence in the housing market, despite the millions of pounds it has pumped into the banking system.

His comments follow figures from the Department of Communities and Local Government, which show that seasonally-adjusted housing starts in England were up by 63 per cent between April and June compared to the previous quarter, but down by nine per cent from the same period in 2008.

24 Aug 2009