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John Armstrong Construction Employers Federation

John Armstrong Construction Employers Federation. Time for Developer Contributions?. John Armstrong Managing Director Construction Employers Federation. The Context: State of House Building. Source: Northern Ireland Housing Bulletin Q1 2014.

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John Armstrong Construction Employers Federation

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  1. John Armstrong Construction Employers Federation

  2. Time for Developer Contributions? John Armstrong Managing Director Construction Employers Federation

  3. The Context: State of House Building Source: Northern Ireland Housing Bulletin Q1 2014

  4. The Context: Challenges to House Building Recovery • Development loan hangover • Home owners locked in negative equity • Interest rate rises on the horizon • Reluctance of banks to lend for development • Turbulence as planning powers are devolved to the new Councils • Road and Water bonds are increasingly difficult to source and are tying up working capital • Legacy Article 40 agreements strangling development • Wastewater infrastructure that is nearing capacity in certain locations and no funding in place to increase capacity.

  5. The Aim: Improving affordability and housing supply • A shared aim. In partnership we can achieve it. • Housing units required per year = 12,700 • Housing units completed in 13/14 = 8,000 • Co-ordinated government policy required to facilitate increase in supply

  6. The Proposals: Construction Industry Perspective CEF Checklist • Principle  • Timing  • Mechanism 

  7. The Proposals: Construction Industry Perspective • Uncertainty • Impact on housing supply • Low delivery of social/affordable • Operationally cumbersome

  8. The Alternatives: Increasing supply of social and affordable housing • Focus on increasing supply overall • Ensure infrastructure is in place • Provide certainty – development plans • Incentivise mixed tenure developments

  9. The Summary: Not now. Not like this • House building sector yet to recover • Many obstacles to recovery remain • The current proposals are mistimed and unworkable • Working together we can increase the supply of all housing including social/affordable

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