As both developers and lenders know, quantifying build costs in the current climate is not an exact science. Indeed, with current volatility, its almost impossible. To add to this, it is reported today that the Treasury is considering proposed increases in enviromental taxes paid upon the disposal of soil and rocks. Currently, developers pay £4.05 a tonne, with increases over the next 5 years taking this to £126 a tonne. Of the 19.1 million tonnes of waste put into landfill last year, about 14.4 million tonnes either paid the lower rate or were deemed exempt. If all that waste paid the new rate, it would bring in an additional £1.8 billion per year when it is phased in by 2030. A study by the Home Builders Federation of more than 8,300 homes currently in construction found that if the new charges had been in place, the average additional cost per home would have been £15,000. However, some sites with challenging topographies would have seen costs go up by more than £50,000 per home. It calculated the additional cost of building the 8,300 homes would be £121 million, warning that many sites would become unviable. The study added that the policy would particularly affect the viability of brownfield sites where existing construction materials often had to be removed before building could start. I am not sure how this fits in with the Governments stated aim of "Build, baby, build". I feel we are never more further away from building the homes we need, and the Government aspires to, than we are right now.

Posted by Matt Anderson at 2025-10-20 15:14:12 UTC