Lewis: million homes ‘was never a target’

In the aftermath of the vote to leave the EU, the housing minister said delivering one million homes was still achievable. But he denied the figure was a “target”.

“I don’t set targets, I never set a target,” Mr Lewis told delegates at Housing 2016, appearing via video link from London.

However, writing for Inside Housing last week, he warned it would be difficult to “continue towards our target of one million new homes” if the UK left the EU.

Mr Lewis also reaffirmed his commitment to build 200,000 Starter Homes by 2020, in spite of the fears surrounding the housing market and plummeting house builder share prices.

“Despite the challenges ahead, our manifesto commitments stay true. Our policy programmes to deliver those commitments carry on,” he said. “They include delivering 200,000 Starter Homes by 2020.”

In the wake of the Brexit vote last week, housebuilder shares fell 40%, due to market uncertainty, with volatility continuing this week.

The housing minister’s address came just hours after Moody’s had moved the credit outlook of the housing association sector to negative following the referendum result.  

Mr Lewis urged the housing sector to “keep calm and carry on” in the wake of the referendum result.

He said that housebuilding had picked up since the 2008 financial crash and “we can certainly get through the current turbulence”.

The minister claimed the sector was “in a healthier state than it was back then [2008].”

Mr Lewis said: “The overall [referendum] result was clear and must be respected. It is important to understand that - as the PM has said - there will be no immediate changes.”

Mr Lewis also said he would come forward shortly with measures to make sure that groups could not “abuse” the extension of Right to Buy discounts to housing association tenants.

Last week Inside Housing revealed 16% of sales under the revamped Right to Buy had been to tenants on housing benefit, raising fears of fraud.