Can they fix it? MPs have launched an inquiry into the housebuilding industry and the UK's housing crisis

 
Helen Cahill
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MPs are finally looking to fix imbalance between supply and demand in UK housing (Source: Getty)

MPs have started an inquiry into the UK's embattled housebuilding sector, seeking answers on why supply cannot keep up with demand to produce the homes the country needs.

The Communities and Local Government (CLG) committee will be calling the chief executives of major developers to give evidence on the industry's capacity to build after figures released yesterday showed construction hit a seven-year low before the EU referendum.

Read more: Housebuilders' share prices drop after "dire" construction data released

The committee will also ask for evidence from ministers, representative of industry bodies, local authorities and housing associations.

CLG committee chair Clive Betts MP said: "The capacity of the homebuilding industry is a key factor in housing supply, which is simply not keeping up with demand and has left us in the midst of a crisis.

"The committee will cast a critical eye over the major homebuilders, examine the decline of small and medium-sized developers and look closely at the skills shortages, planning delays and finance issues hampering the industry.

Read more: Housebuilders suffer second day of share price falls in a row

"Our wide-ranging inquiry will also explore alternative models, such as self-builds and off-site construction, to see if such innovative approaches to homebuilding can help address the country's housing needs."

The seven-year low in construction has sparked a sell-off in commercial property and housebuilding stocks - housebuilders are now suffering a second day of share price falls in a row as the Brexit vote casts a shadow over the industry.

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