Keepmoat Homes Annual Report 2021

CHIEF EXECUTIVE

CHIEF EXECUTIVE OFFICER’S STRATEGIC REPORT 22 KEEPMOAT.COM

STRATEGIC REPORT Government commitment to housing supply The Government has continued to demonstrate its commitment to home ownership with the launch of the First Homes scheme, in support of first-time buyers and key workers, with a discount of at least 30% on the purchase price of their new homes. Help to Buy continues to help first time buyers but will end in April 2023. Industry backed alternative schemes are being trialled, including a guarantee scheme for 95% mortgages, Deposit Unlock, launched last year. Levelling Up has also emerged as a central pillar of the Government’s domestic agenda and, as a business with larger presence in the North, we were pleased to see this policy reflected in a redirection of the Affordable Homes Programme away from London and towards markets where it can deliver more homes with more space. However, alongside these positive housing policy announcements there was also the introduction of a series of measures that will impose costs on the industry, including the confirmation of a Residential Property Developer Tax aimed at volume housebuilders and set at 4% on profits over £25 million. The new tax is due to take effect in April 2022, with the revenue it generates directed towards the cost of removing unsafe cladding from high-rise buildings. Other policy announcements focused on biodiversity, energy efficiency, ventilation, overheating and accessibility standards. We also welcomed the Government’s continued focus on bringing forward brownfield land, and we believe our work with local authorities across the UK, including in Newcastle, Leicester, Nottingham and Glasgow, provides model approaches for others to follow. For example, through our partnership with Newcastle City Council, our scheme at Scotswood will deliver over 1,100 new homes over the next 10 years. People now recognise the importance of having their own private space to live, work, exercise and relax. Reducing carbon emissions for new build properties is high on the Governments agenda for the decarbonisation of the UK economy and to meet the UK’s target to become net zero by 2050. In January 2021 the Government consulted on an interim uplift to Part L of the Building Regulations which as an interim step will require a 31% reduction in carbon emissions over current regulations. The proposed Future Homes Standard, which is in the early stages of consultation, is expected to extend this requirement to ensure all new homes reduce their carbon emissions by at least 75%, through low carbon heating and “world-leading levels of energy efficiency” by 2025. ANNUAL REPORT & FINANCIAL STATEMENTS 2021 23