Housing needs planning reform and a minister

The General Election feels a blur in the past yet only really six weeks ago. Throughout the campaigning there was a lot of talk about housing and coinciding with that there was a need to reform the planning system to make housing easier to deliver. This however was not high on the agenda with much focus on the need to build 200,000 new homes in one shape or another. But is the need to reform pushing higher up the agenda now whether the political system likes it or not.

 

Over recent weeks however there have been a number of points made which potentially mean we are unlikely to see much change. Greg Clark, Secretary of State for Communities, is now running the show and has called in his first planning application already for King’s College’s plans to revamp its campus on the Strand ultimately meaning delay to this scheme. This is following Danny Finkelstein signalling a period of stability in planning. Makes no sense to me, the people who use the system say it is failing, politicians seem to think it is failing yet no changes are planned despite a clear vision by everyone to increase housing. I can think of two examples of schemes that on paper should be a sure win for development yet they have stalled at planning with no light at the end of the tunnel to kick off.

 

So is it me or do politicians not realise that to increase house supply you have to speed up planning – they go hand in hand. The lack of supply is adding to the cost of buying a new home – one big circle that if more houses aren’t built the cost of those around increases. This problem is clear in London where lower-earning employees are being priced out of the market but this is also spreading to the regions.

 

The UK’s housing problem is just that, a problem. Does the industry think the conservatives will deliver the 200,000 start homes by 2020? I think the vast majority don’t unless things change. There seems to me to be three options of who should lead the provision of starter homes with central and local government being at the top of the list followed closely by housing associations.

 

There is a clear decision needed on should PRS be increased. We have seen so much institutional investment in PRS over recent times (mostly in London) but is it the way forward? Europe is more of a renting nation than the UK which historically has been a home owner’s nation. As a home owner I like the fact that I can come back from work to my own home and build a future there. That’s me and I’m not saying it is for everyone but the current government policy would be inclined towards home ownership, for example right to buy scheme.

 

So where next – well the UK needs a housing minister. It has been way too long since we did but for people to really think housing is high on the agenda then there needs to be someone in the Houses of Parliament shouting for housing reform. Secondly a clear plan of attack for achieving the housing targets, I’m not 100% sure about Tony Pidgleys plan to restructure the greenbelt but he does raise valid points that greenbelt has to been green – if it isn’t then why is it protected.

 

Feel free to contact me 0113 288 2276 or lee.a.wilkinson@uk.pwc.com if you wish to discuss this blog or anything relevant to property and construction.

Enjoy the weekend

Lee