Friday, 17 July 2015

What can be done about housing?


It is no surprise that at the beginning of tenure is the best time to make changes and the government has the opportunity to really do something about housing. The manifesto and discussions since have made it clear housing is on the agenda but without the housing bill we lack the full detail. Brandon Lewis, having been reappointed, does give some stability to the industry but even more need for a quick action plan.

So where should the top team be focusing its efforts? With the introduction of the NPPF and the economic recovery, the level of outline consents granted is already running at around 240,000 homes per year, nearly double the actual number of homes being completed. However, the challenge is turning the outline consents into actual homes. Surely this can only be addressed with wholesale changes to the complex planning system.



The government can tackle certain areas that will help housebuilders deliver more but they will need to take bolder steps on housing delivery, such as re-appraising parts of the green belt. Any changes to the green belt will be unpopular but why can’t England follow the approach taken north of the border where green belts are reviewed every time the local plan is reviewed. Yes let’s focus on redeveloping brownfield but we can sensibly look at green belt.



On social housing we heard a pledge of 275,000 homes over five years which is better than a kick in the teeth but given the tight constraints on funds will there be sufficient funding and while you are building the “right-to-buy” scheme means housing association stock could reduce with tenants taking advantage of low mortgage rates. On top of social housing, a further 200,000 starter homes for which there is little more detail.



Radical changes are needed. We seem to live in a society where the middle class have been priced out of the market – how can it be right that those on the dole get more? The introduction of a national housing target (rather than simply talking about it), and draw up an implementation plan to meet it. What is this number? Well widely believed that 200,000 is a good starter per annum. One that is opportunistic for all walks of life – SMEs, national housebuilders and housing associations. Draw on industry experience and public sector to ensure the plan benefits everyone and focuses on the community and please promote the housing minister to the cabinet and make them accountable.



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


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