1.5m Homes to Get Britain Building

Angela Rayner  ‘Today marks a significant step to getting Britain building again.’   

The government has set out the tough decisions necessary to fix the foundations and grow the economy and the overhaul of the planning system that will facilitate it.

All councils in England are to be given new, mandatory housing targets to pave the way to deliver 1.5 million more homes – tackling the most acute housing crisis in living memory.

The new targets will mean councils must boost housebuilding in areas most in need, helping more people buy their own homes, removing the largest barriers to economic growth, and getting Britain building again.

The new rules set out today will reverse the decision last year to water down housing targets, by making them explicitly advisory, at a time when planning permissions were at a record low. The new approach reflects the level of ambition necessary to tackle the housing crisis and meet the government’s commitment to 1.5 million homes.

Supporting the government’s number one mission to grow the economy across the country, these new targets will flow into the development of local plans. It is through local plans that communities have a say in the building of the homes and infrastructure we need.

Currently just a third of councils have a plan that is under five years old, which is why government will take the tough decisions and step in where needed to drive progress, ensuring local areas get a say on how, but not if, homes are built.

The Deputy Prime Minister has written to every council Leader and Chief Executive in England to make clear that there is “not just a professional responsibility but a moral obligation to see more homes built”, and that she will not hesitate to use her powers of intervention should it be necessary – including taking over an authority’s plan making directly.

Deputy Prime Minister, Angela Rayner said:

“Today marks a significant step to getting Britain building again.

“Our decisive reforms to the planning system correct the errors of the past and set us on our way to tackling the housing crisis, delivering 1.5 million homes for those who really need them.

“And something I am personally proud of, our new flexibilities for councils will boost the number of social and affordable homes, and give working families a better route to a secure home.”

In addition to restoring mandatory housing targets, the method used to calculate them, which relied on decade old data, will be updated. The new method will require councils to ensure homes are built in the right places and development is proportionate to the size of existing communities, while adding an extra level of ambition in the most unaffordable areas.

The first port of call for development will be brownfield land. Reforms announced today will make explicit that the default answer to brownfield development should be “yes” and promote homebuilding at greater densities in urban centers, like towns and cities.

To help deliver 1.5 million homes over the next five years, councils will have to review their green belt land if needed to meet their own target, identifying and prioritising ‘grey belt’ land, which the government has today set out a definition for. This includes land on the edge of existing settlements or roads, as well as old petrol stations and car parks.

The update will make clear the requirement for councils to consider the proximity of new homes to existing transport infrastructure.

Where local authorities do not have up-to-date plans in place or enable sufficient housing to come forward to meet local targets, homebuilders can bring forward proposals on grey belt land. In all cases, land that is safeguarded for environmental reasons will continue to be protected.

Land released in the Green Belt will be subject to the government’s ‘golden rules’, which make clear that development should deliver 50% affordable homes, increase access to green spaces and put the necessary infrastructure is in place, such as schools and GP surgeries.

Alongside building the housing that we need, the government is committed to making it easier to build key infrastructure such as laboratories, gigafactories and data centres, as well as making changes to deliver more large onshore wind projects and solar development across the country.

In addition to these reforms to the planning system, the government is also taking steps to deliver quality affordable and social housing, working to reverse the continued decline in the number of social rent homes. This includes changes to Right to Buy, giving councils flexibility to use their receipts to build and buy more social homes. The government has started its review of the increased discounts introduced in 2012, with changes to be implemented in the Autumn.

The Deputy Prime Minister has also confirmed that details of future government investment in social and affordable housing will be brought forward at the next spending review, so social housing providers can plan for the future and help deliver the biggest increase in affordable housebuilding in a generation.

Responding to calls from the sector, the government has also confirmed that at the next fiscal event it will provide councils and housing associations with the rent stability they need to be able to borrow and invest in new and existing homes – while ensuring that there are appropriate protections for both existing and future social housing tenants.

INDUSTRY COMMENTS TO THE ANNOUNCEMENT

Nathan Emerson, CEO of Propertymark

“Propertymark is keen to work closely with the new UK Government to help ensure a balanced mix of housing is delivered across the next parliamentary term and beyond. Ensuring sustainable homes are delivered in key areas is paramount for the economy and it’s encouraging to hear Angela Rayners commit to an in ‘infrastructure first’ approach, and one that focuses on making full use of available brownfield and grey belt land where possible first.

“Propertymark has long called for an enhanced housing strategy to be developed and one that can deliver for generations to come, so it’s positive to hear this will become an integrated ambition moving forwards. It is essential housing supply has seamless continuity and keeps pace with demand, so the return of mandatory housing targets and a commitment to building a mixture of housing becomes a reality.

“Ultimately, future direction to deliver the 1.5m new homes promised must be driven by robust insight and delivered with precision with via close stakeholder engagement.”

Anna Clarke, Director of Policy and Affairs at the Housing Forum

“It is encouraging to see more detail following on from Labour’s pre-election pledge to reform the planning system and get Britain building. Setting an ambitious target of 370,000 homes, and working with councils to achieve this in their local areas, sets a clear direction from the top of government to those involved in delivering these homes.

An emphasis on social and affordable housing is particularly welcome, and funding is really needed here, alongside trying to get as much as possible when building on greenbelt sites. While we suffer a shortage of homes of all tenures, a lack of social housing is  having a particular impact, not least on the 105,000 households in temporary accommodation.

We look forward to working with government to fleshing out these plans further in responding to the consultation on the NPPF, which we will respond to on behalf of Housing Forum members.”

We are also very pleased to see reports in the press that the Chancellor will lift funding for affordable housing, and introduce longer term rent settlements. Anna Clarke, Director of Policy and Affairs said:

“This will be widely welcomed by housing associations and councils as security over their future income will enables them to plan, to borrow and to build new homes with confidence.”

Daniel Paterson, Director of Policy Make UK Modular

“Make UK Modular warmly welcomes the proposed changes that the Government makes to the National Planning Policy Framework today – they will help deliver more truly affordable homes across the country. The reintroduction and strengthening of housing targets and the firming-up of rules around green belt land is both overdue and necessary.

“Yet even with the creditable changes being proposed today, the UK will need to use every available tool in its box, including manufactured building techniques, to build sufficient truly affordable homes at the pace our nation so badly needs. We need a growth in manufactured house building if we are to address the growing chasm in available construction skills, reverse the impact of a collapse in the number of SME builders, and ensure that the homes we build today will not need retrofitting tomorrow.”