By James Carson
After a delay of several months, the government’s housing white paper was finally published last week. Its title – “Fixing our broken housing market” – makes clear that England’s housing market requires radical reform. The communities secretary, Sajid Javid underlined this when presenting the paper to MPs:
“We have to build more, of the right homes in the right places, and we have to start right now.”
The key proposals
The white paper contains 29 policy proposals. These include:
- developers will be forced to use-or-lose planning permission within two years
- local authorities will be required to keep an up-to-date local plan to meet housing demand
- an expanded and more flexible affordable homes programme, for housing associations and local authorities
- developers will be encouraged to avoid “low-density” housing where land availability is short
- the time allowed between planning permission and the start of building will be reduced from three to two years
- incentives for build to let
- the Green Belt will continue to be protected, and may only be built on “in exceptional circumstances”
In addition, the paper proposes the establishment of a £3bn fund to help smaller building firms challenge major developers, and a “lifetime ISA” to help first-time buyers save for a deposit. The white paper also confirmed government plans to ban letting agency fees for tenants.
The paper proposes placing a cap of £80,000 (£90,000 in London) on starter homes (new-build homes for first-time buyers between 23 and 40 years old and sold at least 20% below market value). And it signals that 10% of all new homes should be starter homes (the current requirement is 20%).
Reaction to the proposals: the politicians
The communities secretary described the white paper’s proposals as “bold” and “radical”, but some responses have suggested that the new strategy will fail to meet the challenge of England’s housing crisis.
Describing the plans as “feeble beyond belief”, Labour’s shadow housing minister, John Healey observed: “This white paper is not a plan to fix the housing crisis. And it will do nothing to reverse seven years of failure on housing we’ve seen since 2010. There are 200,000 fewer home-owners, homelessness has doubled, and affordable house-building has slumped to a 24-year low.”
The Green Party’s co-leader Jonathan Bartley said the policies were a “slap in the face for the millions of people in this country desperate for bold plans to reduce rents and make their housing affordable”.
On build to rent, Tom Copley, Labour’s London Assembly housing spokesperson welcomed the shift in focus from home ownership, but was concerned about the scope of the proposals: “…whilst the promise of longer tenancies is welcome, its bearing will be miniscule unless it is extended to existing rental properties, where the vast majority of renters actually live.”
Reaction: architects, housing bodies and builders
Simon Henley, of architects Halebrown, welcomed the paper’s proposals to help smaller building firms challenge major developers – “More and smaller housebuilders will bring variety and inspiration.” But he added that “reasonably priced land is vital to the equation for great homes.”
Alex Ely of the Mae architecture practice was disappointed with the continuing restrictions on building on the Green Belt, observing that “We know that just a 1km ring of Green Belt from inside the M25 would yield enough land for a generation of building at current rates.”
Terrie Alafat, chief executive of the Chartered Institute of Housing said the package of measures demonstrates a commitment to tackle the housing crisis. “However our concern is that much housing remains out of reach for a significant number of people and we would like to see the government back up the package of measures with additional funding and resource in the budget.”
Stewart Baseley, executive chairman of the Home Builders Federation welcomed plans to bring forward more developable land: “If we are to build more homes, we need more land coming through the system more quickly.”
Reaction: homeowners and renters
Dan Wilson Craw, director of Generation Rent argued that the white paper failed to offer renters anything of substance. “Renters on stagnant wages need homes that cost no more than a third of their income, not ones let at 80% of the market rent, with a sticker that says ‘affordable’.”
Meanwhile, Paula Higgins, chief executive of HomeOwners Alliance, called for more action and fewer words. “It’s difficult to see how these measures will enable the government to meet its target of one million new homes by 2020.”
Reaction: the LGA and Shelter
Speaking for the Local Government Association (LGA), housing spokesman Councillor Martin Tett noted that the white paper contains signs that the government is listening to councils on how to boost housing supply and increase affordability. But he called for more support to enable local authorities to tackle the housing shortage: “…councils desperately need the powers and access to funding to resume their historic role as a major builder of affordable homes. This means being able to borrow to invest in housing and to keep 100 per cent of the receipts from properties sold through Right to Buy to replace homes and reinvest in building more of the genuine affordable homes our communities desperately need.”
Writing on the organisation’s blog, Shelter’s Steve Akehurst described the white paper as a step, rather than a leap in the right direction:
“Overall, the shift in emphasis – towards tackling big developers and dysfunctions in the land market, towards making renting more stable, and delivering more affordable homes – is really welcome, and there are some good first steps to making them a reality. In reality more will be needed to deliver upon these lofty ambitions in full… But today is a good start.”
The next steps
The government is consulting on the planning proposals set out in the first two chapters of the white paper, with a closing date of 2 May 2017. After considering the responses, the government will decide on how to take its strategy forward.
As the paper concludes, millions of people who can’t afford to buy or rent already know that the housing market is broken. Fixing it will be a job not only for the government, but for local authorities, developers, housing associations and local communities.
Time will tell whether the proposals set out in the white paper are radical enough to help the homeowners and tenants of tomorrow.
You may also find these blog posts on housing of interest:
Pingback: Europe’s housing time bomb: a new report highlights the millions affected by housing exclusion | The Knowledge Exchange Blog