A mixed reception for Labour’s housing green paper

 

In April, the Labour Party launched its strategy for tackling the housing crisis in England. Housing for the Many presents a 50-point plan, with proposals that include:

  • investing £4bn a year to build one million ‘genuinely’ affordable homes over 10 years
  • lifting of council borrowing caps
  • removing the ‘viability loophole’, making it impossible for developers to dodge their affordable housing obligations
  • zero tolerance of developments without any affordable housing provision
  • a stricter definition of affordable housing
  • scrapping the ‘bedroom tax’
  • suspension of ‘right to buy’
  • cut-price government loans for housing associations
  • protected housing benefit for under 21s
  • consideration of mandatory space requirements
  • a new generation of garden cities and new towns

Following its publication, analysts in the housing and property sectors gave their thoughts on the strategy.

More affordable homes

The most ambitious proposal is the plan to build 100,000 homes each year.

For Emily Williams, associate director at Savills, this proposal was the most eyecatching:

“The emphasis on investing to deliver more homes to solve the housing crisis, rather than relying on housing benefit to support people who can’t access market housing, is something we have been talking about for a long time.”

However, Savills estimates that the £4bn figure is insufficient for Labour to hit its one million homes target, suggesting that a further £3bn would be needed.

Elsewhere, Carl Dyer, partner in Irwin Mitchell solicitors expressed concern about where the money would come from:

“After Labour’s last 13 years in power from 1997 to 2010, their out-going Chief Secretary to the Treasury famously left a note for his successor: “Sorry, there’s no money”. There is still no magic money tree, and no indication here how these homes are to be funded.”

Developers

Labour’s policy of no development without affordable housing has raised concerns in the property industry.  Justin Gaze, head of residential development at Knight Frank told Property Week that the proposals risked deterring developers from undertaking new projects:

“There will be instances where affordable housing cannot be provided, for example on conversions of some buildings where it’s difficult to deliver both open-market and affordable housing side by side.”

The land market

One of the less reported proposals caught the eye of Luke Murphy, IPPR’s associate director for the environment, housing and infrastructure. Writing in CityMetric, Murphy highlighted the proposal to create an English Sovereign Land Trust that would allow local authorities to buy land at cheaper prices to build affordable homes.

“It is here, through intervention in the land market, that the state could have the biggest impact – not to just build more affordable homes, but to make all new homes built more affordable.”

But he argued there was still room for improvement:

“… on land reform, there is scope to be bolder and go further to ensure that affordable housing really is available ‘for the many’, rather than the preserve of the few.

Redefining affordability

The Royal Institution of Chartered Surveyors (RICS) commented on Labour’s proposal to redefine affordable housing to relate it to average incomes rather than housing as a percentage of market rates:

“This makes sense as a measure of affordability, however, this will likely lead to a trade-off between affordability and the numbers of affordable homes delivered, unless capital grants are available at the outset, geared to the income segment to be accommodated.”

RICS also welcomed the plan to lift council housing borrowing caps.

“This is certainly something RICS has been calling for, however appropriate measures must be taken to ensure that local authorities do not expose themselves to too much risk.”

Benefits reforms

The Chartered Institute of Housing wondered whether Labour would reform the benefit system to bring it closer into alignment with housing policy:

“Of course, abolishing the bedroom tax will help, but tenants’ ability to pay their rent if they are on low incomes is now under assault from the whole range of welfare reforms, of which bedroom tax is only one.”

Final thoughts

The housing crisis has been decades in the making, and there is no quick fix for tackling the problems of housing shortages, affordability and homelessness. Just last month, research by Heriot-Watt University found the chronic shortage of housing in the UK was greater than first thought, amounting to four million homes. To meet the backlog, the researchers estimated that the country needs to build 340,000 homes a year until 2031. This is significantly higher than the targets set both by the Conservative government and the Labour Party.

The new green paper from Labour has presented clear alternatives to the government’s housing policies, and later this year the government is set to publish its own green paper on social housing. The debate will continue, and housing will remain high on the political agenda.


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Destination stations: the role of railways in regeneration

King’s Cross Station, London © User:Colin / Wikimedia Commons, via Wikimedia Commons

From Roman roads, to Victorian ‘cathedrals of steam’, transport has played a pivotal role in the development of societies and economies throughout history.

Today, rising energy prices, road congestion, and climate change, as well as reduced household sizes and an increased demand for urban living have put the potential benefits of urban transport hubs back in the spotlight.

Transit-orientated development

Transit-orientated development (TOD) is one response. An American-concept, it involves the creation of high-density mixed-use developments around a transit station or stop, such as a railway station, usually within a half-mile radius (a 10-minute walk approximately).  It may include office space, retail, leisure facilities and housing, as well as public areas and green space, and a variety of public transport options.

The aim is to create attractive, diverse, walkable places.  TOD can also help to significantly reduce traffic congestion and air pollution.

Stations as ‘destinations’

In Europe, TOD has yet to ‘catch on’. However, it shares many similar principles with the increasingly popular concept of developing railway stations as destinations in their own right – for shopping, working and socialising.  Railways often form an important part of a town or city centre, and the combination of transport node and central location has the potential to attract people in great numbers.

The redevelopment of London King’s Cross station and the surrounding industrial wasteland made it one of the first ‘destination stations’ in the UK.  Around the station, new homes, shops, offices, galleries, bars, restaurants, a hotel, schools and a university were created, along with 20 new streets, 10 new public parks and squares, and 26 acres of open space.  In fact, the redevelopment was on such a scale that the area now has its own postcode – N1C.

Some other key examples of newly developed ‘destination stations’ in the UK include Manchester Victoria Station and Birmingham New Street Station. Network Rail last year stated that they intend to create many more such ‘destination stations’.

Economic and social benefits

As well as environmental benefits such as reduced air pollution and traffic congestion, mixed-use developments in and around railway stations can help meet housing demand, and spur the economic and social regeneration of their surrounding communities.  Particular benefits can include:

  • Improved passenger experience/satisfaction
  • Attracting more businesses into an area
  • Improving the supply of labour for businesses
  • New job creation
  • Increased demand for food, retail and leisure facilities from greater numbers of commuters, residents and workers
  • Helping high streets to compete with online retailers and out of town developments
  • Contributing to public health goals through increased walkability of areas
  • Making good use of previously inaccessible/waste land

Government support

There is strong government support for delivering improvements around railway stations.

The recent Housing white paper recognises the regenerative potential of railway stations, viewing them as key anchors for the next generation of urban housing developments.

Two new sources of funding for railway station developments have also recently been announced: the second round of the New Stations Fund – a £20 million pot to build new stations or reopen previously closed stations; and the Station Regeneration programme – which aims to develop railway stations and surrounding land, while delivering up to 10,000 new homes.

Alongside this, there are also plans to release large amounts of unused railway land for housing – enough to build 12,000 houses across 200 sites.

Large and small

In addition to developments focused around one particular station or city, there are also a number of major railway-based infrastructure projects currently taking place.  Among these are the Edinburgh-Glasgow Improvement Programme (including recently approved plans to redevelop Glasgow Queen Street station), Great Western Electrification, Crossrail and HS2.  All of these have the potential to catalyse regeneration in their surrounding areas.

At the opposite end of the spectrum, there are also a number of successful smaller scale regeneration projects involving railways.

Addressing the challenges

The development of railway sites can pose a number of challenges, including contaminated land, fragmented land ownership and reconciling short-term economic development goals with the longer time scales necessary in larger infrastructure projects.

However, according to James Harris, a policy officer at the Royal Town Planning Institute, planners are ‘uniquely’ placed to work with landowners, infrastructure providers, developers and the local community to help deliver a strategic vision for these locations.

Planners should also be flexible and creative in their approach towards station redevelopments, focusing on outcomes rather than processes, says David Crook, assistant director of station regeneration at the Department for Business, Energy and Industrial Strategy’s Cities and Local Growth Unit.  In doing so, he says, planners can help make a station regeneration project ‘more than the sum of its parts’.


Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you enjoyed this article, you may also be interested in our blog post ‘Reimagining travel: how can data technologies create better journeys?

New ideas for housing in London

Houses-on-coins-by-Images-Money

2015 was the year London’s population reached 8.6 million, a peak figure last reached in 1939. The capital’s population is set to rise by a further 1.6 million over the next 20 years, and by 2050 may have reached 11 million, more than the current combined populations of Scotland, Wales and Northern Ireland.

The rising numbers will add exacerbate the shortage of housing in the capital, which the head of the London Housing Commission has described as “one of the biggest public policy failures of the last 50 years.”

A showcase for new ideas
A major exhibition highlighting new thinking on solving London’s housing crisis is currently taking place. Organised by New London Architects (NLA), “New Ideas for Housing” highlights more than 100 ways in which London’s shortage of housing might be addressed.

Ten of the 100 shortlisted ideas were selected as winning entries from a competition that attracted ideas from architects, contractors, manufacturers, economists and house builders.

Among the winners were:

The Urban Darning Project
Employing the sewing technique for repairing holes or worn areas in fabric, the project aims to encourage small residential developments in central London to ‘fill-in the gaps’ of the urban fabric.

Supurbia
This idea has twofold approach: redeveloping local main streets and parades as mixed-use places with increased housing and amenity provision; and allowing owner-occupiers of semi-detached homes to develop their land, creating rich diversities of housing.

Investing in London’s Future by Learning from its Past
Drawing on London’s former leasehold system, this idea suggests that separating the cost of housing as a physical product from land costs would make it more affordable to build and buy houses.

MegaPlan for a MegaCity
The originators of this idea suggest that in order to meet the shortfall in housing by 2050, less than 4% of ‘edge land’ (the inner belt running from the inner London Green Belt to the M25) would need to be released from the Green Belt.

Wood Blocks
This idea proposes scaling up the growing appetite for self-build homes. A structural, weatherproof, thermally- and acoustically-insulated shell would be built by a developer / housebuilder, which could then be partitioned and fitted-out by new owners, delivering faster and cheaper housing.

The ideas are described in greater detail in a publication accompanying the exhibition. The NLA Insight Study also examines the current state of play in London’s housing supply, addressing the barriers around planning, land, funding, construction, procurement and design.


New Ideas for Housing
Exhibition dates: Thursday 15 October – Thursday 17 December 2015. Opening time: Monday to Friday: 9.30 am – 6.00 pm; Saturday: 10.00 am – 5.00 pm.
Address: NLA, The Building Centre, 26 Store Street, London WC1E 7BT
http://newlondonarchitecture.org/

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