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Building Holmes

Anti Housebuilding Policy is Verging on Insane

Posted by Michael Holmes on 9th June 2010

Whether or not this Coalition Government is for or against new housebuilding, the effect of changes to national planning policy guidance announced today is almost universally expected by the construction sector and town planners to reduce the total number of new homes being built.

Surely encouraging housebuilding should be a key component in ensuring economic recovery in the UK, creating genuine jobs and creating real wealth. Whether or not it is intended, unless it is amended, the new planning regime is likely to have the opposite effect.

What could potentially amount to a freeze on planning permission for new homes comes at a time when the UK economy is barely recovering from the worst recession since the 1930s, and we are building fewer new homes than at almost any time since the Second World War.

There is a major shortage of quality homes where they are needed, and the idea that the UKs empty homes offers any sort of solution is misguided - most of these empty homes lie in the old industrial cities of the north, where there is all too often little employment and little demand for housing.

Hopefully common sense will prevail, and local authorities, the RTPI and the Planning Inspectorate will interpret the new planning guidance sensibly and ensure that it is applied to prevent genuinely inappropriate development, whilst not allowing NIMBYs to bring a halt to the new homes this country so badly needs to build.

Sadly 'localism' - placing power in the hands of NIMBYs - is only likely to have one outcome when it comes to new housebuilding.

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#1

Is the outlook actually all doom and gloom?

Simon Pugh (not verified)
Thu, 17/06/2010 - 14:13
Simon Pugh's photo

Is the outlook actually all doom and gloom for the house building industry?

Maybe the following might offer some reassurance to all you self builders out there….

Let’s face it, whilst people are still growing up, forming new households or living alone, having children and living longer, the need for new housing will always exist. The number of new houses needed in the UK is not some figure made up by civil servants; the demographics speak for themselves. And here’s an interesting fact - the new Government thinks that locally derived housing requirements (based on demographic evidence for each local authority area) will be the same if not greater than the current Regional Spatial Strategy targets which have had so many people up in arms over the past few years.

So, driven by the promotion of a new ‘localism’ agenda by the Coalition, 'locals' will be given the responsibility (or blame) for locating these new homes in sustainable locations. But, if this doesn’t happen, developers will simply do it for them, because demonstrating a 5 year land supply for housing will still be crucial for local authorities.

Local housing targets can be quickly produced because they should be based on existing evidence (for example, local planning authorities have already prepared and submitted responses to RSS consultations and Strategic Housing Market Assessments). This will form the main basis for new Local Plans. These Local Plans will be able to roll forward existing up-to-date policy (i.e. Core Strategies and Sustainability Appraisals) so there is no excuse for embarking on yet more long drawn out policy formation.

In addition, Councils have had their Planning Delivery Grant removed for 2010/2011 but won't get the new "incentives" until 2011/2012 (which will make them keen for the money), and then only based on new planning permissions so new consents will be incentivised.

Sure there will be some ‘pain’ in the short term, but this all means that Councils should quickly be on the developer's side and will have to educate local communities that building houses is actually a good thing. Self builders should also be reassured that what we build is generally more sustainable and better designed than the standard mass produced boxes of the national house builders – placing us all very well to be a potential ‘preferred method of delivery’ for new housing.

Watch this space – there may even be an announcement as part of the Budget next week!

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