New Government focus on social housing shows they mean business.

By Tim West · 1 August 2024

The new government’s focus on Social Housing has been placed front and centre in the past few days and the reaction has been positive from the sector. This is the strong direction and policy making that we have been crying out for a long time in order to address the chronic lack of social housing.

We know the devil is in the detail, but you need a plan to get to the detail and it does seem that the new government has a plan. Here at ARK, we support the reintroduction of targets – what gets measured, gets done!

Grey Belt vs Green belt

The grey belt / green belt debate will rage but we know that land exists. The requirement to provide affordable housing, green spaces and infrastructure is welcome and should apply to all housing development. We urge everyone to think Brownfield first.

It is pleasing that councils are to be encouraged to build and our experienced development team are already working closely with a number of local authorities to support their housing strategies and to build more homes.

Let’s summarise what has been announced:

1.

Angela Rayner, the new Housing Secretary, revealed a new national target of 370,000 new homes per year. The figure was a result of the new method of calculating housing need as part of the revised National Planning Policy Framework. The methodology will move from a population-based model to a stock-based model, incorporating an uplift where house prices are “most out of step with incomes”.

2.

Every part of the country will be required to increase delivery, although the abandonment of the 35% urban uplift, will actually see the targets for London reduced from 100,000 to approximately 80,000. Overall, the Ministry of Housing, Communities and Local Government (MHCLG) aims to build 1.5 million homes in the next 5 years.

3.

Councils have been told they must create a housing strategy which meets their local targets or they face intervention from the MHCLG which could take over an authority’s plan-making directly.

4.

Local authorities will be required to identify ‘grey belt’ land as part of their plan making process. The term coined by the Labour Party refers to poor quality land within the green belt.

5.

As well as introducing the new ‘grey belt’ category, the new NPPF will increase the amount of weight given to previously developed land and brownfield land that lies within the green belt, increasing the presumption in favour.

6.

The NPPF will apply a sequential test for grey belt release. If local authorities are making a plan and cannot satisfy their housing target through brownfield development or through cross-boundary cooperation with neighbouring authorities, grey belt will be the next land released.

7.

Grey belt land released for development must adhere to the ‘golden rules’ which means that 50% of the houses build should be affordable, increase access to green spaces and include necessary infrastructure such as schools and GP surgeries.

8.

Meanwhile, Sir Michael Lyons and Dame Kate Barker have been appointed to lead an independent taskforce which will develop a vision for the development of new towns. They have been asked to recommend appropriate locations for new communities of at least 10,000 homes (40% of which will be affordable) within 12 months.

9.

The new Labour Government has also indicated it will be prepared to take a more pragmatic approach to nutrient neutrality which has been welcomed by the Home Builders’ Federation. They estimate the policy has held up building nearly 100,000 homes due to fears of unacceptable levels of phosphates and nitrates entering vulnerable watercourses.

10.

The Government will consult on reform of the right to buy scheme and has given councils greater flexibility when using right to buy receipts.

11.

Angela Rayner confirmed that £450m of the local authority housing fund would be given to councils to build 2,000 new homes.

12.

Chancellor Rachel Reeves has said she will set out plans at the autumn budget on 30 October to give councils and housing associations the rent stability “they need to borrow and invest”.

13.

The Government has also said it will publish a long-term housing strategy in the coming months.

Challenges ahead

There’s no doubt that all of this will not be easy to implement – or fund. The issue of housing development has long been a contentious issue in many local communities but the fact that the new Government has clearly placed housing as a priority and has followed this with new targets will give a much-needed boost of confidence to housebuilders.

Gavin Smart from the CIH said: “[The] government announcement on housing and planning is very welcome. Our national housing crisis needs urgent attention and it is encouraging to see the government set out both a set of immediate measures and commit to a long term plan for housing, designed to ensure everyone has a decent, safe and affordable place to live.”
Justin Young, chief executive at the RICS, said: “Securing the homes the UK requires, needs more than one solution, and it is encouraging to see many of them addressed.”

To speak to our Development team about the new Government’s focus on Social Housing and how we can guide and support you to build new homes, please contact me and I will be happy to have a chat with you.