UK Government launches strategy to boost housing supply

The UK Government published the White Paper "Fixing our Broken Housing Market" on 07 February 2017.

The White Paper sets out the support that the UK Government proposes to give to enhance the capacity of local authorities and industry to build new homes. This support is to include:

1. For local authorities, higher fees and capacity funding to develop planning departments, simplified plan making, and more funding for infrastructure. In addition to this it is proposed to make it easier to “take action against” those who do not build out once permissions have been granted.
2. For private developers, a planning framework that is more supportive of higher levels of development, with quicker and more effective processing and determination of planning applications, and a consideration of an improved approach to developer contributions.
3. For local communities, a simpler and clearer planning process that makes it easier for them to get involved in and to shape plans in their area.
4. For housing associations and other not-for-profit developers, £7.1bn through an expanded and more flexible Affordable Homes Programme.
5. For lenders, institutional investors and capital market participants, a clear and stable long-term framework for investment, including products for rent.
6. For utility companies and infrastructure providers, a clear framework and simpler plans to help them understand the demands made on them.

The overriding aim of the White Paper is to see more homes built, and the quid pro quo of each of the measures proposed by the UK Government to support the various parties engaged in the housing process is that they do what they can to enable more homes to be built.

In order to incentivise parties involved in the housing supply process to deliver, measures which will be introduced will include:

For local authorities requiring them:

• from November 2017, to publish an action plan if delivery of housing falls below 95% of the local authority’s annual housing requirement
• from November 2017, to plan for a 20% buffer on their five year land supply if delivery of housing falls below 85% of the local authority’s housing requirement, and
• from November 2018, the presumption in favour of sustainable development will automatically apply if delivery of housing falls below 25% (and 45% from November 2019 and 65% from November 2020) of the local authority’s housing requirement.

For house builders:

• implementation time frames to be reduced to two years
• completion notices may be used more often to withdraw planning permissions, and
• compulsory purchase powers may be used in relation to stalled sites.

Comment

The White Paper is a clear statement of intent, however it will require a significant review and revision of national planning policies and the statutory planning process including the introduction of new legislation.

For developers to unlock development opportunities, greater certainty over cost of delivery of housing will be required, particularly as this informs viability which is essential to them. Equally, the delivery of infrastructure by public bodies to enable sites to be brought forward for development will be of particular importance. The UK Government will have to take care that in introducing new measures including increasing application fees that it does not make development less viable, reducing the number of sites coming forward for development.

For local authorities and other public bodies to unlock development opportunities, increased resources and streamlined plan making and decision making processes will be essential to enable them to adopt housing allocation policies expediently and to work with developers to ensure the delivery of allocated developments.