Social housing: now let the positive changes begin

There are no two ways about it: the road ahead must be smoother and easier to navigate if the social housing sector, and the people who depend on a healthy supply of affordable homes, are to have a better future.

First and foremost, economic stability must be restored to enable registered providers to plan for the long term and invest in the future. The bond market is showing early signs of returning to normal – a clear signal investors are welcoming the change in government.

The Labour government’s aim to reform the planning system and land development policies will be central to boosting economic growth, but plans to build new infrastructure must be realistic and realisable to work. For example, there needs to be greater clarity on how new homes will be funded, given the current climate of sky-high construction costs and labour shortages, and there will need to be some give and take on housebuilding targets.

Investment is also urgently needed to upgrade ageing social housing stock, much of which was built after the second world war, is well past its prime and in need of extensive and expensive maintenance to continue being useable and meet sustainability targets.

“There are no two ways about it: the road ahead must be smoother and easier to navigate if the social housing sector, and the people who depend on a healthy supply of affordable homes, are to have a better future”

Plans for housing reform and increased provision of affordable homes cannot be achieved without the support of local government. As it stands, stretched resources and the loss of planning professionals to the private sector mean many local authorities are unable to drive through the changes needed to make a difference.

The new government must stick to its promises to recruit 300 additional planning officers and take action to address barriers to recruiting professionals to the public sector.

Time spent integrating new planning officers will also need to be factored into deadlines for planning reform. These plans should be implemented in tandem with plans to reform the use of compulsory purchase orders (CPOs). This will make it easier for CPOs to be used as a way of ensuring new developments are built out promptly, while the introduction of new planning codes will streamline application processes. 

Even if planning reform is delivered quickly, there is still an enormous mountain to climb if the government’s five-year plan to create 1.5 million new homes is to be realised. In these critical first few weeks, it’s essential that the new government is clear on the small print – for instance, where will these new homes be built and what is the role of local government in delivering this vision?

Using the revised CPOs to kickstart stalled developments would be a start. Many councils are still reeling from years of funding cuts and are struggling to plan ahead with the current funding structure. Ensuring developers pay the true price of the cost of development is needed; Community Infrastructure Levy (CIL) payments must be transformed to provide all the amenities that new developments need (not least water-treatment plants) and be constructed ahead of the new homes they will supply.

A move to multi-year settlements, tied into councils showing they have fulfilled their housing targets, could also help councils to plan more proactively to support the introduction of new infrastructure.

In its first 100 days, the new government should also press ahead with plans for the delivery of the five New Towns it has pledged. Expected to comprise 30,000-40,000 new homes, each town will bring important benefits for local communities and their economies, attracting inward investment, creating jobs and building a talent bank for the future.

The new government has already indicated that it knows where these New Towns should be, so there is no reason for delay in confirming these locations and getting started.

“In these critical first few weeks, it’s essential that the new government is clear on the small print – for instance, where will these new homes be built and what is the role of local government in delivering this vision?”

While it may not be high on the new government’s priority list, there is also an important opportunity to rethink regulatory control of the social housing sector. While safeguarding the health and well-being of social housing tenants is important, many housing providers believe that Awaab’s Law is too broad and all-encompassing to be effective.

The recent update of the consumer standards is also weighing heavily on registered providers. Many now believe that total compliance is simply not feasible and may cost, rather than benefit, their tenants and their satisfaction with their landlord. Reviewing the impact of recent regulatory changes could help to level the playing field and ensure registered providers are being treated fairly.

It’s also not too late to refine and optimise the Leasehold and Freehold Reform Act. While some elements are due to take effect on 24 July, most of the act’s provisions will have to be implemented by the new government. The act is helpful in that it has changed the definition of residential leasehold tenure and introduced some important benefits for leaseholders. However, there is scope for improvement. For example, replacing commonhold tenure altogether would better serve the interests of owners living in shared buildings.

Now is the time for the new government to take bold and far-reaching action and start delivering with and for the social housing sector. Much can be achieved in the first 100 days of office, and there is an opportunity to intervene in a positive and constructive way.

A clearly defined and realistic plan that doesn’t ignore the big issues of the day is critical to delivering a brighter future for the social housing sector.

Jonathan Cox, partner and head of social housing, Anthony Collins