‘Encouraging first step’: sector responds to Rayner’s Spending Review commitments and new draft NPPF

Social landlords

Kate Henderson, chief executive of the National Housing Federation, said: “We strongly welcome the government’s commitment to reintroducing more ambitious mandatory housing targets, recognising the importance of social rented homes and to overhauling the planning system, which we have long been calling for. 

“These changes are an important first step to increasing supply, and we agree with the secretary of state that to reach the government’s target of 1.5 million new homes over this parliament, we must significantly increase the supply of social and affordable housing. 

“With the social housing sector facing huge financial pressures due to decades of cuts and rising costs, this can only be achieved through long-term funding to rebuild capacity that has been lost. Housing associations are ready to deliver these homes but can only do so with the right support.”

Clare Miller, group chief executive of Clarion Housing Group, welcomed a long-term rent settlement, which would “inject certainty and stability into social housing”.

She added: “This will give housing associations the confidence we need to deliver ambitious build plans over the long term and help the government to realise its vision of building much-needed new social and affordable homes at scale.

“Alongside a long-term rent settlement, the reforms to the planning system will be a huge help and could see us accelerate our pipeline of 20,000 new homes – getting them built quicker.”

Mark Washer, chief executive of Sovereign Network Group (SNG), said he believes the ambition of the announcements showed that the government “understands the scale of the challenge we face”. 

He added: “This is a good first step in the changes we need as we work to help end the housing crisis, and it will support SNG’s very clear plan to invest and to build. 

“There are millions of people desperate for a good, affordable home as the foundation to grow their lives who will be given hope by today’s announcement, and we look forward to working with the Government to play our part in delivering for them.”

John Glenton, executive director for care and support at Riverside, explained why he thought planning reform was key to unlocking growth.

He said: “Alongside 16 other housing associations which are members of Homes for the North, we have identified 80 Northern regeneration schemes which align with economic growth opportunities and key infrastructure projects that can deliver almost 43,000 new homes. 

“However, for the families stuck in temporary accommodation, the funding of new social housing is even more important.”

Mr Glenton believes that alongside the 1.5 million-home target, an annual target should also be set for the delivery of new social homes.

Andy Hulme, chief executive of Hyde Group, said: “The planning reforms the new government has put forward are a welcome step towards building the social and affordable homes the country needs.

“Reintroducing local housing targets gives a clear evidence-based marker of the scale of need for new homes in communities and will support getting building going. To deliver the step change in the delivery of social and affordable housing that is needed, we need to see the government build on its positive start.

“That means a social housing rent settlement that ensures the homes we provide are sustainable in the long term, and that social housing charities have the resources needed to invest in the homes we provide.

“Not only would a 10-year, inflation-linked rent settlement support investment in existing homes, this long-term certainty enables us to attract additional private sector investment, which, alongside government funding, is essential to ensuring we build more of the homes this country desperately needs.”

Gavin Smart, chief executive of Chartered Institute of Housing, said: “Today’s announcement is a welcome recognition and action by new government to make sure everyone has a decent, affordable place to call home. Placing social housing as central to its long term plan for housing, introducing clear housing targets and wider planning reform are much needed solid, steps towards addressing the housing crisis.”

House builders

Melanie Leech, chief executive at the British Property Federation, said: “This is an ambitious package of proposed changes to the make the current planning system work better while Labour develops plans for longer-term and more radical reform.

“These measures send a clear signal of intent to deliver more homes. We need a multi-tenure approach to tackle the chronic housing supply shortage, which sees social and affordable housing, homes for sale and build-to-rent firing on all cylinders. We are therefore particularly pleased to see that as part of the draft revised NPPF, the government will double down on encouraging every part of the housing sector to play their full role in building the homes we need.”

Ms Leech also pointed out that the success of the proposed changes very much depends on local authorities and that the government is right to focus on the importance of having up-to-date local development plans in place and delivering greater consistency in decision-making.

In response to Ms Rayner’s announcement, the Home Builders Federation (HBF) released a statement signed by more than 30 house builders. It called for mortgage lenders, housing associations and councils to come together and support the government’s very ambitious housing targets.

Neil Jefferson, chief executive of the HBF, said: “Today represents the first and most important step ministers have taken in addressing the barriers to delivering new homes.

“The scale of the government’s housing ambition has given hope to the homebuilding industry, [which] stands ready to increase supply and tackle the country’s housing shortage.

“The planning system has long failed to provide the amount of land needed to address affordability pressures, but in recent years, the elimination of housing targets has led to housing supply plummeting. A reformed, more progressive planning system that requires local authorities to meet their communities’ housing needs is a major step forward to address the barriers to delivery.

“The housing market is complex and bringing more land through the planning system will help to turn around ailing housing supply provided affordable mortgage finance can be accessed and buyers are able to purchase new homes.”

Legal

Jonathan Cox, partner and head of social housing at Anthony Collins, said: “In particular, the move to recruit more planning officers will speed up planning decisions and help schemes to get underway more quickly.

“Simply piling yet more pressure onto local authorities by increasing mandatory housebuilding targets won’t work, however. Social housing providers are already deeply concerned about the impact of regulatory pressures, such as Awaab’s Law and new consumer standards, which are placing them under significant financial pressure.

“Many are simply unable to fund the upgrades required so it is crucial the sector has the financial capacity to meet the government’s worthy development intentions. A more holistic solution is needed to address the housing shortage and facilitate more social housing development.”

Mr Cox believes additional measures are needed to address skills shortages in the building industry, requiring developers to fully build out when planning permission is granted (or see their planning lapse) and councils working with social housing providers to use new compulsory purchase order rules to compensate based on current use of land only, without the hope value.

Ben Garbett, planning solicitor at Keystone Law, said: “Regardless of these policy changes, the planning system is beset by a host of deeply embedded structural problems that will need to be fixed – eg understaffed local authority planning departments, construction industry shortages and lack of grid capacity – before the objectives of Labour’s pro-development agenda can be fully realised.”

Local authorities

Peter Mason, executive member for planning and skills at London Councils, said: “New flexibilities over how we use Right to Buy sales receipts are a big step in the right direction. Reducing restrictions will help ensure more money raised from council house sales is better invested locally in building replacement homes.

“London boroughs have a good record in granting planning permission, but construction of new homes has seriously stalled in the capital and we’re keen to work with the government in addressing this. As well as improving the planning system, we also need action on the other major factors undermining housebuilding, including the lack of local infrastructure, construction skills shortages and insufficient long-term funding for affordable homes.”

Richard Clewer, housing and planning spokesperson at the County Councils Network (CCN), said: “The CCN will be consulting with its members on the new methodology for housing numbers, but we have always been clear that local authorities know their areas best and that housing should be fairly distributed across the entirety of the country.

“County areas have delivered 600,000 homes in the past five years – higher than the rest of the country combined. However, on face value, this new methodology assigns more to rural areas that currently do not have sufficient infrastructure and less to urban locations that have more readily available infrastructure.

“A 50% target for affordable housing for green-belt land is correct, but the government must ensure that this has teeth and that developers will be compelled to deliver on it.

“For those councils who currently have an up-to-date local plan, this should be the ‘gold standard’ of where homes should be built in an area, rather than proposals put forward outside of those designated locations, irrespective of their new housing target.”