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Conservatives pledge to deliver 1.6 million homes and renew Affordable Homes Programme
Rishi Sunak has committed to delivering 1.6 million homes in England in the next parliament by “scrapping defective EU law” as he launched his party’s manifesto earlier.
Published alongside his address at Silverstone in Towcester, Mr Sunak pledged to abolish “the legacy EU ‘nutrient neutrality’ rules” that many in the sector have pointed out could be blocking around 100,000 new homes from being built.
He also promised to renew the Affordable Homes Programme (AHP) to target homes of all tenures, and focus on regenerating and improving housing estates.
There were just two mentions of social housing in the manifesto that reiterated a previously floated idea, panned as “scapegoating and unserious” by the sector, to introduce a ‘local connection’ and ‘UK connection’ test for social housing.
There is no social housing target which is why Inside Housing launched its Build Social campaign earlier this year.
On brownfield land, the Tories believe they can deliver “a record number of homes” each year in urban areas by providing a fast-track route through the planning system for new homes on previously developed land in the 20 largest cities.
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Alongside strong design codes, there is a commitment to raising density levels in inner London to those of European cities such as Paris and Barcelona.
On wider plans to boost urban regeneration schemes, the Tories plan to create locally led urban development corporations in partnership with the private sector and institutional investors.
In appearing to acknowledge the number of SME builders going bust over the past few years, there is a pledge to support them by requiring councils to set aside land for them and lifting Section 106 burdens on smaller sites.
In addition, they plan to ensure local authorities use the new Infrastructure Levy to deliver the GP surgeries, roads and other local infrastructure needed to support homes, and have made a commitment to “retaining our cast-iron commitment to protect the green belt from uncontrolled development”.
In response, Kate Henderson, chief executive of the National Housing Federation, said: “It is encouraging to see the commitment to renew the AHP and the recognition of the importance of grant funding for affordable homes in the manifesto.
“We also welcome the Conservatives’ ambition to build 1.6 million homes during the next parliament. We know, however, that with 4.2 million people in need of a social home in England, a more focused commitment to social housing, the most affordable and secure tenure for those on low incomes, is needed.
“Ensuring we have the homes we need will require long-term, strategic thinking from the government. That is why, ahead of the election, we are calling on all parties for a nationally co-ordinated and fully funded long-term plan for housing that focuses on dramatically increasing the number of social homes built each year.”
Beyond the need to build homes, the Conservative Party said it plans to support first-time buyers onto the housing ladder and “ensure fairness in our housing system”.
This includes making permanent the increase to the threshold at which first-time buyers pay stamp duty to £425,000 from £300,000, and the launch of a new Help to Buy scheme to provide first-time buyers with an equity loan of up to 20% towards the cost of a new build home. The scheme was initially scrapped last year.
First-time buyers will be able to get onto the housing ladder with a 5% deposit “on interest terms they can afford” in a scheme that will be part funded by contributions from house builders.
There will be a continuation of the Mortgage Guarantee Scheme, and support for more families to buy through shared ownership.
And there was a promise not to increase the number of council tax bands, undertake a council tax revaluation or cut council tax discounts.
Private residence relief will be maintained and there will be no increase in the rate or level of stamp duty to support homeowners.
The Tories will also introduce a two-year temporary capital gains tax relief for landlords who sell to their existing tenants.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “Tenants who want to become homeowners should be supported to do so. Whilst incentivising landlords to sell to existing tenants has the potential to help, it will not reverse the damage to the rental market caused by tax hikes under recent Conservative governments.
“As the Institute for Fiscal Studies has warned, changes to mortgage interest relief and the level of stamp duty paid by landlords have led to higher rents and stifled the supply of homes across the private rental market. This comes at a time when the number of tenants enquiring about every available rental property has more than doubled compared with before the pandemic.”
Elsewhere in the manifesto is a pledge to complete the process of leasehold reform and cap ground rents at £250, reducing them to peppercorn over time.
There is also a promise to “end the misuse of forfeiture so leaseholders don’t lose their property and capital unfairly and make it easier to take up commonhold”.
A 2019 pledge to abolish Section 21 also made this latest manifesto, alongside a promise to “pass a Renters’ Reform Bill that will deliver fairness in the rental market for landlords and renters alike”. This bill was shelved after the election was announced.
Another 2019 pledge to end rough sleeping, which has risen 120% since 2010, has been kept in addition to delivering “our commitments under the Local Authority Housing Fund and reviewing the quality of temporary accommodation”.
Finally, there is a promise to maintain cladding remediation schemes, tackle the growth of holiday lets and support the community and other forms of housing, particularly housing for older people.
Dr Carole Easton, chief executive at the Centre for Ageing Better, said: “It is disappointing to see the party has not reaffirmed its commitment to raise accessibility standards for new homes from the 2019 manifesto which it was unable to deliver over the past five years.
“What is really missing here is any support for people to improve their own homes. We needed to see a clear plan on how the next government will help ensure that no one lives in a dangerous home harmful to their health and the health of their families.
“We need a real commitment to substantially reduce the millions of non-decent homes over the next 10 years, supported by a national housing strategy and a network of regional hubs that advise people on home repairs, adaptations and improvements to energy efficiency.”
The Tory manifesto is hot on the heels of the Liberal Democrat manifesto, which yesterday pledged to deliver 380,000 homes per year, including 150,000 for social rent, and give councils power to end the Right to Buy in their areas.
