Housing crisis – There is about to be a new government – it will be fine…

Listening to Radio 4, women from Bexley were talking about when they were young – they got married, lived with their parents for a year to save a deposit for a house, and then bought one. They went on to say that now there was no way their children could do that.

Who’s fault is that? One said the government had to do something  and another said that the government couldn’t do anything, and it was all because we were too soft letting too many people into the country.

The impact of the ageing population still living in their houses, some people still having babies increasing the need for supply, years of undersupply and decreasing affordability, exacerbated in some areas by the domestic draw of economic prosperity; seems to be forgotten by the ‘immigration’ viewpoint put forward particularly in the press.

There is just not enough housing nor is there enough planning for housing. And there’s increasing resistance to housing in many areas – often where the need and demand is highest. Essentially, people don’t like change; people particularly don’t like change that in any way undermines their personal life experiences.

What makes people resistant to new housing development (I have been here before https://planningadvisor.wordpress.com/2012/08/07/what-we-want-is-economic-growth-but-not-house-building/) is lack of infrastructure and lack of the provision of affordable housing for those in their community. People will resist when they find that they can’t get their child/grandchild into the local school, when it is more difficult to get a doctor’s appointment etc.

People fail to connect that their view of not wanting new development next to them, in their town, on their countryside, to why their children are still living at home at 26 – and why the generation of 20+ now don’t contemplate ‘family’ life as they are still living in their mum and dad’s back bedroom.

So surely, the government, house builders, developers, land agents and all the others involved in the industry know this…? Well, yes, but effectively tackling the infrastructure issue appears too challenging and politically the issue of more housing at a local level is toxic in many areas. So, the main political parties appear to agree that there is a housing shortage but… they will need to translate national rhetoric to local policies in action – they will have to demonstrate leadership and bottle to deliver and meet the needs of the country and its population, particularly the young. To do this they will need to take on the vocal ‘middle-aged’ middle class and the self-interested landowners, developers, housebuilders etc..

At present some government policies have made it more difficult to achieve the provision of affordable housing and housing accompanied by infrastructure.

The CIL Regs which now prohibit pooling five or more s106 obligations (as a reason for granting planning permission), with only a third of local authorities having a CIL in place, will mean that many authorities have no mechanism to collect contributions towards the necessary infrastructure that communities crave. This lack of a mechanism may make it impossible to get contributions to even basic mitigation which may result in the refusal of development including market and affordable housing development that are so desperately needed.

In addition, both CIL and now S106 net off existing vacant floorspace – further reducing the LPA’s ability to seek contributions to infrastructure and affordable housing respectively.

I have before voiced concern about the issue of viability, land value and the role of the land owner (https://planningadvisor.wordpress.com/2014/01/21/do-the-landed-aristocracy-hold-the-key/) if this is appreciated as a crisis – harming lives and the country’s prosperity – the role and expectation of the landowner needs to come under scrutiny and be addressed by government.

All that said, an obvious difficulty is that the planning system keeps changing – local planning authorities (LPAs) keep getting knocked off course with their plan making and their CIL. Every time something changes they have to review their evidence, update their evidence, spend more money, get council approval and so on… An example of this is six changes to the CIL regulations in five years and changes by examiners to the interpretation of these regulations, most notably in relation to viability and affordable housing.

Changes to s106 and CIL knock on to plan-making and plan wide viability. And, finally, the challenges of objectively assessed need and duty to cooperate (with no regional plan), which need to be balanced, should not be underestimated as obstacles to the planning and delivery of housing.

But don’t worry – there is about to be a new government – it will be fine..

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