Fixing our broken housing market Fixing our broken housing market. A summary of the proposals set out in the Housing White Paper. Kamran Hyder, Partner, Ward Hadaway Melissa Flynn, Solicitor, Ward Hadaway 19 May 2017

Your planning contacts Neil Robson Partner | Head of Property E: neil.robson@wardhadaway.com T: 0191 204 4124 Robin Atkin Partner | Planning E: robin.atkin@wardhadaway.com T: 0191 204 4127 Kamran Hyder Partner | Planning E: kamran.hyder@wardhadaway.com T: 0191 204 4196 Andrew Moss Associate & Chartered Town Planner E: andrew.moss@wardhadaway.com T: 0191 204 4118 Nick Gholkar Solicitor | Property & Planning E: nick.gholkar@wardhadaway.com T: 0191 204 4256 Melissa Flynn Solicitor | Planning E: melissa.flynn@wardhadaway.com T: 0191 204 4190 Christopher Stones Planning Technician E: christopher.stones@wardhadaway.com T: 0191 204 4253 Kevin Sanderson Chartered Town Planner E: kevin.sanderson@wardhadaway.com T: 0191 204 4158 @WardHadaway

Why is the housing market broken? "Well it was broken when you gave it to me!"

Why is the housing market broken? Today the average house costs 8 times average earnings In 1990s a first-time buyer couple on a low-to-middle income saving 5% of their wages each month would have enough for a deposit after just 3 years. Today? A growing demand for housing which is not being met As a result, private sector renting is up. The issue is not that there is not enough land. How much land in England is built on?

The Challenges The Government identify 3 main challenges to building more homes:- Over 40% of LPAs do not have a plan that meets the projected growth in households in their area; The pace of delivery of developments is too slow; The structure of the housing market makes it harder to increase supply

What the Government are going to do about it? Plan for the right homes in the right places Build homes faster Diversify the market Help people now Prevent land banking

Planning for the right homes in the right places Making sure every part of the country has an up to date plan Improved systems for identifying housing requirements Clarifying what land is available for new housing Further land to be released Green belt land Further encouragement for Neighbourhood Plans Making better use of land for housing by encouraging higher densities

Building Homes Faster 5 year housing land supply to be agreed on an annual basis The resource issue Ensuring that infrastructure is provided in the right place at the right time by co-ordinating investment Supporting developers to build out quickly by tackling unnecessary delays caused by planning conditions Ensuring that planning permission is implemented in reasonable timescales Simplifying developer contributions. Ensure there is sufficient workforce being trained. Introduction of a new housing delivery test

Diversifying the market Provide access to the £3 billion Home Building Fund The Government expect the Fund to help build 25,000 new homes between now and 2020 (the expected end of this Parliament at the time of consultation) and up to 225,000 in the longer term Emphasis on the Accelerated Construction Programme Support custom build Encourage investment from other sectors, including institutional investors. Back housing association and local authority developments

Helping people now 30% of Councils have house prices that are over 10 times the average salary. Around half of private rented households have no savings, spending nearly half their gross income on rent. Introduction of the Lifetime ISA Increase funding in the Help to Buy Equity Loan Ensure that private rented accommodation is kept up to a reasonable standard. Attempt to tackle empty homes Ensure that properties are suitable for the older population. An increase in the variety and availability of affordable housing including: Starter homes Affordable rented Rent to buy

Preventing Land Banking Few major reforms Create greater transparency through the planning and building phases. Enable LPA's to hold developers to account. Allow LPA's to consider how likely it is that a site under a planning application will be developed. Shortened timescales for development to begin. Simplification of the completion notice service process. Reforms to the compulsory purchase procedure.

Other proposals Creation of 10 new garden towns and 14 garden villages alongside existing development areas (per their consultation on changes to the NPPF). Aligning the definition of small sites with the pre-existing legal definition contained in SI 2015/995

Effect of the General Election The current Government was dissolved on 3 May 2017 There has been a restriction on Governmental departments publishing certain documents (the purdah) since 21 April 2017. Very few proposals passed through Government in time. Most notable hold up is the amended NPPF. 21 April saw a flurry of planning appeals be decided by the Secretary of State Other notable policies that were held up are: Guidance relating to brownfield registers and permission in principle. Many Governmental consultations that were planned following the publication of the White Paper have now been delayed.

What does the future hold? The major political parties are expected to launch their election manifestos shortly. The draft Labour manifesto was leaked last week and sparked much debate. Conservatives "safe bet" they stick with their current policy programme. Labour Focussed on affordable housing and increasing rental standards. Focus on brownfield development and avoid urban sprawl Liberal Democrats Also focus on the rental sector Encourage investment in the construction sector

Concluding Thoughts

Questions?