RICS Housing Commission 2013 “More good homes and a better UK” James Pargeter \ 17 October 2013 @jamespargeter

RICS Housing Commission 2013 “I very much welcome the analysis of the recently published RICS Housing Commission. You are absolutely right to stress the need for a longer term vision, which reaches across the tenures.” Mark Prisk MP – speaking at RICS Residential conference, 16 July 2013 Available from RICS website: http://www.rics.org/uk Report launched: 24 June 2013

RICS Housing Commission 2013 Background & Members Commission Chair & RICS President Michael Newey – Chief Executive, Broadland Housing Association Commission Members Mark Clare – Group Chief Executive, Barratt Developments plc Richard Donnell – Director of Research, Hometrack Nick Jopling – Executive Director, Grainger plc Prof. Duncan Maclennan CBE – University of St Andrews James Pargeter – Partner, Deloitte Real Estate Rosalind Rowe – Tax Partner, PWC Paul Tennant – President, CIH and Chief Executive, Orbit Housing Group Jeremy Wood – Chief Executive, Dudley Building Society

RICS Housing Commission 2013 Background & Members Evidence received (in person & written) 45 individuals and organisations, representing: Professional & trade bodies Academia Developers Housing Associations Homes and Communities Agency Local Authorities Consultants Funders & investors Observers Various – Department for Communities and Local Government Stuart Macdonald – Editor, Inside Housing

RICS Housing Commission 2013 The problem…

RICS Housing Commission 2013 National Challenges Unaffordability Under supply Restricted funding Growing fuel poverty Economic implications

RICS Housing Commission 2013 Our approach Informed & balanced by evidence Public interest, not RICS member interest Positive suggestions, not complaints

RICS Housing Commission 2013 Recognition Successive governments have tried to help housing markets Some current initiatives are: * Potential for unforeseen consequences * Positive in the long term * Positive in the short / medium term * Affordable Rent * Help to Buy * Funding for Lending * Housing Loan Guarantees * National Planning Policy Framework Supportive of the Montague Review * How does funding work? * Emergence of new wave of Private Rented Sector (PRS) housing

RICS Housing Commission 2013 The Report 39 recommendations All tenures considered Land supply Promoting home ownership Funding affordable homes Sustainability & fuel povery Good Homes for All

Key conclusions Land Supply Double the public sector land target From 100,000 new home plots to 200,000 by 2015 250,000 in next Parliament Default valuation basis For residential use with provision for 33% subsidised housing

Key conclusions Advance with care! Foreseen consequences Assessing impact of welfare changes Foreseen consequences Respond to unforeseen consequences Under-occupation ‘relief’ ‘Travel to work’ areas Rural areas Shortage of alternatives Regulation of Registered Providers Effective, but light-touch Outcome-focussed One size will not fit all

Key conclusions Promotion of home ownership Giving choice to tenants A portable home ownership discount for tenants Giving choice to tenants Preserving the rented stock Measures for the elderly Deferred Loan for energy efficiency SDLT exemption for over-65s downsizing

Key conclusions Funding new affordable homes New ‘higher’ Council Tax bandings To reflect values and regional differences Ring-fenced for new affordable housing Local Authority Finances Prudential borrowing To finance new homes Certainty on rents and welfare Creatin g a stable environ ment for investm ent “Subsidised housing always requires subsidy”

Key conclusions Private rented sector (PRS) Longer-term lets Tenancy agreements Longer-term lets Not reducing landlord’s rights Planning / s106 condition Rental ‘covenant’ New homes rented for set period

Key conclusions Addressing fuel poverty Incentives aligned Social rents that reflect energy efficiency Incentives aligned Sharing the benefit and cost VAT / Stamp Duty / Green Deal Review options Making fuel efficiency work financially

Cultural Change Home purchaser preferences Source: DRE Research, 2010

Final thoughts Housing market & priorities…

Final thoughts Housing market & priorities…

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