1. 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

2. Your planning contacts
Neil Robson
Partner | Head of Property E: T:
Robin Atkin
Partner | Planning E: T:
Kamran Hyder
Partner | Planning E: T:
Andrew Moss
Associate & Chartered Town Planner E: T:
Nick Gholkar
Solicitor | Property & Planning E: T:
Melissa Flynn
Solicitor | Planning E: T:
Christopher Stones
Planning Technician E: T:
Kevin Sanderson
Chartered Town Planner E: T:
@WardHadaway

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

4. 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?

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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.

14. 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

15. Concluding Thoughts

16. Questions?