As the Labour Government will have their feet firmly under the table now, they can work on bringing about the ‘change’ that was at the forefront of their rise to power.
The National Housing Federation and Local Government Association have raised concern that it will take a long-term financial solution and sufficient powers to deliver on the new Government’s proposals in respect of housing to overcome the £6 billion funding gap Councils face over the next couple of years.
Here is a summary of the “property promises” put forward:
- There is promise for the biggest increase in social and affordable housebuilding in a generation. Planning obligations will be increased to ensure new developments contain more affordable units and changes will be made to the Affordable Homes Programme to ensure more homes are delivered from existing funding. Growth of local authorities and housing associations delivering affordable homes will be supported to make larger contributions to the supply. New social rented homes and better protection of existing stock will be prioritised, through review of right to buy discounts and increasing protections on social housing.
- A pledge has been made for 1.5 million new homes over the next 5 years, with a vision of large scale new communities across the country. The National Policy Planning Framework will be updated, including restoration of mandatory housing targets scrapped by their predecessors. Planning authorities will need to ensure they have up to date local plans and planning applications will be considered in favour of sustainable developments. There are proposals to fund additional planning officers through increase of stamp duty land tax paid by non-UK residents. The new government have made it clear they will use intervening powers to build homes if necessary.
- With a brownfield-first approach, development of previously used land and fast-tracking approval of urban brownfield sites will be the priority. However, it is anticipated grey and green belt land will be unlocked where necessary, together with land affected by nutrient neutrality. The forefront of planning decision-making will be developments benefitting communities and nature.
- Reform is proposed of compulsory purchase compensation rules for landowners to be awarded fair compensation rather than inflated prices based on the prospect of planning permission, for specific types of development that deliver housing, infrastructure, amenity of transport. It is anticipated acquiring authorities’ existing powers may be extended to disregard hope value beyond the current remit of housing, health and education.
- Support will increase for first-time buyers, including the introduction of a permanent comprehensive mortgage guarantee scheme, where the government acts as guarantor for part of home loans to encourage lenders to offer lower deposits. There is a target to get more than 80,000 young people on the housing ladder over the next 5 years.
The contents of the Labour manifesto promise a sustainable and flourishing future for the housing sector. For now, we will just have to wait and see what the next 5 years hold.
If you wish to discuss the “property promises” mentioned in this article please do not hesitate to get in touch with our Social Housing team.