The Government’s house building aims took another blow with a total fall last year.
There was an 8% drop in new build starts in the year to the end of September, official statistics reveal. The total was 165,990 in England, with a 4% decrease in completions to 166,310 over the same period.
Quarterly figures show a dramatic fall of 68% from Q2 to Q3 in 2023 in house building, but there was a record high of new build housing starts in Q2 as developers rushed to beat a deadline for Net Zero carbon emissions. New build completions were estimated to be 39,990, a 1% increase when compared to Q2 2023, and a 5% decrease when compared to Q3 2022.
Completions are 18% below their Q1 2021 peak, but 149% above their Q2 2020 trough.
The Government’s target to build 300,000 new homes a year was watered down in 2022 when housing secretary Michael Gove (main picture) agreed to make it advisory rather than mandatory. Instead, Gove later challenged councils to meet their targets or face being named and shamed.
He also said that any local authorities which delayed legitimate planning applications could lose their powers.
Labour has promised to reverse Gove’s plans to boost housing supply ‘on day one’ of a new government. Liberal Democrat members rejected a move by the party’s leadership to abandon a housing target of 380,000 new homes every year.
Brownfield Development isn’t the only answer
Propertymark wants the government to cool down on its enthusiasm for brownfield development.
It says in a response to a consultation that the government wants amendments to planning policy and the way the Housing Delivery Test works to develop more brownfield sites. But the trade body says the government should also consider other issues - such as the 1.1m new homes receiving planning permission, but not being built.
Propertymark warns that an overemphasis on using brownfield land to meet housing targets could lead to the development of poor-quality housing in areas where people would not move to. As an alternative, it suggests an ‘infrastructure first’ approach, where homes are built with all the community assets they need, such as shops, transport links and access to schools. This would create new communities that people would actually want to live in.
It also calls for amendments to national planning policy which would encourage or incentivise smaller developers on smaller sites to offset the obstacles regarding tiny brownfield sites.
Propertymark adds that the Housing Delivery Test - a tool local authorities use to identify the number of homes required and delivered in their jurisdiction - should be applied more flexibly than now.
It argues that local authorities should ultimately base development decisions on what would lead to the largest number of new homes that people would want to live in. Prioritising brownfield development would not work in every situation, therefore a flexible approach should be prioritised.
It also says local authorities should approve developments that build a larger number of homes per year, rather than longer developments so they can respond quicker to the current housing supply shortage. Also to avoid developers with a large number of outstanding development projects and to consider the affordability of the new homes built.
Henry Griffith, Policy and Campaigns Officer at Propertymark, said “Propertymark is well aware of the current housing shortage facing the country. In that sense we are supportive of measures introduced to improve the supply of new homes. We fully support this policy where it can open up opportunities to develop brownfield sites that were previously not considered and lead to the delivery of new homes that people want to live in. However, this policy presents a risk that poor quality homes in unappealing areas could be prioritised in order to meet delivery targets. This must be avoided at all costs as it will not lead to communities and areas where people want to live.”
Sadiq Khan pledges to build 6,000 ‘affordable’ homes and bring in rent controls
London’s mayor, Sadiq Khan, says "he is the ‘renter’s champion’ and is committing to building 6,000 ‘affordable’ homes by 2030 with rents tied to the earnings of key workers."
Mr Khan was speaking at the launch of his third mayoral bid and will use powers he has already to cap the rent for these homes at one-third of the average wage of key workers. The homes will be built by local councils and housing associations, who will identify suitable land for development.
There’s no indication of how much the house-building programme will cost.
The Conservative mayoral candidate poured scorn on the plans, saying “rent controls have never worked, and Sadiq knows it.”
Mr Khan said “renters are at the sharp end of the country’s housing crisis and need a mayor who’s prepared to fight their corner. I’ve been calling for the power to freeze rents in the capital for years, but the government has refused. I’m not willing to stand by and do nothing so I commit to delivering new rent control homes across London, with 6,000 in the first phase. These will be homes for rent which key workers and middle-income Londoners can afford.”
The mayor also expressed his desire to collaborate with a future Labour government to introduce more comprehensive property licensing reforms.
This would empower councils to support renters in reclaiming up to two years of rent from landlords who violate the rules.
However, rent controls are not currently a national Labour Party policy.
‘Why is he just announcing it now?’
Conservative mayoral candidate Susan Hall said “If Sadiq has been able to do this the whole time, why is he just announcing it now? Rent controls have never worked, and Sadiq knows it. His hair-brained plan would worsen the housing crisis for Londoners and shows he simply isn’t listening. I am listening to Londoners, and that’s why I would build more family-sized homes, to increase supply – and therefore bring down rents.”
The announcement comes after the Green Party launched its own local elections campaign with a push for more affordable homes.
The party is calling for more funding to help councils build homes, an end to the Right to Buy and the introduction of rent controls in places where the rental market is ‘overheated’.