Category Archives: Commenting on Government

 

Latest GDPO amendments to Agricultural Permitted Development Rights

 

On Monday 5th March 2018, the Housing Minister, Dominic Raab announced changes to Permitted Development Rights which enable flexibility for rural sites to be converted from three to up to five family homes (Class Use C3) to better meet local housing need without the need to apply for Planning Permission.  You can read his statement here.

Amendments to the General Permitted Development Order (GDPO) were approved by Parliament on 12th March 2018 and have come into force today, 6th April 2018.

The amendments allow buildings which currently are/were in ‘active agricultural use’ on or before 20th March 2013 to be redeveloped for up to 5 dwellings. This will allow for the following:

  • Up to 3 larger homes within a maximum of 465 sq. m. (5005.2sqf)
  • Up to 5 smaller homes, each no larger than 100 sq. m. (1076.4sqf)
  • Combination of both above options – no more than 5 homes (no more than 3 being larger homes).

The permitted floor area has marginally increased from 450 sqm (4,843 sqft) to 465sqm (5005.2sqf). As set out above, the provisions can be combined to provide up to 5 dwellings per agricultural unit subject to the floor space limitations, with no more than 3 dwellings as larger dwellings.

Permitted Development Rights are subject to obtaining approval from the LPA first. This means that you must notify the relevant LPA and submit a prior approval application before starting any work. If the Council do not issue a decision within the time frame of 56 days, then development can begin.

Restrictions
It must be noted that permitted development rights are generally more restricted in the following designated areas:

  • Conservation Area
  • National Park
  • Area of Outstanding Natural Beauty or
  • The Norfolk or Suffolk Broads

Criteria
The following criteria will need to be met before a development can be considered as permitted development:

  • Buildings must have been used solely for agricultural use on or before 20 March 2013.
  • The new rights are not afforded to those who have used PD rights to build or extend buildings since 20 March 2013.

Please note that once the new PD rights have been exercised, there will be no opportunity to construct or extend an agricultural building for a period of 10 years.

Urbanissta welcome these amendments to the legislation, though its not a silver bullet, are hopeful that these changes will boost the number of homes created through the conversions of agricultural buildings which will assist in meeting local housing needs across the country.

The explanatory memorandum can be read here.

The amendments to the Legislation can be read here.

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The London Plan- In case you Missed it

 

The London Plan is the strategic planning policy document for all London Boroughs and forms part of the statutory development plan for each authority. It sets the strategic housing requirement for the whole of the metropolitan area and how this will be delivered as well as setting the strategic approach to other matters such as economy, design, heritage open space and landscaping and technical details such as renewable energy and drainage.

The current version of the London Plan was first adopted in 2011 with changes made during the course of 2015 and 2016.

The new London Plan or ‘Replacement Plan’ as it is also known was published for consultation in December 2017. This revised plan sees a step change in approach to planning decisions as it goes much further than being an overarching strategic planning document. Upon its anticipated adoption in 2019, it will come into effect straight away and the way in which it written means that authorities would not need to prepare a Part 1 Local Plan.

Whilst the Mayor is seeking to take some of the control of the function of the Boroughs, it doesn’t look to take all of them including the duty to co-operate. As the HBF wrote in their representations, the Mayor cannot pick and chose which functions they want to perform. The Mayor also proposes to set a metropolitan wide level for affordable housing at 50%
The Replacement Plan will run from 2019 to 2041 and sets a requirement of 64,935 dwellings over the first 10-year period. The capacity is made up of 400,470 homes from large sites and 245,730 homes over the 10 year period from small sites of less than 0.25 ha.

There is also reliance on increasing the number of units on those opportunity areas identified in the current London Plan and identifies approximately 9 new Opportunity Areas.

Development at Kings Cross Opportunity Area

Current and emerging Opportunity Areas. London Plan SHLAA 2017

There is a heavy reliance on brownfield land and optimising potential on:

  • Sites of PTAL 3-6
  • Mixed use redevelopment of car parks and low density retail parks
  • Intensification of residential on commercial leisure and infrastructure sites
  • Redevelopment of surplus sites
  • Small sites
  • Industrial sites
  • Sites that are allocated for residential and mixed-use development

There is also a general presumption against single use low-density retail and leisure parks.

Green Belt
The plan identifies that all the dwellings proposed can be provided within the City without extending out into the Green Belt. Policy G2 London’s Green Belt states that:
A The Green Belt should be protected from inappropriate development:
1) development proposals that would harm the Green Belt should be refused
2) the enhancement of the Green Belt to provide appropriate multifunctional uses for Londoners should be supported.
B The extension of the Green Belt will be supported, where appropriate. It’ s de-designation will not.

Given that 800,000 people commute between the City and the wider South East on a daily basis, it is questionable as to whether 65,000 dwellings can be delivered within the boundary of London. Nevertheless, the approach to Green Belt reviews should be undertaken by local authorities within their Part 1 Plans.

Commuting Patterns across London and wider region. London Plan 2017

The Plan Identifies 12 infrastructure priorities that the mayor will support within the Wider South East as they are of importance to the city. These include:

  1. East West Rail and new Expressway road link (Oxford – Cambridge)
  2. North Down Rail Link (Gatwick – Reading) including extension to Oxford
  3. A27 / M27 / A259 and rail corridor (Dover – Southampton)
  4. West Anglia Mainline, Crossrail 2 North (London – Stansted – Cambridge -Peterborough) and M11
  5. Great Eastern Mainline (London – Ipswich – Norwich) and A12
  6. Essex Thameside, A217 and A13 corridor
  7. Thames Gateway Kent : Elizabeth Line Extension and HS1 (London – North Kent -Channel Tunnel)
  8.  Lower Thames Crossing
  9. Brighton Mainline (London – Gatwick – Brighton)
  10. South West Mainline, Crossrail 2 South West (London – Surrey / Southern Rail Access to Heathrow) and A3
  11. Great Western Mainline (London – Reading / Western Rail Access to Heathrow)
  12. Midlands and West Coast Mainline (London – Luton – Bedford / Milton Keynes)
  13. Felixstowe – Nuneaton / Midlands and A14


Density
There has been a lot of discussion regarding the removal of the density matrix within Policy DM6 of the Replacement Plan in favour of higher densities across all sites. Policy DM6 requires the submission of a Management Plan where density is exceeded in the following cases:

  1. 110 units per hectare in areas of PTAL 0 to 1
  2. 240 units per hectare in areas of PTAL 2 to 3;
  3. 405 units per hectare in areas of PTAL 4 to 6

All of these units per hectare standards are those applied to central locations suggesting that a higher density approach to new developments will be the normal approach. A high-density scheme in a suburban location may not be appropriate.

The Policy also requires that
“measures of density should be provided for all planning applications that include new residential units:

  1. Number of units per hectare
  2. Number of habitable rooms per hectare
  3. Number or bedrooms per hectare
  4. Number of bedspaces per hectare.”

So, the density matrix whilst not there will still clearly play a part in the decision-making process for authorities.

Tall Buildings

Policy D8 states that the definition of a Tall building can be made by each local authority, again suggesting the approach to higher density development wherever possible. A tall building is still referable to the GLA if it exceeds 30m.

Design
Policy D2 requires design reviews to be undertaken at least once in addition to pre-application advice if they are:
– Above the density indicated in Policy D6
– Propose a building defined as tall building or that is more than 30m in height where there is no local tall building definition.

The approach to design should be taken by each authority within their Part 1 Plans. The approach to tall building design reviews is not helpful when read with Policy DM8.
Within Policy D3 inclusive design is promoted but no clarification is provided as to the threshold for inclusive design.

Regeneration
The Replacement Plan states that Boroughs should identify Strategic Areas for Regeneration in Local Plans based on a thorough understanding of the demographics of communities and their needs.

Affordable Workspace
The Replacement Plan emphasises the need to provide affordable workspace and low cost business space through Policy E3 Affordable Workspace

Basement Development
A Policy is now included on the need to assess large scale basement development along with a Policy also stating that any applications for fracking should be refused.

Public Houses
More protection for pubs is now included along with a policy requiring the provision of public toilets in proposals that involve people standing for long periods of time.

Overheating
There is now clear guidance on how to deal with managing heat risks, requiring an assessment of overheating through CIBSE TM59 for domestic developments and TM 52 for non-domestic developments. In addition, TM 49 guidance and datasets should also be used to ensure that all new development is designed for the climate it will experience over its design life. The

Air Quality
Whilst air quality is addressed in reference to other policies in the current London Plan, air quality requirements are addressed as a standalone policy in the Replacement Plan, requiring development to not lead to further deterioration of existing poor air quality, or create areas that exceed air quality limits.

Drainage
The Replacement Plan sets a Policy aim for development to achieve greenfield run off rates as the starting point. Development proposals for impermeable paving should be refused where appropriate, including on small surfaces such as front gardens and driveways.

Car Parking
Car-free development should be the starting point for all development proposals in places that are (or are planned to be) well-connected by public transport, with developments elsewhere designed to provide the minimum necessary parking (‘car-lite’) with maximum standards.

Those proposals with parking included need to include electric vehicle charging points.

Strategic Approach to Transport

The Replacement Plan sets out a significant list of transport infrastructure projects proposed to deliver the strategic target of 80% of all trips in London to be made by foot, cycle or public transport by 2041 and authorities in preparing development plans would need to support these projects. Such projects include the Silvertown Tunnel, Crossrail 2 and the provision of a new bridge linking south to east at Rotherhithe and Canary Wharf.

Next Steps
The Examination in Public will take place in the Autumn of 2019 with the adoption of the final London Plan in the Autumn of 2019.

 

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Government reshuffle brings new housing minister and new department name

 

Good game, new name…

It’s another positive step in the right direction on the government’s mission to fix the broken housing market.

The Prime Minister has conducted a reshuffle of her cabinet and the ministerial team which has affected the Government’s housing portfolio.

The Rt Hon Sajid Javid remains in charge of the overall portfolio although his title has been broadened to the Secretary of State for Housing, Communities & Local Government reflecting the priority given to housing by the PM and a change of name for the Department for Communities and Local Government (DCLG).

Housing Secretary Sajid Javid said:

“Building the homes our country needs is an absolute priority for this government and so I’m delighted the Prime Minister has asked me to serve in this role. The name change for the department reflects this government’s renewed focus to deliver more homes and build strong communities across England.”

The DCLG, formed in 2006 has been renamed the Ministry of Housing, Communities and Local Government (MHCLG).

An article published on the GOV.UK website on the 8th January 2018 confirmed the government’s renewed focus on housing.

Further changes were announced:

  • Alok Sharma, Minister of State for Housing who has held the position since June 2017, is being switched to the Department for Work and Pensions as he takes up a new role as Minister of State for Employment
  • Dominic Raab, MP for Esher and Walton, replaces Mr Sharma as Housing and Planning Minister at the newly branded MHCLG. He previously held the role of Minister of State for Courts and Justice

About Dominic Raab…

  • A former international lawyer who, after working for a law firm in the City, joined the Foreign & Commonwealth Office. There he advised on a wide range of briefs, including UK investor protection, counter-proliferation and counter-terrorism and UK overseas territories
  • After leaving the Foreign & Commonwealth Office in 2006, he worked for three years as Chief of Staff to Shadow Home and Justice Secretaries, advising the Conservative frontbench on crime, policing, immigration, counter-terrorism, human rights and constitutional reform
  • He was elected as the MP for Esher and Walton in 2010 with a majority of 18,593. He increased this majority to almost 30,000 at the 2015 general election before achieving a majority of 23,298 in 2017
  • Raab served the Joint Committee on Human Rights and Education Select Committee between 2010 and 2015 and in 2016 was elected by MPs to sit on Parliament’s Committee on Exiting the EU, which scrutinises the government’s approach to Brexit
  • In terms of housing and planning interests, Raab has previously led a campaign to protect the Green Belt in and around Elmbridge. His website states that he has “campaigned consistently to maintain effective greenbelt protections, which was confirmed as national policy by the government in its 2017 White Paper.”
  • In 2011 he also called for allowing the local community to determine the balance of development as well as streamlining the bureaucracy of the planning process for the benefit of councils

Elsewhere, Greg Clark will remain as Secretary of State for Business, Energy and Industrial Strategy while Marcus Jones has been announced as the new Conservative Party Vice Chair for Local Government, vacating his role as Minister for Local Government within MHCLG.

A new Local Government Minister had not been announced on the 8th January. Further, previous Housing Minister, and more recently Immigration Minister Brandon Lewis, has been appointed as Conservative Party Chairman, being replaced by Caroline Nokes in the immigration brief at the Home Office.

Following the resignation of Justine Greening as Education Secretary, Damian Hinds is the new Secretary of State in the department responsible for skills.

Hopefully, the reshuffle and potentially a new housing game plan will boost our confidence in the government and their attempts to fix the broken housing market.

Read more about the 2017 housing white paper.

Do you have any planning needs or housing projects that you would like to discuss? Contact us today.

 

 

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Planning for the right homes in the right places

 

On Thursday 14th September 2017, Sajid Javid, the Secretary of State for Communities and Local Government published a consultation – ‘Planning for the right homes in the right places: Consultation proposals’.

The document covers six specific subjects reflecting proposals raised through the Housing White Paper published in February 2017. These are:

  • Proposed approach to calculating the local housing need
  • Statements of Common Ground
  • Planning for a mix of housing needs
  • Neighbourhood Planning
  • Proposed approach to viability assessment
  • Planning fees

The consultation period runs until 9th November 2017. The full consultation and associated annexes can be found here.

In the consultation, Sajid Javid made the following points:

  • The housing market in this country is dysfunctional
  • For too long, there hasn’t been enough homes being built, “The damaging financial crisis ten years ago compounded this problem”
  • Due to the action that has been taken over the past seven years, the situation is improving. Last year saw more planning permissions granted than ever before, while the number of new building starts is at its highest level in nearly a decade
  • The housing White Paper, published earlier this year, set out how the government are going to get England building. That they are delivering their 2015 commitment of a million new homes by 2020, and want to supply a further half a million by 2022
  • The measures in the consultation will help ensure that local authorities plan for the right homes in the right places. This means creating a system that is clear and transparent so that every community and local area understands the scale of the housing challenge they face
  • Local authorities must not waste time and money on complex, inconsistent and expensive processes. This only creates lengthy bureaucratic arguments, often behind closed doors, and isolates local communities
  • The new approach proposed will give local communities greater control so they can make informed decisions about exactly where much-needed new homes should be built. In doing so it will help to tackle the lack of affordability of housing in this country, and support those families who want the security of owning their own home

Javid said, “The proposals in this consultation provide a more robust starting point for making these important decisions. Without the right starting point, we can’t make the wider reforms to the housing market that will ensure homes are built faster, by a more diverse housing market, to meet the needs of ordinary households and communities now and in the future. Nor is this consultation just about the numbers. It’s also about how areas can work together where communities’ needs cannot be met locally. And it’s about putting the right resources into local planning authorities so their plans can be delivered and communities can see the benefit of high quality, well-planned homes. We recognise that this is not easy.”

The consultation also sets out the government’s ambition to publish a revised National Planning Policy Framework in Spring 2018. This will ensure that they not only plan for the right homes in the right places, but that they turn existing and future planning permissions quickly into homes through reforms such as the Housing Delivery Test.

Javid concluded, “Nobody likes indiscriminate, unplanned and unwelcome development. But most of us are willing to welcome new homes if they’re well-designed, built in the right places, and are planned with the co-operation of the local community. To win the support of local residents, we have to build homes people want to live alongside as well as in. This consultation is the first step in making sure all that happens – and making sure our children and grandchildren can access the safe, secure, affordable housing they need and deserve.”

The government launched their £2.3 billion Housing Infrastructure Fund earlier this year to ensure essential physical infrastructure, such as schools and roads, is built alongside the new homes we so badly need. They are going to explore bespoke housing deals with authorities in high demand areas with genuine ambition to build. The government will also provide further support to local authority planning departments with a £25 million capacity fund.

We will be doing a further blog on the details of the elements of the guidance shortly, so keep an eye out!

Click here to read the whole consultation – ‘Planning for the right homes in the right places: Consultation proposals’.

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Theresa May goes flat at the Conservative party Conference in Manchester 2017

 

One word that came away from the Conservative party conference in Manchester was ‘flat’. It was a sobering word and consistent amongst opinions of those that attended.

This week, 1st-4th October 2017 saw Theresa May perch at her stand and deal with the many challenges the conference threw at her. The mood was one of ‘cheer up Theresa’. Should we be sympathetic or believe she has brought this upon herself? I guess that is a matter of personal opinion.

Earlier on in the conference, the government announced a cash injection to secure status of ‘Help to Buy to 2021’. The Prime minister revealed that £10bn of funding for the Help to Buy Equity Loan scheme will be available to ensure its continued operation to 2021. This action appeared to be an effort to appeal to younger voters. A challenge that May has faced since the vote.

The concern about the Conservative’s enthusiasm to help with the scheme is that funding may deplete too quickly.

In his speech, Chancellor Philip Hammond said, “The additional funding would be used to ensure the scheme is resourced and able to continue until 2021.”

He added, “Help to Buy: Equity Loan has achieved much higher take-up than we expected, helping 130,000 families so far with a deposit for their own home.

The figures published by DCLG last week revealed:

  • The previous 12 months had seen £2.55bn spent on equity loans
  • The Homes and Communities Agency’s annual accounts, published during the summer, confirmed that having forecast 30,000 completions, the scheme actually supported more than 40,000 households to buy a home during 2016/17
  • The success of the London Help to Buy scheme, with 40% equity loans since last year saw uptake in the capital rise by 95% in Q2 2017 compared with the same period in 2016. Help to Buy completions in London now account for 10% by number but 25% by value of equity loans

Over the last 12 months, the HBF has been engaged with Government at various levels. They stressed the need for clarity, both on the position up to 2021, but also the future post-2021. On the latter point, the government said, “We will continue to press ministers and officials on the benefits of indicating as soon as possible its intentions beyond March 2021.”

To exaggerate the benefits of the Help to Buy scheme for homebuyers and communities around the country, HBF last week published ‘Stepping Up’, exploring the economic benefits of the scheme to date. Its publication came as HBF published its latest Housing Pipeline study showing that the number of plots granted planning permission in the last 12 months reached the highest number since the quarterly research began in 2006.

Whilst Mr Hammond’s speech was somewhat reassuring, the rest of the conference was somewhat bland.  That said, the Conservative party appeared resilient. Theresa May was focused on fixing the broken housing market.

The Prime Minister’s much anticipated speech included the following:

  • Home ownership and housing supply – building on the announcement earlier in the week of extra funding for the Help to Buy scheme, she announced the investment of an additional £2bn in affordable housing, to be bid for by councils and housing associations to deliver new social rented homes, ‘getting government back into the business of building homes
  • Following the decision to bolster the budget for Help to Buy, the PM also used her speech to send ‘the clearest possible message to our house builders’. She said: “We, the government, will make sure the land is available. We’ll make sure our young people have the skills you need. In return, you must do your duty to Britain and build the homes our country needs.’
  • Addressing the importance of tackling the housing crisis, Mrs May said:

“I will dedicate my premiership to fixing this problem – to restoring hope. To renewing the British Dream for a new generation of people.  And that means fixing our broken housing market. “

  • Turning to the £10bn injection of funding into the Help to Buy scheme, the PM directly linked the party’s failure to secure a majority at the General Election with its inability to connect with young voters on housing issues: “Because it will take time for greater housebuilding to translate into more affordable house prices, we have introduced schemes like Help to Buy to support people who are struggling right now. But the election result showed us that this is not nearly enough. We’ve listened and we’ve learned. So this week, the Chancellor announced that we will help over 130,000 more families with the deposit they need to buy their own home by investing a further £10 billion in Help to Buy.”

The Prime minister closed the conference with a speech where she pledged to ‘renew the British dream’.

Mrs May said she would take personal charge of ‘reigniting home ownership’ and delivering affordable housing for a new generation.  If so, let’s see what she is able to drive.

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Britain’s housing crisis – what’s the latest?

 

Theresa May could face a Conservative backlash over the housing crisis if she doesn’t listen to the backbench Conservatives.

The Prime Minister has been advised to force councils to build more homes in an attempt to tackle the housing crisis and prompt a building boom.

Proposals have been put in place but nothing will be published until the end of the month according to The Department for Communities and Local Government.

The Communities Secretary, Sajid Javid, would like to see housebuilding boosted significantly.

In the housing white paper ‘Fixing Our Broken Housing Market’ published in February 2017, the Government said: “Some local authorities can duck potentially difficult decisions, because they are free to come up with their own methodology for calculating ‘objectively assessed need’. So, we are going to consult on a new standard methodology for calculating ‘objectively assessed need’, and encourage councils to plan on this basis.”

Sajid Javid hopes by adopting an expansive approach, which includes data about the local housing market, he can boost redevelopment in areas where prices are rising quickly. However, Javid and his allies are likely to find themselves up against Tory MPs and councillors that are wary of a planning blight. Andrew Mitchell, the former Development Secretary, publicly conflicted with Javid over plans for a housing development in his Sutton Coldfield constituency.

Housing campaigners urged the Prime Minister to be bold-faced. Gill Payne, the executive director of public impact at the National Housing Federation, said: “Getting this right will be a show of the strength of Government’s commitment to building the homes the nation needs. Getting a consistent and accurate picture of housing need is really important – it cements into the local plan the number of homes that need to be delivered.”

Ms Payne added: “Robust methodology will give a consistent and undisputable approach across the country.”

Polly Neate, the chief executive of Shelter, said: “We hope these changes will help to simplify and join up the way councils across the country assess housing need in their areas, and it’s vital that the new proposals work to deliver as many affordable homes as possible.”

She added that Javid should tighten up the planning regime, to allow local authorities to exert more control over what can be built, where, rather than relying on the market to deliver.

“It’s important to remember that developers can still often build whatever they like, regardless of whether it meets what the council says is needed or not. The Government must now take action to change this, by giving councils more power to get housing built that will meet the needs of their community.”

Previous Governments have sought to make property ownership more affordable. Ambitious building targets have rarely been met, and George Osborne’s focus on subsidising mortgages through the help-to-buy scheme was disparaged for fuelling the boom.

Moving forwards…

Theresa May really does need more young voters

The Prime Minister’s efforts to tackle the problem may have been strengthened by the Conservative’s poor showing among the younger generation at the general election in June. A recent YouGov poll suggested that just 4% of 18-24-year-olds trust the Conservatives to deal with the issue of housing – against 44% for Labour. If Theresa May takes the appropriate steps, she could gain more support from young people.

Official figures

Homeowners could expect to pay about 7.6 times their annual earnings to buy a house in England and Wales in 2016, up from 3.6 times earnings in 1997.

The Housing need test

The housing need test is one of a package of measures radical Conservatives believe will be necessary to tackle the challenge.

Whilst in Scotland…

The Scottish Conservative leader, Ruth Davidson, in a speech focusing on housing policy in Scotland, said on Friday: “It is a bedrock of Conservative belief that we should encourage a property-owning democracy. Yet increasingly, we now have something more akin to a property-owning oligarchy. Made up of lucky, mainly older, people who – by dint of having scaled the housing ladder – are now the ones who now control the country’s economic purse strings. “

George Freeman, chair of the Conservative policy forum, has also warned that young people risk rejecting capitalism if they have no chance of owning a home.

May signalled on her trip to Japan that she wants to press ahead with domestic reform, as well as complete the Brexit negotiations.

She pointed to her Downing Street speech last year, in which she pledged to right, “burning injustices”, including the fact that “if you’re young, you’ll find it harder than ever before to own your own home”.

But diluted corporate governance reforms published last week raised questions about whether May’s minority Government will be willing to take on vested interests.

Housebuilding slumped after the financial crash from more than 215,000 homes a year in 2007-8 to 133,000 in 2012-13. It has since recovered, but has not regained its pre-crisis level.

We will keep you informed about future developments.

Read our article on the Housing white paper 2017 here. 

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The UK population statistics and housing

 

UK Population on housing article

The national statistics population estimates mid-2016   revealed that the population of the UK was estimated to be 65,648,000 as of 30th June 2016.

The number of people that are resident in the UK including migrants has increased by 0.8% (538,000). That is a growth rate similar to the average annual growth rate since 2005.

Has the population growth rate with the influx of migrants been responsible for the housing crisis in the UK?

According to an article on theguardian.com, Theresa May claimed that more than a third of all new housing demand in Britain was caused by immigration.

 “And there is evidence that without the demand caused by mass immigration, house prices could be 10% lower over a 20-year period,” she said.

The London School of Economics report that May cited as the source for her claim also says: “In the early years even better off migrants tend to form fewer households as compared to the indigenous population; to live disproportionately in private renting; and to live at higher densities. However, the longer they stay, the more their housing consumption resembles that of similar indigenous households.”

This reduces the likelihood that immigration is the biggest strain on housing – the new migrants tend to live in denser households and take up less living space. Migrants are more likely to rent in the private sector in preference to buying homes or living in social housing.

The National statistic show that the effects felt from immigration on housing is mixed, and location specific. Due to the fact that the UK has a lack of social housing stock, an increase in life expectancy, and more households choosing not to get married or forgoing cohabitation resulting in an increased number of smaller households – any caps on immigration could potentially harm house building rates. Not enough British-born nationals are either trained or interested in construction careers, and migrants have been filling the void.

The overview of the UK Population, March 2017 revealed how the UK population compares with the other 32 member states of the European Union (EU) and the European Free Trade Association. It showed that, using a 1st January 2016 population estimate, the UK was estimated to have the third largest population and the fourth highest population density.

The population increase of the UK reflected increases of 193,000 people through natural change (35.8% of the total increase), 336,000 through net international migration (62.4% of the total increase) and an increase of 9,500 people in the armed forces population based in the UK.

The annual population growth varied across the UK. In England it was 0.9%, Wales 0.5%, Scotland 0.6% and Northern Ireland 0.6%. The UK population continues to age, but at a slower rate than recent years with only a small change to the proportion aged 65 and over (18.0% in mid-2016 compared with 17.9% in mid-2015) and an unchanged median age of 40.
While the population in England grew faster than the rest of the UK, population growth at regional level ranged from 1.3% in London to 0.5% in the North East.

Comparing the mid-2016 and mid-2015 population estimates at the local authority level showed that:

  • The total population grew in 364 local authorities in the year to mid-2016, compared with 350 to mid-2015
  • While the 26 local authorities showing population decreases to mid-2016 were spread throughout England, Wales and Scotland, 17 of these were in coastal areas
  • Of the 14 authorities showing population increases of 2% or above, 8 of these were in London

Five of these local authorities were in Inner London:

  • Westminster
  • Camden
  • City of London
  • Islington and Haringey
  • The other three a block in East London – Tower Hamlets, Newham, and Barking and Dagenham

 

Altogether, there were 223 local authorities with more people moving in than out, of which 93 had a net inflow of more than 5 per 1,000 population (mid-2015) and 25 had a net inflow of more than 10 per 1,000 population. Many of those were in areas that also had a higher net inflow: South West, East of England, South East and East Midlands.

There were still local authorities within these regions that had a net outflow, showing that there is considerable within-region variation.

Equally, there were 125 local authorities with more people moving out than in, of which 50 had a net outflow of more than 5 per 1,000 population (mid-2015) and 25 had a net outflow of more than 10 per 1,000 population. London had a specific concentration of local authorities with high net outflows, reflecting the high net outflow for the London region overall. An important explanation for this is that many parents with young children move out of London.

London was the most common region of first residence for international migrants to the UK and some of these may later move to other regions, potentially also with children. Similar factors may also contribute to the high net outflows from many provincial cities.
Immigration is a major factor in the demand for housing. We found some interesting statistics from Migration Watch UK (full report here):

  • To meet overall demand it is estimated that the UK needs to build 300,000 homes a year
  • In England alone, 240,000 homes will need to be built every year for the next 25 years, 45% of which will be due to migration
  • This means we will need to build one home every four minutes for the next 25 years just to house future migrants and their children
  • Official data shows that over the last ten years, 90% of the additional households created in England were headed by a person born abroad.
  • In London all of the additional households formed in the last ten years were headed up by someone born overseas
  • In the short term the UK needs to build more homes. In the longer term any housing strategy must also address demand
  • Reducing net migration will reduce the demand for housing

All said and done, we need to build more homes so let’s get Britain building!

 

 

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£2.3 billion investment in infrastructure for new housing in the UK

 

UK infrastructure investment uk housing.

Things are looking up for housing!

A £2.3 billion fund which could unlock 100,000 new homes in areas of high demand was launched yesterday (4th July 2017) by the Communities Secretary, Sajid Javid. It was a welcome and positive move.

At the Birmingham LGA Conference, the Communities Secretary said that the investment will help to fund vital physical infrastructure projects. Life’s necessities – the building of roads, bridges, energy networks and other utilities, the absence of which continues to delay housebuilding in the UK – preventing the government from fixing our broken housing market.
Communities Secretary, Sajid Javid, said:

“To build the homes this country needs, we need to deliver the right infrastructure in the right place at the right time. By investing in local infrastructure, we can help unlock building thousands of new homes in the areas where they are needed most.
The Housing Infrastructure Fund will also make sure we have better public services in place for local communities.”

Furthermore, the Exchequer Secretary to the Treasury, Andrew Jones commented:

“Where we live plays a huge part in our lives; from the distance of our commute to the local facilities available. By ensuring we have enough housing in areas where it is needed the most, we can boost productivity and support new communities to grow and thrive.
This money is part of our £23 billion National Productivity and Investment Fund, which will ensure Britain is match fit for the future.”

The much needed new investment through the Housing Infrastructure Fund (HIF) aims to solve this problem. It is opening for bids for local authorities across England to come forward with proposals to help get homes built faster, as from today!
Local authorities could begin building immediately once a proposal has been approved. The funding will be available from 2017-18 to 2020-21.
The fund was originally announced back in the Autumn Budget last year by Chancellor Phillip Hammond. Mr Hammond said that the money would be available for local authorities by 2020-21. The sooner the better.

Home Builders Federation Planning Director Andrew Whitaker said:

“Funding necessary infrastructure will give local authorities the opportunity to remove barriers to developments being delivered. Direct support for critical infrastructure will not only unlock more housing, it should also help to accelerate planned developments.”

“Local authorities that plan for growth should be supported and that will, in turn, allow house builders to get on and deliver the homes our communities so desperately need. HIF is an important demonstration of the government’s commitment to housing, following on from the housing white paper, which sets out a strategy to fix the nation’s dysfunctional housing market.”

“The fund will support councils to step up their plans for growth, release more land for housing and get attractive, well designed homes that people want to live in built at pace and scale.”

More encouraging comments came from the LGA Chairman Lord Porter.

“We’re pleased that the government has followed through on its commitment to invest in infrastructure linked to housing and that this to be led by councils, as we outlined on our preliminary Housing Commission findings last year.”

“Going forward, what’s crucial is that the arrangements to access this fund are flexible, especially around different housing tenures, and that all councils can access funds to deliver housing for their communities.”

“Councils know their communities, and the places in them, best and so it’s right that approaches to invest in local infrastructure are led by local authorities.”

It looks like things are moving in the right direction at last.

Read more about…

Sajid Javid
Sajid Javid was appointed Secretary of State for Communities and Local Government on 14 July 2016. He was elected Conservative MP for Bromsgrove in 2010.

Andrew Jones
Andrew Jones was appointed Exchequer Secretary to HM Treasury on 15 June 2017.
He was Parliamentary Under Secretary of State at Department for Transport from May 2015 to 15 June 2017. Andrew was elected the Conservative MP for Harrogate and Knaresborough in May 2010.

House Building
What are the government doing about house building?

Homes & Communities Agency
Find out about funding programmes, regulations, land & development opportunities, design and sustainability, procurement panels and digital services.

Department for Communities and Local Government
The Department for Communities and Local Government’s job is to create great places to live and work, and to give more power to local people to shape what happens in their area.

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How will the Heathrow Expansion be affected by a hung parliament?

 

Heathrow Airport expansion cancelled

Conservative MPs have warned that the Heathrow expansion is ‘not going to happen’ following the hung parliament. Last week, Zac Goldsmith, the Conservative MP for Richmond tweeted – ‘Heathrow expansion… not going to happen.’

 

He told The Sun: “Heathrow expansion already faced huge obstacles, not least a very strong legal challenge by Local Authorities and appalling air pollution implications.”

The proposal of a third runway at Heathrow Airport could be grounded!

This is due to as many as 40 of the Prime Minister’s own MPs being against the construction of another runway at the international airport.

If the third runway doesn’t go ahead, it would be a great relief for a lot of people. There could be an end to the major concerns about air pollution, noise pollution, climate change and the destruction of communities.

Before the hung parliament, Heathrow’s third runway was potentially going to be operational by 2026, creating £60 billion of economic benefits across a 60 year period.

The plan consists of a 3,500m runway which is said to be the first full-length runway to be built in the south-east of the UK since the Second World War. The costs involved are estimated to be a staggering £18.6bn.

Last year, the government stated that the decision to approve the plan is central to the economic growth of Britain – does this mean that the have placed more value upon the economic aspect of the development and completely neglected the law and the health risks imposed on Londoners? Well, Gatwick seem to think so. Gatwick have argued that the Heathrow expansion is illegal as it is already in breach of the EU Air Quality regulations and will contribute to prolonged breaches. It therefore undermines the current law and the decision to back the proposal is “unlawful”.

Whilst a large percentage of the Prime Minister’s MPs are against the runway, Labour MPs are divided on the issue. Their election manifesto only committed the party to expand Britain’s airport capacity.

The Conservative’s manifesto stated: “We will continue our programme of strategic national investments, including High Speed 2, Northern Powerhouse Rail and the expansion of Heathrow Airport – and we will ensure that these great projects do as much as possible to develop the skills and careers of British workers.”

Theresa May backed the proposal for a third runway at the airport last year. This was a turnaround for the Conservative party that had campaigned against the extra runway in 2010. Boris Johnson, the Foreign Secretary, Justine Greening, the Education Secretary and the Mayor of London are against the development.

So there could be long delays for the extra runway at Heathrow as well as dealing with the housing crisis here in the UK due to the gamble Theresa May took by doing a snap general election on the 8th June 2017.

We will do a return flight to this topic as soon as we find out more.

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How will the reshuffle affect housing?

 

Cabinet reshuffle article

There is good news…

Theresa May has announced that Sajid Javid will remain in post as the Secretary of State for Communities and Local Government. His understanding of the housing sector, combined with the continuity of his reappointment, will be of reassurance to the sector. 

The RTPI (Royal Town Planning Association) said it will write to the Communities Secretary Sajid Javid to discuss planning’s role in delivery and the implementation of the measures contained within the housing white paper 2017.

Stephen Wilkinson, president of the RTPI, said: “We will continue to work constructively with the secretary of state (Javid) to ensure the homes, jobs and infrastructure communities across the UK are delivered through the planning system. Developing and implementing a way to capture the rise in land value following public investment is critical to this delivery to ensure everyone benefits from development. I hope to discuss this and the other priorities outlined in our manifestos as soon as possible.”

Furthermore, Greg Clark will also be staying on as Secretary of State for the business, energy and industrial strategy. However, former Housing and Planning Minister Gavin Barwell, who lost his 165 majority in Croydon Central, has been appointed as May’s chief of staff.

Alok Sharma MP will now take on the role of Housing and Planning Minister. He will be the 15th Housing Minister since 2000. Alok Sharma is MP for Reading West and is a chartered accountant. In his constituency, his campaigns show a lot of emphasis on transport and infrastructure – including improvements to local stations and the extension to Crossrail Reading.

Plans to build more homes could be delayed as the new housing minister gets to grips with the property agenda. Gavin Barwell could be a hard act to follow, he was one of the most proactive and successful housing ministers. He faced up to the vested interest groups, challenged house builders to actually build, and told letting agents to their faces that he was going to scrap tenant fees. He had a real determination to get things done.

We will follow the changes and progression as Theresa May strives to achieve stability under her leadership. Let’s hope she’s not leading a sinking ship with the reshuffle.

Watch this space…

Do you have an opinion? We would be interested to hear.

Relevant articles:

The Manifesto 2017:
https://www.urbanissta.co.uk/news/manifesto-2017-conservatives-labour-housing/

Election results 2017:
https://www.urbanissta.co.uk/news/election-results-2017-a-hung-parliament/

About the RTPI

The Royal Town Planning Institute is the UK’s leading planning body for spatial, sustainable and inclusive planning and is the largest planning institute in Europe with over 23,000 members. It is an organisation and chartered institute responsible for maintaining professional standards and accrediting world class planning courses nationally and internationally.

A charity whose charitable purpose is to advance the science and art of planning (including town and country and spatial planning) for benefit of the public. A Learned society.

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