‘Papering over the cracks’: industry reacts to Gove’s housing plans

Real estate leaders have called on the government to take further action to address the country’s housing crisis following Michael Gove’s commitment to invest £1.6bn in a variety of new initiatives this week. The secretary of state for levelling up, housing and communities committed £1.6bn to deliver new homes as part of a “long-term plan for housing”, with new schemes planned in Cambridge, Leeds and the east Docklands in London. Gove also announced reforms to the planning system which he said will speed up new developments, “put power in the hands of local communities to build their own homes” and unlock planning decisions. These include a new consultation over permitted development rights. Knight Frank head of planning Stuart Baillie said that the announcement is “unlikely to have meaningful impact on housing supply”. “It’s likely that the output of this policy will only create hundreds of new homes, instead of the many thousands needed to make a real impact on the UK’s significant housing shortage. This policy will only paper over the cracks, instead of getting to the heart of the issue facing the UK’s overburdened and under-resourced planning system,” Baillie said. “In many instances, residential amenity would be compromised by a town centre location – particularly ground floor retail – meaning conversion or redevelopment would be limited to fringe and out-of-town areas.” Baillie added that local planning authorities may not be supportive of the proposals as they could “create a loss of retail capacity, impact local retail amenity and reduce the vitality of already struggling town centres”. “If the plans are to work, local level strategies must be implemented to ensure core retail spaces are protected and the mix of uses within them remains balanced,” he said. “We have seen from office to residential permitted development rights that if the process isn’t properly managed, we could end up with substandard residential accommodation that does not meet local housing need.” Victoria Du Croz, a partner and head of planning at law firm Forsters, agreed with Baillie’s hesitance on conversions, saying: “Neither brownfield sites nor conversions of office to resi have delivered the number of new homes that are needed across the country to date. “Refocusing on these planning mechanisms by expanding permitted development rights to shop and commercial conversions is unlikely to boost housing numbers to the levels that are needed.” Du Croz added that the announcement failed to recognise the importance of a cohesive vision for towns and cities. She said: “Housing is just one element of growing the economy and supporting people. Housing is needed alongside job creation, space for warehousing and a retail and leisure strategy.” British Property Federation chief executive Melanie Leech warned that while permitted developments may help to revitalise town centres, “quality control” is critical. She said: “Not all commercial buildings are suitable for conversion to homes, and the priority must be to ensure that we are creating good quality homes where people want to live. “Greater use of PDR must be just one element of an integrated strategy to create thriving town and city centres.” Housing today, not tomorrow Pocket Living chief executive Marc Vlessing welcomed Gove’s announcement but said it falls short of providing immediate solutions to the growing challenges facing an industry under siege. “We need housing today, not tomorrow, and that is why for the last year we – along with almost 50 organisations ranging from Barratt Homes, G15 and the National Housing Federation to countless SMEs – have been campaigning for a small site planning policy. “Through simple changes to national policy, which could be enacted overnight through ministerial direction, the government could unlock literally thousands of small brownfield sites across England with the potential to deliver up to 1.6m homes. “But sadly, thus far, the government has not delivered against our initiative as they have kicked it into the long grass of ‘NPPF consultation’. However, we need action now to halt the planning blight that is stopping the delivery of small sites and much-needed affordable housing. “So, we, along with the growing industry coalition, urgently encourage the secretary of state to fast-track plans around small sites, which will provide a lifeline to both SMEs and affordable housing providers across the country.” But Charles Jordan, head of new homes at Winkworth, said Gove’s plans are “a step in the right direction”. He said: “The increased housing availability may help make housing more affordable and accessible to a broader section of the population. Changes to the planning system like the £24m planning skills delivery fund is also good news. “A predictable and efficient planning system will improve business confidence which the UK needs right now. This should enable companies to make long-term investment decisions with greater certainty, leading to more strategic and sustainable growth and lower inflation.” Pros and cons of high-density housing The government’s focus on delivering homes in town centres includes the supply of high-density housing which has received a mixed response from the industry. Forsters’ Du Croz said: “A focus on inner cities makes sense, given the Conservatives’ aversion to delivering development on the green belt, but the reality of bringing more homes to cities will mean building high in order to reach the necessary density.” Harry Downes, managing director of UK investment at Greystar, was “heartened” to see the government focus on town centres. “They [town centres] are ideal for the delivery of privately funded, higher density rental developments due to the availability of brownfield land with existing infrastructure – we think there could be a real opportunity to deliver more discounted market rent homes in this way,” he said. However, James Blakey, planning director at Moda Living, disagreed with Downes’ optimism for high-density town centre housing, saying: “The proposals announced today do not go far enough. “Government needs to make the tough choices so more land is available for housing and the planning system is fully resourced, rather than creating unrealistic expectations that the housing question can be solved by massing housing in the biggest cities alone.” Mick Platt, director of the Residential Freehold Association, said: “Inner-city housing is a critical part of the puzzle when it comes to addressing the country’s housing crisis and delivering on our environmental targets, but the government needs to think carefully about the challenges and opportunities associated with high-density housing. “Managing large, complex apartment buildings is not straightforward and the government’s leasehold reform agenda risks pushing this responsibility onto residents, many of whom do not want it. We need to maintain consumer choice in the market, ensuring that both leasehold and commonhold tenures are fit for purpose and properly regulated.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Photo © Tolga Akmen/EPA-EFE/Shutterstock