Grand Ambitions
Well, rather a lot has happened in the housebuilding industry since writing the July issue. At that time, it was around a week before we elected a new Government, who have since come out the gate guns blazing with new pledges and promises across the board. It’s naturally the Housebuilding Statement that deputy prime minister Angela Rayner made on July 30th that has garnered the most interest within our sector.
In this statement, the deputy prime minister announced a target of 1.5 million new homes to be built over the next five years. In order to achieve this, the powers that be intend to overhaul our planning system, review green belt land and ensure that local governments have thought out and up-to-date housing plans to meet their targets. Green belt land that is less desirable, “grey” and “ugly” will be reviewed and reclassified as “grey belt” land and able to be built upon.
In her statement, the deputy prime minister affirmed this but also stressed that brownfield development will be the first priority:
“The first port of call for development will be brownfield land. Reforms announced today will make explicit that the default answer to brownfield development should be “yes” and promote homebuilding at greater densities in urban centres, like towns and cities. To help deliver 1.5 million homes over the next five years, councils will have to review their green belt land if needed to meet their own target, identifying and prioritising ‘grey belt’ land, which the government has today set out a definition for. This includes land on the edge of existing settlements or roads, as well as old petrol stations and car parks.”
According to the government’s ‘golden rules’, such developments should “deliver 50% affordable homes, increase access to green spaces and put the necessary infrastructure in place, such as schools and GP surgeries.” So, what to think of all this? The housebuilding industry certainly seems to feel positive about it for the most part. Neil Jefferson, CEO, Home Builders Federation released a statement, for example, saying:
“Today represents the first and most important step ministers have taken in addressing the barriers to delivering new homes. The scale of the government’s housing ambition has given hope to the house building industry that stands ready to increase supply and tackle the country’s housing shortage.”
I suppose the pressing issue is whether any of this is actually achievable. We’re undeniably in a skills crisis in the UK construction industry as it is. Are there enough skilled workers to build all of these homes at this scale? Is encroaching on green belt land a good idea? More than that, will anyone actually be able to buy these new homes? Or will it go completely the other way and will house prices drop through the floor? Who knows, is the real answer to those questions. I suppose, at least, these housebuilding plans are ambitious. And, after the last government’s decision to back down on mandatory targets (and constant efforts to undermine new developments), this newfound energy is actually a welcome relief. I don’t need to tell any of you how dire our housing supply is and how quickly its being outgrown by our population. Call me cautiously optimistic, but maybe a little ambition is just what we need right now.
