In a statement to the House of Commons, Deputy Prime Minister Angela Rayner (pictured) has delivered the Labour Government’s plan to “get Britain building.”
Rayner stated that the Government’s plan to fix public services, “drive growth, create jobs and breathe life back into our towns and cities” was linked to a “radical plan” to build houses.
She said: “Delivering economic growth is our number one mission. It’s how we’ll raise living standards, for everyone, everywhere.”
Rayner explained that the decision about what to build should reflect local views, but that this should be “about how to deliver new homes, not whether to.”
This means making local housing targets mandatory and requiring local authorities to use the same method to work out how many homes to build.
Rayner said: “We’re also changing the standard method used to calculate housing need so it better reflects the urgency on supply for local areas.
“Rather than relying on outdated data, this new method will require local authorities to plan for homes proportionate to the size of existing communities, and it will incorporate an uplift where house prices are most out of step with local incomes.”
The collective total of local targets will be raised from 300,000 to 370,000 per year.
Rayner said: “Now, some will find this uncomfortable and others will try to poke holes. So, I’ll tackle the four arguments head on.
“First – that we’re demanding too much from some places. To this I say: we have a housing crisis, and a mandate for real change, and we all must play our part.
“Second – that some areas might appear to get a surprising target.
“Well Mr Speaker, no method is perfect, and the old one produced all sorts of odd outcomes.
“Crucially, ours offers extra stability for local authorities.
“Third – that we are lowering our ambition for London. I’m clear, we’re doing no such thing.
“That London had a nominal target of almost 100,000 homes a year – based on an arbitrary uplift – was absolute nonsense.
“The adopted London Plan has a target of around 52,000 and delivery in London last year was around 35,000.
“The target we’re now setting for London – roughly 80,000 – is still a huge ask, but I know it’s one the Mayor is determined to rise to, after meeting with him last week about this.
“Fourth – some will say a total of 370,000 is not enough.
“To this I say: ambition is critical, but we also need to be realistic.”
Rayner said that the first port of call should be brownfield land, but that there must be a more strategic option the green belt, to “make it work for the 21st Century.”
Rayner added: “Local authorities will have to review their green belt if needed to meet housing targets.
“But they’ll also need to prioritise low quality ‘grey belt’ land for which we are setting out a definition today.”
Where land in the green belt is developed, new rules will require the provision of 50% affordable housing, with a focus on social rent, schools, GP surgeries, transport links and improvements to accessible green space.
Rayner said: “Let’s not forget that it was the previous Government’s haphazard approach to building on the Green Belt that has seen so many of the wrong homes built, in the wrong places, without local services that people need.
“Under Labour, this will change.”
Rayner also announced changes to Right to Buy, including reviewing the increased discounts introduced in 2012, and consulting in the autumn on wider reforms.
The Government will immediately increase flexibilities for councils when using Right to Buy receipts.
£450m of the Local Authority Housing Fund will go to provide 2,000 new homes.
On the subject of local planning, Rayner said: “To deliver all of this we need every local authority to have a development plan in place.
“Up-to-date local plans are essential to ensuring that communities have a say in how development happens.
“Areas with a local plan are less vulnerable to speculative developments through appeals.
“And yet just a third of places have one that is under five years old.”
She added: “We will therefore fix this by: ending constant changes and disruption to planning policy; setting clear expectations of universal local plan coverage; and stepping in directly where local authorities let residents down.”
The Deputy PM said the Labour Government would introduce a Planning and Infrastructure Bill that will reform planning committees so that they focus on the right applications, reform compulsory purchase compensation rules, enable local authorities to put their planning departments on sustainable footings, streamline the delivery process for critical infrastructure, and provide any legal underpinning that may be needed to ensure that nature recovery and building works hand-in-hand.
Rayner said: “In the coming months, the Government will publish a long-term housing strategy for how we will transform the housing market, so it delivers for working people.
“These are the right reforms for the decade of renewal the country so desperately needs.
“This Government will build 1.5 million homes that are high-quality, well-designed and sustainable.
“We will achieve the biggest boost to affordable housing for a generation and we will get Britain building to spur the growth that we need.”
Honor Barratt, CEO of Birchgrove, said: “Angela Rayner’s plans for how Labour intends to increase housebuilding are laudable.
“However, we believe part of the solution to the housing crisis is making better use of the homes we already have.
“There has been a lot of focus on the need for affordable homes in Labour’s announcements so far.
“But this country has a similarly pressing issue with the lack of housing suitable for seniors.
“We note that today’s announcement mentions support for mixed use sites that comprise a variety of ownership and rental tenures. We hope senior living will be a significant part of this mix.
“Senior housing needs to be moved up the political agenda as it’s a key part of the solution to this country’s housing crisis.
“Two thirds of over-65s have at least two empty spare bedrooms in their home, which equates to nine million empty bedrooms every night.
“A significant number of these people would move to smaller properties if more suitable senior living was widely available.
“This would free up many larger properties and have a knock-on effect on the entire housing market.”
Jeremy Leaf, North London estate agent and former RICS residential chairman, said: “The announcement is very welcome, particularly the increase in the housing target as there is general agreement across the political divide that there is an acute shortage of affordable housing to buy and rent, which needs addressing asap
“However, it is not just the target that counts of course, it is the delivery and timing. Ambitious building targets set the tone for local authorities, but we need to see much more detail as to how the numbers will be increased, particularly with regard to engagement of local plans – can they be fast-tracked?
“The relatively low number of councils with approved local plans will be a challenge bearing in mind most can take up to three years to finalise.
“Can other measures be introduced simultaneously to reduce delays, such as dealing with necessary infrastructure and ‘reserved matters’ covering relatively minor issues such as boundaries and finishes, which can take so long to resolve?
“We need to bear in mind as well that setting higher targets means planning for a minimum of probably 20 per cent above the number required must be achieved to take into account natural wastage, renegotiation and changes of mind etc.
“One size won’t fit all, and builders won’t build unless sufficient returns are apparent. Locals will probably lose the right to challenge planning applications unless on grounds of design.
“The consequences of doing nothing or not enough is significant, bearing in mind the cost of providing temporary or short-term accommodation, to say nothing of the impact on people and communities.”
