Labour’s introduction of the ‘grey belt’ could help bring 800,000 more homes to be delivered to the social housing sector, the latest research by Ceres Property has revealed.
Ceres Property looked at the market split in delivery between private enterprise and social housing, before utilising data on the potential number of new homes that could be delivered via the grey belt.
Figures showed that, across England, the grey belt has the potential to deliver more than 3.4 million new homes to the property market.
As it stands, the market split in the delivery of new homes means that three quarters of all new properties reaching the market come via private enterprise, with social housing accounting for a quarter – 23% via housing association and 2% via local authorities.
When the same ratio of housing delivery is applied to the housebuilding potential held within the grey belt, it showed that 801,404 new homes could be delivered to the social housing sector.
The West Midlands boasted the greatest social housing delivery potential within the grey belt.
It is estimated that the grey belt could help bring 555,068 new homes to the market in the West Midlands and, with 28% of new homes in this area coming via housing association and local authority pathways, this would mean a boost to social housing stock levels to the tune of 155,295 new homes.
Based on regionalised grey belt building potential and social housing delivery levels, Ceres Property estimated that a further four regions could see more than 100,000 new homes delivered to the social housing sector – East of England (135,283), the South East (129,044), the North West (120,038) and Yorkshire and the Humber (100,606).
Moreover, Ceres Property estimated that, based on current market values, the 801,404 potential new homes that could be delivered to the social housing sector across England via the grey belt would hold a market value to the tune of £350.8bn.
John McLarty, managing partner at Ceres Property, said: “Since Labour first produced its manifesto, it’s been clear that they intend to bring a dramatic degree of change to the property market and the creation of the grey belt has been the first step in doing so.
“As a nation, we need to build more homes and the designation of grey belt land has unlocked a huge degree of potential in allowing us to meet the required targets.
“However, we mustn’t forget the importance of social housing when it comes to the balance of new homes being built and, as our research shows, the development of the grey belt could help us make significant headway.”
He added: “Of course, the creation of the grey belt is one thing, but the next phase is to consider how these homes will be physically delivered and proper execution will be critically important when doing so.
“For now, I’m sure many will be encouraged by these numbers, and what they could mean for social support across England.”
