Comments continue to flood in from property industry professionals in reaction to the Housing White Paper, which was unveiled in Parliament on Tuesday 7 February by communities secretary Sajid Javid. Here are some more, from a host of angles across the UK’s property market.
Paul Staley, director of PRS at SDL Group: “Whilst encouraging, [the] announcement has perhaps raised more questions than it has answered. In the drive for new housing, bringing land into circulation ‘at the right price’ is going to be key. However, I’m not sure how this is going to be achieved, as putting restrictions on land use may cause issues with the valuing and disposal of assets moving forward. It’s vital that any restrictions will need to have a time limit in order to make this sustainable for years to come.
“It also appears that there will be a focus in high density developments – often large apartment blocks, housing numerous tenants. This is the direction most institutions are following as it’s an easier and more straightforward transaction to invest £50m into one of these schemes, rather than, say, 500 houses spread over 10 sites in the north of England. If we’re not careful, I feel the effort to grow PRS may have a very strong southern and city centre bias.
“The White Paper is certainly a brave move by the Prime Minister, but a progressive and much needed one at that. Time will tell as to whether the execution is as good as the plan.”
Jeff Doble, chief executive of London estate agents Dexters: “The stalled sites initiative is misconceived, it is likely to create unintended consequences. This is a classic case of “Nanny knows best”, with the government failing to understand the issues [and] being too quick to dismiss the views of the industry. Once again, this is too little too late in my view – tinkering around the edges, rather than dealing with the causes for the slow rate of new build – the planning system, associated charges and stamp duty. It is impossible that these measures will create the step-change that the government says it needs to reach its 2020 target of one million new homes. Brownfield land is often more valuable in existing use than risking the enormous costs, delays and uncertainty of the planning system.”
Ged McPartlin, sales director at Manchester-based Ascend Properties: “Any help to boost the private rental sector must be commended, providing stability and peace of mind for tenants who are increasingly feeling squeezed. We need to ensure that there is more choice in the market, realising that it is not just young professionals who need apartments but also families who need more space in good quality houses for rent. This is less of a problem outside of London but if the capital can be seen to be leading the way, the positive ripples will be felt far and wide.”
Mark Farmer, CEO of Cast and author of a government-commissioned review into the construction sector: “[The] housing White Paper includes many of the recommendations that I set out in my review into the construction industry. From a capacity building perspective there is a welcome recognition of the challenge of transforming skills development and training as well as strong support for modern, more efficient construction techniques.
“On a broader front, the central measures to better diversify tenure, especially through affordable housing and Build to Rent will drive a more resilient acyclical demand profile for the construction industry which in turn will enable longer term thinking and investment in higher productivity capacity building. It is critically important in my opinion that government has not only looked at increasing supply but is considering the physical means by which that will be delivered ensuring high-quality construction."
John Elliott, managing director of Millwood Designer Homes: “We welcome many of the proposals in [the] Housing White Paper including a standardised way of consulting housing demand and each local authority producing then reviewing it every five years, and the need to build at higher density and taller. I also support the presumption to build on brownfield land and the Lifetime ISA which will undoubtedly help first-time buyers get on the property ladder. I believe the Starter Home Initiative is achievable, providing the cost of the land is of a sub-market value, to enable the homes to be delivered and available within the price limits of up to £450,000 in London and £250,000 outside.
“However, I am concerned about the announcement to allow councils to issue completion notices demanding builders start building within two years rather than three. This is fraught with danger and will suppress housebuilding rather than ensure the government’s housebuilding targets are achieved. Once planning has been granted on a site, it can take 18 to 24 months before the planning conditions are satisfied, and to ask housebuilders to spend huge sums to secure planning over sometimes several years for councils to then decide the development is not valid on the new timetable, is unacceptable.”
Owen Woodley, managing director of Post Office Money: “More new build properties are vital to meet the demands of an increasingly competitive housing market and we welcome [the] call for councils to build thousands more homes across the country. We look forward to seeing how this scheme is implemented and welcome further clarity on how these will be financed.
“But to really get the market moving, these properties must be suitable for the nation’s first-time buyers (FTBs) – meeting the practical needs of the average FTB, at a price that is realistically affordable for them. While some may be happy to continue renting indefinitely, last year over a third of all mortgage applications to Post Office Money were from FTBs, demonstrating that homeownership remains an important aspiration for many.
“Mortgage providers like ourselves also have an important role to play in breaking down the barriers to homeownership for FTBs – for example by providing long-term fixed rates that give greater predictability on outgoings, and products that support family members to help others to buy.”
Charles Mills, head of planning at property consultancy Daniel Watney LLP: “A fresh look at rules around density and height is welcome but ultimately the government is trapped between its desire to devolve more power to local communities while simultaneously trying to deliver more housing at a far greater speed and scale than has been achieved in recent history. Combined with steep cuts to funding and staff, this has placed huge pressure on the planning system.
"If Sajid Javid genuinely wants to stimulate housebuilding, he needs to rethink how much decision-making happens at a micro-level while also injecting more cash into local planning departments. Punishing councils for failing to deliver new homes, as is being suggested, will only prove counter-productive over the long run."
Neil Young, CEO of Get Living London: “We’re delighted that the government has made this commitment to the rental sector as part of its housing agenda. Get Living London is a firm believer that good-quality, well-managed rental accommodation is a vital part of the solution to the UK’s housing problems.
“Since 2013, we’ve been offering a service-led rental offer at East Village, the former athletes’ village, which was developed by listening directly to what renters want, and it’s good to see the government’s agenda starting to reflect this too. We very much welcome the government’s commitment, and look forward to working with the industry to support the detail of their proposals.”
Peter Quinn, partnerships director, Lovell: “Lovell welcomes the government’s attempts to increase housing supply which is something the country desperately needs. Well thought-through local plans could be a key contributor to provide certainty for developers but for this to happen, planning departments need more resources – we are pleased that the White Paper appears to recognise this issue. We also welcome the support shown to provide a greater amount of rented housing, be it affordable or private.
“The requirement for greater speed of construction, including using modern methods of construction, is a strategy that Lovell embraces and is already delivering. If it is to really work then the government can assist greatly by making land available to people like ourselves who are willing to rise to this challenge.”
Gwyn Roberts, lead at the Home Quality Mark: “In order to get acceptance from local communities, a more diverse housing policy must ensure that homes that are delivered to householders (and their existing communities) are of high quality and low environmental impact to ensure everyone’s health and wellbeing is improved. The White Paper suggests that homes built near railway stations is to be encouraged, something that not only means that the new homes are automatically well connected, but could limit the impact upon existing roads (as people may not need a car). It is a balance though, without additional sound insulation from external noises (currently there are limited regulations in this sector), and the correct ventilation strategies (both of which the Home Quality Mark outlines), homes near railway lines could well become a nightmare to live in.”
Retirement specialist Anchor’s chief executive, Jane Ashcroft CBE: “The announcements on older peoples housing in today’s Housing White Paper are utterly disappointing. It talked about having a conversation but what we need is action. The government has missed a major opportunity to help older people downsize and tackle the housing crisis. Anchor’s Valuing Retirement Housing research estimates a saving of £14.5bn to the public purse over 50 years if just one extra couple among every 50 older homeowners downsized into specialist retirement housing, enabling first-time buyers to get on the housing ladder. We know that many older people would like to downsize but are prevented from doing so. Making it easier for them frees up the whole housing market, boosting market supply at a local level so it benefits all generations, not just older people.”
Chris Nelson, co-founder, egg Homes: “Making finance available to smaller developers is also a priority, and I am glad to see the government launch a £3bn fund to help smaller housebuilders. One of the major issues for developers can be acquiring the right level of finance to provide high-quality homes, so extra support is encouraging. However, we would like to see this directed towards under-supported council departments, towards recruitment, so that planning permission applications can be processed more quickly.
“Additionally, the government should be encouraging businesses to relocate to areas with high levels of unemployment and affordable housing. In turn, this could reduce the strain on large cities and spiralling house prices. Sharing these issues more evenly across the nation could provide a longer-term solution.
“Relaxing regulations on housing development through planning is also a welcome move, so long as the quality of homes and their suitability to the local setting is managed. I would advocate that any relaxation should be aimed towards benefiting truly sustainable housebuilding.”
Read some reactions to the White Paper here.
Read some more reactions to the White Paper here.
Read a further batch of reactions to the White Paper here.
Read the government White Paper in full here.