The not-so-new government has hit the ground with ambitious plans to build new homes: 1.5m in England alone within the next five years. We are all too aware of the desperate need for more – and more affordable - property in the UK. But previous governments have failed to resolve the longterm structural undersupply of housing, despite making similar pledges. So, what might be different this time around? Well, Labour says that it is prioritizing the building of social and affordable homes, which are the areas where the housing shortage is most chronic, with 1.3m people currently on waiting lists for social housing alone. And they are looking to councils to play an active role in making this happen. This seems rational. It is simply not realistic to expect the private sector alone to deliver 1.5m homes in five years of the type and in the locations where they are most needed. Housebuilders are private companies whose primary incentive is maximizing returns for shareholders, not purely serving the public interest. While they will have an important part to play in joint ventures with local authorities and public sector housing providers, they cannot be expected to plug the gaps left by years of public sector neglect and under-investment. Over to councils The government says it believes local authorities are best placed to decide the right blend of affordable housing for their communities, including a mix of affordable homes for ownership and rent. It is also reintroducing building targets for local councils, which were quietly let slide under the last Conservative administration. Deputy prime minister Angela Rayner has said that, to help hit the goal of 370,000 new homes a year, all councils in England will be set mandatory targets which will be incorporated in plans that councils must draw up by 2025 identifying where the homes will be built. Compulsory targets coupled with an understanding of the different types of property and tenure people need might sound like a winning combination, and Rayner claims that improved intelligence will play a part. “The method used to calculate [targets], which relied on decadeold data, will be updated. The new method will require councils to ensure homes are built in the right places and development is proportionate to the size of existing communities, while adding an extra level of ambition in the most unaffordable areas.” But 2025 is just 6 weeks away – and the process of setting targets and making plans doesn’t happen quickly in many authorities, a number of which are already cashstrapped and lacking staff and resources. And while setting targets is one thing – delivering on them is another. Hard road ahead for government’s housebuilding plans 08 WINTER MORTGAGE NEWSLETTER Kate Davies Executive Director
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