MAKING THE CASE FOR LOW COST HOUSING RTPI

“MAKING THE CASE FOR LOW COST HOUSING” RTPI SOUTH WEST “PLANNING TO DELIVER HOUSING” 24 th April 2015 Shelagh Grant Chief Executive, The Housing Forum

MORE HOMES, BETTER HOMES • The cross sector membership network • Voices solutions from our membership to policy makers • Independent and originated from Egan Review • INFLUENCING, NETWORKING & INFORMING • Speaking to the industry

THE HOUSING FORUM MEMBERSHIP IS DRAWN FROM: House builders, Developers Contractors Suppliers Housing Providers Local Authorities Specialists Investors

WHY WE ARE CONCERNED ABOUT LOW COST HOUSING • • • Overall supply and demand falls short by 110, 000 p. a. Too few providers Impact of recession and mortgage restrictions Long term rise in house prices of average 6. 9% p. a. since 1980 – well above wages Reliance on investor driven house building models Affordable is 30 -35% of income (benefit cap £ 26, 000 or £ 32, 000 wages)

WHAT FACTORS ARE HOLDING BACK? • Recently funded by cross subsidy from sales by housing associations but may be too risky • Not enough social housing sales are replaced at rates of 1 in 7 • Land value and expectations of house builder shares values • The return to viability is not leading to improved affordable housing percentages

WHO DOES LOW COST HOUSING WELL? • Southwark • Islington • Warrington on - lending • Greater Manchester Pension Fund

HOW DO WE GET THERE? “Making a place for low cost housing – 15 for 2015” • Lifting the borrowing cap from local authorities • Empowering local authorities as long term patient investors • Giving greater freedom to housing associations to set rent • Setting up development corporations • Setting up a national housing investment bank

HOW DO WE GET THERE? • Removing public sector investment in low cost housing from the PSBR • Tapping into sector strength through on-lending • Social housing government guarantees • The return of capital subsidy • Stamp duty and capital gains ring fencing tax receipts

HOW WILL WE GET THERE? • Tax breaks for companies to provide workforce housing • Tax incentives to bring forward land • Broadening the definition and introducing a new planning class • Release of more land for housing • Offsite manufacturing

HOW LIKELY IS IT? Conservative Manifesto • 200, 000 starter homes • Housing ISAs • Extend RTB to 1. 3 m Housing Association tenants • £ 1 bn regeneration funds for 400, 000 homes

HOW LIKELY IS IT? Labour Manifesto • 200, 000 new homes by 2020 • Priority to first time buyers • 3 year tenancies in private sector • Prioritise capital to build more affordable homes

HOW LIKELY IS IT? Liberal Democrat manifesto • 300, 000 new homes a year by 2020 • 10 new garden cities • 30, 000 Rent-to-Own by 2020

HOW LIKELY IS IT? Green manifesto • 500, 000 social rent by 2020 • 350, 000 empty homes into use • Abolish right to buy

HOW LIKELY IS IT? UKIP manifesto • Referendum on major planning decision • Protect the green belt • Social housing for locals

WHAT DOES THE HOUSING FORUM CALL FOR? • Boost land supply and raise borrowing caps to build at scale Particularly • Extend Housing Zones • New Development Corporations • Lift local authority borrowing requirements • Local authorities work across boundaries • Remove capital expenditure on housing from PSBR and increase investment available to public institutions

MORE HOMES, BETTER HOMES THE HOUSING FORUM www. housingforum. org. uk