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The Government’s approach to housing. Simon Ridley Head of Housing & Urban Team. Overview. Government objectives for housing The problem Nationally and in the SE Government’s approach - PowerPoint PPT Presentation
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19th January 2005 IPPR seminar 1
The Government’s approach to housing
Simon RidleyHead of Housing & Urban
Team
04/19/23 2
Overview
• Government objectives for housing• The problem
Nationally and in the SE
• Government’s approach Sustainable Communities Plan, implementing
Barker Review, investment, regional agenda, environmental sustainability
• The challenge of delivery
04/19/23 3
The Government has a complex set of objectives for housing
• Access to decent shelter for all• Macroeconomic stability• Labour mobility • Housing’s role as an asset• Environmental and social sustainability• Regional growth balanced
04/19/23 4
Long-term imbalances between supply and demand are costly to the economy and households
• Over last 30 years UK house prices went up by 2.4% in real terms compared to European average of 1.1%
• In 2002 only 37% of new households in England could afford to buy a house compared to 46% in late 1980s
• Ratio between lower quartile house prices and lower quartile incomes in SE increased by 83% in last 6 years
• Increased pressures of homelessnessSources: HMT EMU study, Barker review, GOSE
04/19/23 5
Different parts of the country are experiencing different problems
Total Household Growth (Household Projections) vs. Total Stock Growth (current RPGs)
2004 to 2016
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Northhousehold
growth
North stockgrowth
Midlands & SWhousehold
growth
Midlands & SWstock growth
South & Easthousehold
growth
South & Eaststock growth
04/19/23 6
The Government is dedicated to providing decent homes for all
• Delivering the Sustainable Communities Plan• Implementing the Barker Review • Investing in infrastructure and social housing• Supporting growth in every region• Ensuring new housing is environmentally
sustainable
04/19/23 7
The Sustainable Communities Plan sets out the Government’s overall agenda
• £1.2bn market renewal programme aims to revive failing housing markets in areas of low demand
• Growth areas strategy focuses growth in 4 areas across wider SE to deliver 200,000 homes above existing plans
• Major investment across growth areas: £3.1bn for new transport schemes such as CTRL £60m additional health spending for PCTs Schools investment programme to take account of growth Abolition of ‘ceilings’ to ensure fast-growing local
authorities not penalised
• 80% of new development in Thames Gateway on brownfield sites
04/19/23 8
The Government is committed to implementing the Barker review to tackle long-term under-supply
Government response to Barker by end 2005• Investment in social housing and through £200m
Community Infrastructure Fund• Establish affordability goal by end 2005• Reform PPG3 to enhance responsiveness• Merge regional housing and planning bodies,
supported by strong advice• Examine local incentives to support growth• Consider whether PGS is effective and workable• Work with industry to improve customer satisfaction,
skills and design
04/19/23 9
A programme of major infrastructure investment is taking place in every region
Infrastructure investment in the SE
0100200300400500600700800900
£ m
illi
on
1998-99
2002-03
Source: PESA 2004, HMT
04/19/23 10
The Government’s regional agenda is supporting growth across the UK
• HMT/ ODPM/ DTI shared PSA to reduce the gap in growth rates between regions
• The Government is committed to strengthening the regional role in increasing productivity
• Ongoing devolution of decision making: Lead role of RDAs in promoting economic
development Strategic planning at the regional level for
economic development, housing, planning and transport
Consultation on regional funding guidelines to encourage greater prioritisation and co-ordination between different regional strategies
04/19/23 11
Action is being taken to ensure new housing is environmentally sustainable
• Continue to improve the environmental performance of buildings and developments during their planning, design, construction and in use
Sustainable Buildings Code being introduced by end 2005
• Use land more efficiently and protect valuable green space
Average densities in UK up from 25 dwellings per hectare in 1995 to 33 dwellings per hectare in 2003
67% of new development in 2003 on brownfield land, up from 56% in 1997
an additional 19,000 ha of green belt has been created
04/19/23 12
“We have a fantastic once-in-a-generation opportunity to create new sustainable communities”
The challenge for everybody: central, regional and local
government, industry and communities is delivery:• Regional spatial plans • Sustainable Communities Plan• Barker implementation• Investment in social housing and infrastructure• Communities that are environmentally
sustainable