As the coalition government took control of the country, the slogan ‘Time for a change’ still rung in many ears. Unfortunately on one hand the housing sector will see change that could impact the progress of planning applications, whilst on the other we have another housing minister without a seat in the cabinet and no desire to change anything in the housing market, apart from the abolition of Home Information Packs.
The new coalition government has confirmed its plans to ‘rapidly’ abolish regional spatial strategies, to devolve power and give financial autonomy to local government and communities.
This was confirmed when they announced a saving of £600m by cutting quangos, which includes Regional Development Agencies.
In its programme entitled ‘Freedom Fairness Responsibility’ the coalition also confirmed its plans to introduce localism policies. The document says: “The government believes that it is time for a fundamental shift of power from Westminster to people. We will promote decentralisation and democratic engagement, and end the era of top down government by giving new powers to local councils, communities, neighbourhoods and individuals.”
This is a policy questioned by many housing commentators who fear localism and NIMBYism walk hand in hand and that it will now become even more difficult to get any planning applications approved let alone homes actually built.
The government also says that ‘in the longer term’ it will ‘radically reform the planning system’ based on the principles of the Conservative Party’s Open Source Planning publication. The trouble is that homes are needed now and longer-term reform of the planning system means the delivery of homes in the very, very long term.
The Home Builders Federation (HBF) welcomed Grant Shapps as Housing Minister, and called upon the new government to deliver its pre-election pledge to build new homes. However, it added that it was surprised the Minister was not offered a place in the new cabinet given the acute housing crisis. They must have been the only ones.
The HBF added that the Conservatives had repeatedly stated their commitment to building more homes: “The government’s task is now to develop a policy framework that will deliver on this promise, working closely with the home building industry.”
The new government responded by cutting the Homes and Communities Agency (HCA) budget by £780m. It is a bit of luck HCA brought forward and spent most of their budget before the election was called.
It has long been recognised that housing is a key component of the UK economy and does influence consumer confidence and spending. So it is worrying that the sector now has a weak and apparently disinterested minister at a time when the Council for Mortgage Lending and other organisations, who actually understand how the housing market impacts the economy, are saying that government must take the lead in reviewing housing practices and how we fund both the construction and purchase of homes.
Already the brief surge of property price increases experienced this year has encouraged more sellers into the market – unfortunately at a time when fewer folk can get a mortgage and start a moving chain.
Although there will remain buyers for the right homes in the right location, the market will soon be faced with excessive stock levels and limited numbers of purchasers, which will result in subdued property prices in the second half of the year.
The new homes industry will be more active than the second hand market and with its incentives continuing to help first-time buyers. This, however, will not create the moving chains required to shift larger brand new and second hand properties.
It is time for a change, but for those that remember right of centre politicians do not have a reputation for delivering positive change when it comes to housing and proving homes for the masses, who may not necessarily share their political leanings.
However, as one door shuts an other invariably opens, and it is now for the housing sector to discover a new set of political buttons to press when manoeuvring planning through the maze of locally influenced council chambers.
For further information contact davidmote@ferrier-pearce.co.uk
