Archived decisions

Contact: Sue Clark, ext 5890 email: [email protected]

1. Summary

1.1 The Government has announced plans for three million new homes by 2020. The Housing Green Paper outlines the Government's plans for delivering these homes. The Green Paper and its 11 supporting documents have three themes:

(i) more new homes;

(ii) better homes and creating places people want to live in; and

(iii) additional affordable housing to rent or buy.

1.2 The Government has invited comments on the Green Paper by 15 October 2007. This report summarises the main points in the Green Paper and provides a commentary to enable the County Council to respond and thereby seek to influence the Government's plans for delivering new housing.

2. Recommendation

That the County Council responds to the Government's consultation on the Housing Green Paper on the basis of the commentary in the report.

3. Introduction

3.1 On 23 July 2007 the Government published a Green Paper called 'Homes for the future: more affordable, more sustainable'. The Green Paper and its 11 supporting documents have three themes:

(i) more new homes;

(ii) better homes and creating places people want to live in; and

(iii) additional affordable housing to rent or buy.

The Government has invited comments on the Green Paper by 15 October 2007. The Green Paper can be seen at: http://www.communities.gov.uk/index.asp?id=1511890

3.2 The Government has announced plans for three million new homes by 2020. The Housing Green Paper outlines the Government's plans for delivering these homes. There is much in the Housing Green Paper which is to be welcomed; particularly the need for much more subsidised affordable housing, the need for well-designed greener housing and the recognition that delivering the necessary infrastructure is critical to delivering housing. However there are other matters, particularly the increase in the annual target for house building, that are a cause for concern. The main issues are summarised below together with a commentary about the proposals.

4. Proposals for More New Homes

4.1 The Government is increasing the annual house building target for England by a further 20% from 200,000 per annum to 240,000 per annum by 2016. These extra homes are to be provided through an increase in house building totals in the regional spatial strategies (eg the South East Plan) which are still to be finalised, in further Growth Points including in the north of England, and in five new eco-towns. Further reviews of regional strategies are to be carried out by 2011, if necessary, in order to deliver the national house building target.

4.2 The five new eco-towns are to be on free-standing sites (not extensions to existing towns) which are to be suggested by councils or developers. Each is to provide 5,000-20,000 new homes and designed through architectural competitions to ensure high standards. Where possible the eco-towns will be on brownfield and public sector land. The criteria used to judge proposals will include zero carbon and environmental standards, sustainable travel and community involvement.

4.3 The Government has raised the target to 200,000 new homes to be built on surplus public sector land by 2016, a significant increase from the previous target of 130,000 announced in the Pre-Budget report. It is suggested that this will increase the number of affordable homes developed, bring forward sites more quickly and raise design and environmental performance standards.

4.4 There is continuation of the national target that over 60% of homes are built on brownfield land and consultation on ways to discourage house builders from 'landbanking'.

Commentary

4.5 There are major concerns about the very significant increase in the annual house building target. It is about 30% higher than the current rate of house building. In particular there are questions about the impact of this level of development on the environment and whether sufficient funding will be available for the infrastructure required, which is a particular issue in the South East already. The Green Paper's proposals could herald the likelihood of a further increase in house building rates when the Government consults later this year or early next on the finalisation of the South East Plan. If Ministers do not feel able to incorporate the whole increase in this Plan, then an early review of it would seem likely to be proposed.

4.6 The premise that increasing the rate of housebuilding will reduce the rate of house price rises was demonstrated to be flawed at the South East Plan Examination-in-Public. Whilst projections of future demographic change may justify a modest increase in housebuilding, firmer assurances must be given by Government over future infrastructure funding if higher housebuilding figures are to be acceptable to local communities. The issuing of higher national targets will not remove the real constraints on housebuilding capacity which exist at local level - for example, the finite capacity of rivers in Basingstoke to cope with the additional wastewater which new homes will generate.

4.7 It is suggested that no comment is made on the proposal for five new eco-towns other than to say that Hampshire County Council is of the view that there are no appropriate locations in Hampshire for this type of development, unless the criteria are changed to allow the proposed Strategic Development Areas in South Hampshire to be considered, where high environmental standards are already at the heart of the proposed approach to development.

4.8 Increased housebuilding on public sector land is to be supported in principle, although it remains to be seen whether the new target can be achieved in practice. Many local authorities like Hampshire County Council already actively manage their landholdings and dispose of any surplus sites, seeking housing development wherever possible as that use yields the maximum financial return. There are, however, felt to be opportunities to pursue small-scale rural affordable housing provision on County Council land through a more imaginative operation of rural "exception sites" policies. Government support for this approach would be welcomed.

4.9 Past experience in Hampshire has been of indecisiveness by Ministry of Defence and health services over whether a site is surplus to requirements. Very long delays have occurred between identification of surplus Central Government sites and developers starting on site. Any Government moves to increase certainty in this area and dispose of its sites more speedily would be welcome. However, many defence establishments and redundant health facilities are in isolated locations with inadequate transport links and service/community provision, where housing would not be appropriate and would not support the development of sustainable communities.

4.10 The retention of the national target for housebuilding on brownfield land is supported. However nationally (and in Hampshire) the recent actual figures have been well above 70%; the extra housing proposed in the Green Paper will all be on greenfield land (because brownfield sites have already been factored into regional strategies) and thus will reduce the actual percentages in future. This is on top of the Government's recent change to Planning Policy S3 which makes it more difficult to factor-in windfall sites (which are usually brownfield) and will also mean the allocation of more greenfield land for housebuilding. Together these are likely to reduce the actual percentage down to 60% or less.

4.11 Moves to discourage landbanking by housebuilders are to be supported. The Government's recognition of this as a problem undermines housebuilders' claims that development site shortages are entirely the fault of local authorities and/or the planning system.

5. Proposals for Better Homes and Creating Places People Want to Live In

5.1 The Paper includes proposals to make homes greener, including all new homes to be zero-carbon by 2016, with intermediate targets of 25% less carbon by 2010 and 44% less by 2013, and measures to cut water use in new homes by almost 20%.

5.2 The Government is committed to recouping for infrastructure investment some of the increase in land values created by the planning system. It believes that a Planning Gain Supplement (PGS) - a levy on that land value uplift - is right in principle, but has deferred presenting a Bill in Parliament to allow consultation with stakeholders on alternatives to PGS. The alternatives seen by the Government are:

(i) implementation of PGS at a lower rate than hitherto proposed and correspondingly less scaling-back of planning obligations;

(ii) limiting PGS to greenfield sites;

(iii) no introduction of PGS - instead there would be an expanded system of planning obligations with changes to make it easier for local authorities to set standard charges based on the total costs of infrastructure in an area; and

(iv) no introduction of PGS - instead there would be legislation to enable local authorities to set statutory planning charges to pay for infrastructure provision.

5.3 The Government intends to continue with targeted funding for Growth Areas and Growth Points (eg Basingstoke and South Hampshire) including a new £300 million Community Infrastructure Fund.

5.4 Other proposals include new initiatives to eliminate poorly designed housing schemes and the publication of a 'National Strategy for Housing in an Ageing Society' this autumn to ensure new homes meet the needs of an ageing population.

Commentary

5.5 Whilst the moves to improve the environmental performance of new homes are to be welcomed, the Green Paper is silent on how to achieve improved standards in existing housing, which will still account for the bulk of the housing stock even in 20 years' time.

5.6 The Government has stated that it is committed to ensuring that housing growth is accompanied by the social, transport and environmental infrastructure needed to deliver sustainable development at the local level. If housing levels are to be increased significantly, the finance for infrastructure will also need to be increased in order to deliver the infrastructure required. The promised additional £300 million Community Infrastructure Fund over the next three years is welcome in principle, but when spread over the proposed increased number of housing growth points will mean little extra for each locality.

5.7 The County Council stated in response to the most recent consultation on PGS, that infrastructure requirements at a county level would be most effectively delivered through a tariff which is locally administered and collected, ie option (iii) or (iv) above. This would have the benefits of simplicity and certainty for developers and the community.

5.8 Only 70% of the money collected would be transferred to local authorities, with the other 30% deployed regionally and/or nationally. This would reduce the ability to provide the necessary local infrastructure to accompany development.

5.9 It is agreed that there is a need to build a range of well-designed homes which are flexible, include family homes with adequate access for baby buggies and outdoor play space (gardens) and also meet the needs of an ageing population. This may have implications for the imposition of strict minimum density standards.

6. Proposals for Additional Affordable Housing

6.1 The Government plans an £8 billion programme for affordable housing 2008-2011 (up from £5 billion over the previous three years) and an increased target of 70,000 affordable homes per year in England by 2010/11. A national target is to be set later this year for new affordable homes in rural areas.

6.2 Local authorities will be able to establish Local Housing Companies to build first-time buyer and shared ownership homes on council-owned land. They will also be allowed to keep full rents from any new homes they build and retain all the cash from sales to tenants.

6.3 Fourteen new Community Land Trusts are to be set up - taking different forms to suit local circumstances. These will build affordable housing on land bought from councils at below market value or on land donated by others.

6.4 The Government wants to see a wider range of organisations bringing in more resources to build affordable housing.

Commentary

6.5 The Government's plans to increase the programme for affordable housing are likely to gain broad support. The low level of Government supported housing over recent decades is a very significant factor in the affordability crisis for those most in need. Substantial investment in social housing and shared ownership is vital, particularly in the South East of England. Greater freedoms for councils to take action together with the substantial increase in Government funding should deliver a much-needed increase in shared ownership and social rented housing. However there are concerns about whether the £8 billion outlined in the Green Paper will be sufficient to deliver the 60,000-70,000 new social homes which the Government says it will help to deliver.

6.6 It is disappointing that there is no mention of increasing the amount of supported housing such as that for older people or those with learning disabilities. It is very important that the Government protects the value of the Supporting People programme.

6.7 The lack of affordable housing is one of the most significant problems in the rural areas of Hampshire and South East England. An increase in affordable housing in rural areas would therefore be welcomed.

7. Delivering Housing Ambitions

7.1 Appropriately skilled workers will be needed to deliver the housing proposed. This will mean improved training, addressing recruitment and retention difficulties in key areas and focusing on ensuring there are enough skilled professionals, construction workers and planning officers to undertake the work required.

7.2 The paper states that if the additional homes are to be built it must be a shared endeavour; everyone needs to take responsibility and take account for the part they play in delivery. It states that Council Leaders need to ensure that addressing housing need is prioritised sufficiently both in strategic documents such as their Sustainable Community Strategy, Local Development Frameworks and Local Area Agreement and also throughout their engagement with local people. It suggests that local authorities will have a critical role to play and that their strategic housing role is at the heart of achieving the Government's ambitions for housing supply.

8. Supporting Documents

8.1 A list of the supporting documents is set out in the attached appendix.

9. Impact Assessments

9.1 Assessment of the Race Relations (Amendment) Act has been considered in this response but no adverse impact has been identified in terms of race, creed or gender.

10. Conclusion

10.1 The Commentary in this report provides the basis upon which Hampshire County Council can respond to the Government's consultation on the Housing Green Paper, "Homes for the future: more affordable, more sustainable". The Recommendation is framed to allow a response based on the views of the Cabinet.

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APPENDIX

The following supporting documents have been published alongside the Government's Housing Green Paper - Homes for the future:

· Eco-towns prospectus - setting out a vision and specification for local authorities and developers, including an invitation to propose at least five new eco-towns

· Building a Greener Future: policy statement - Government's strategy and timetable for achieving zero-carbon homes by 2016

· Building Regulations - Energy Efficiency Requirements for New Dwellings, a forward look at what the standards may be in 2010 and 2013 

· Water Efficiency in New Buildings - joint policy statement DCLG with DEFRA

· The future of the Code for Sustainable Homes - Making a rating mandatory

· Strategic Land Availability Assessment: Practice Guidance - to provide local planning authorities with advice on identifying land for housing and assessing deliverability; and

· Impact Assessment for Homes for the future 

· Regulatory Impact Assessment for Building a Greener Future .

In addition the following document has been published on the English Partnerships website

· Implementing Planning Performance Agreements - preliminary advice that accompanies the Department's current consultation on Planning Performance Agreements: a new way to manage large scale planning applications.

Other supporting documents

Regulatory Impact Assessment for Energy Efficiency Requirements for New

Dwellings - A forward look at what standards may be in 2010 and 2013 http://www.communities.gov.uk/index.asp?id=1511884

Provisional Allocations to Local Authorities of the Second Tranche of Planning Delivery Grant for 2007-08 - Excel spreadsheet outlines how much Planning Delivery Grant for 2007-08 (second tranche) Government proposes to allocate to each local planning authority in England.

http://www.communities.gov.uk/index.asp?id=1511859