Yesterday, secretary of state for housing, communities, and local government, Steve Reed, along with mayor Sadiq Khan, announced a new package of policies
The London emergency housebuilding measures are designed to boost delivery, after recent warnings that delivery could collapse in the city.
The policies include a slashing of targets from 40% affordable housing to 20%.
The policies are designed to remove costs and barriers to homes
The measures will also target viability through removing design guidance that constrains certain aspects, such as density. Other measures will also provide relief from development levies, allowing schemes to begin more quickly.
The policies all come with attached conditions that developers will need to meet in order to take advantage of what they offer. If they do not, developers will instead need to share their profits with local boroughs in order to fund more affordable homes.
Furthermore, Sadiq Khan will be given new powers allowing him to fast-track housing, such as being able to review and call-in housing schemes of 50 or more homes, or when boroughs want to refuse the scheme.
The mayor will be able to speed up the call-in process for some cases without a full hearing process, intended to slash times needed for planning.
City Hall will also be the decision-maker for developments of 1,000 sqm or more on the green belt.
Housing secretary, Steve Reed, said: “Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes in our Plan for Change.
“I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.”
The mayor of London, Sadiq Khan, said: “Affordable housing has always been a top priority for me as Mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s. But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.
“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes. I’m not willing to stand by while the supply of affordable housing for Londoners dries up. With these significant new powers and the initial £322 million of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.
“I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”
London emergency housebuilding measures “must be temporary”
Leading industry bodies have reacted to the news with cautious optimism, understanding the need for these measures but urging the government to be clear on its temporary status.
CEO of the Royal Institute of Chartered Surveyors, Justin Young, said: “The subdued state of housebuilding in London is routinely reported in the RICS UK Construction survey each quarter. This impacts house and rental prices as reflected in the institution’s monthly Residential Survey. The Government and the Mayor’s Office package announced today should help propel housebuilding forward.
“Whilst RICS supports the creation of affordable housing, it is clear that the 50% target in projects is not working. Revising the target provision to 20% to receive Community Infrastructure Levy (CIL) relief should help move the industry forward, increasing potential profitability and confidence amongst housebuilders.
“Getting rid of late-stage viability assessments where housebuilders commit to 20 per cent affordable housing will soften a barrier to equity investment.
“Developing the call-in powers of the Mayor are also welcome. The Mayor will have the ability to get projects moving, even in local authorities where they have been delayed indefinitely.
“A City Hall Developer Investment Fund, with an initial allocation of £322m of grant investment is a powerful resource and makes it clear that this government is serious about getting London housebuilding moving again.
“RICS would add that increased resources for the Building Safety Regulator (BSR) are crucial if it is to tackle the growing backlog of projects. Getting decisions quicker and removing overregulation will improve confidence amongst developers and cost planners, meaning the new homes people need are built.”
Gavin Smart, chief executive of the Chartered Institute of Housing, said: “We know that London is currently experiencing acute and specific challenges with new developments and understand why the secretary of state has brought in these changes to support London. However, this must be a temporary measure and cannot set a precedent for affordable home targets more widely.
“We urge the government to set clear timelines and guidelines for reverting back to the agreed 35-per-cent-affordable-homes target in London, particularly as there is an overwhelming need for social and affordable housing in the city.”
“It is crucial that we continue to build the homes we need to tackle the housing crisis at its core and address the record numbers of households living in temporary accommodation. We welcome the government’s commitment to boosting affordable housing through the 60-per-cent target in the upcoming Social and Affordable Homes Programme.”
The post London emergency housebuilding measures announced appeared first on Planning, Building & Construction Today.
