Housing Crisis – Confusion Abounds!

DSCN0285Oh no, not another blog on the housing crisis! There seem to be so many at the moment and just as I think about writing one, someone gets there before me with many of the issues I was going to write about. So why am I bothering? Well over the last few weeks I’ve come across some interesting examples of good and bad policy and practice that impacts on housing and I’ve written about some of it briefly in different blogs or articles relating to different topics, but now seems like a good time to bring some of it together, as a contribution to this ongoing debate. So read on if you can bear to!

I’m certainly not suggesting I have the answers or solutions, but merely some thoughts on the type of issues that need addressing and some examples of just how much better they are addressed elsewhere. Also, my take on some of the solutions offered by others is that on their own they won’t work, but maybe together and combined with other things there are some answers out there that might just make a difference, we’re just not joining things up properly. And that’s about joining up locally as much as it is about joining up centrally at national policy level, not all the blame rests with central government, local councils can be just as much at fault for contributing to the problem.

What strikes me most about some of the debate is the serious lack of any strategic planning in the UK at the moment. Ever since the abolition of the Regional Development Agencies and the Regional Spatial Strategies we have been left with a void of strategic planning, reinforced by the Localism Act and its emphasis on local councils taking control of decisions about the supply of housing. So we have a government that says it wants to build more homes but which refuses to set targets for local councils to meet. Local councils when agreeing their plans listen to the voices that shout loudest, those that want to preserve and protect. In cities that means all those that want to keep derelict or green spaces close to their houses just as they are and in more rural areas that means those intent on protecting every blade of grass from any form of development. The outcome is fewer homes planned for in Local Development Frameworks and fewer sites allocated for development and fewer houses built (a slightly simplistic overview, but you get the point?).

Interestingly, a recent case in North Somerset may well be the catalyst to change some of this, although the final outcome is still awaited as the council have yet to respond in detail to the ruling (for more detail see an article I wrote for Bristol 24-7). Effectively, the council has just been told its plan is likely to be considered unsound and doesn’t comply with national policy because it doesn’t make enough provision for new homes, according to a Planning Inspectors report, brought about after a challenge from Bristol University. Previously, the councils immediate response to the removal of national targets was to take over 10,000 houses out of its plans. The council is now having to reconsider that approach and accept that their assessment of need doesn’t fit with that of the most recent planning inspectors view, which brings into question the whole underlying approach of ‘self-containment’ at the heart of their plan. It both baffles and bemuses me how a council that sits so close to Bristol and its boundary can draw up a plan that tries to ignore the relationship with the city, but that’s what they did!

The lesson to be drawn from this, in my view, is that some form of national target for house building is critical. The Regional Spatial Strategies were by no means perfect, were hated by many and perhaps weren’t in place long enough to judge quite whether or not they would have delivered, but something that takes an overall strategic view of growth and the need to plan for it over a longer period has got to be better than what we have at the moment. A proper process of negotiation and compromise to agree local targets to help meet national targets has got to be better than the current conflict based approach where councils do one thing, developers challenge and government inspectors then impose housing numbers and changes to plans that have already been agreed locally.

Another issue that struck me relates to this whole debate about taxing housing and/or land. This seems to be something that rears its head every now and then, and used to be something that changed with every change of government, post 1947 when the Planning Act was first introduced. For me the critical point is about land value increases secured as a result of planning permission, again something that has been long debated, and is pretty unlikely to hit the agenda under the current government. Now I wouldn’t go as far as to suggest that landowners shouldn’t be able to benefit financially from securing planning permission on their land, but in my view there needs to be some control on this, to reduce speculative permissions and development and to enable more affordable developments to take place. Perhaps we could try something like the system used in Freiburg, where there are few if any volume house builders as land is bought up by the council and parcelled off in smaller plots to encourage small builders, self build, custom build and cooperative housing schemes, something we see very little of in the UK. Over there they have a system that freezes land prices, where the value of land pre and post planning permissions is set at a more sensible rate, so there is still profit to be had but not to the extent of the land market over here. Now surely that makes land for housing more affordable which in turn makes housing more affordable – doesn’t it?

Understanding cities and how they operate seems to me to be critical to this debate about housing, most of us now live in cities and urban areas and that trend looks set to continue. The notion that we can keep cramming our cities with higher and higher density housing, using up every last piece of green space, without thinking about the impact this has on the people living in those communities and neighbourhoods is just plain daft. But that seems to be what is happening, there are constant cries that there is plenty of brownfield land to be developed, we don’t need to expand our cities and encroach on that sacrosanct piece of land that is the great British greenbelt. Well, sorry, but I disagree. Many people don’t want to live in high density areas, they don’t want to live in apartments without gardens, and they don’t want to live in urban spaces with no greenery or green space to enjoy. So at some point, something has got to give and as a town planner myself, I would rather it gave in a planned and coordinated way than a speculative, unplanned manner that will only lead to development in all the wrong places. I think it is time to have a proper grown up debate about the green belt, about expanding our cities and their boundaries to encompass sustainable growth along transport corridors, where local facilities can be planned in to meet community needs, whilst at the same time preserving and protecting valuable green space within and outside cities and creating new ‘green belts’ where they are needed.

The problem with all this is it means some form of government intervention, which pretty much goes against the grain of recent and current thinking. The focus instead is on relaxing state intervention, particularly when it comes to our planning system, as there are constant calls for fewer regulations so developers can get on and build. Or intervention is focused on the individual, through schemes like Help to Buy, rather than on a collective need requiring wider intervention which might actually make a difference.

So the debate continues, as I am sure will the many housing blogs, as government, both local and national, fails to get to grips with the issues and fails to make the difference that is needed.

 

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7 thoughts on “Housing Crisis – Confusion Abounds!

  1. The reason there are so many blogs, is that nobody really has the answer. The fastest rising population ever, more babies born last year than any time since the post war baby boom, this may be the problem with no solution. We obviously need far more homes, but it’s optimistic to think this will have much effect on prices, and then the financial situation has to be right. Unless you can borrow at a level you can afford, and with prices already out of control, what chance you can buy a new home anyway. My guess is you will still be writing on the same subject for many years to come!

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  2. Good points about the need for a national house building strategy. So many organisations, institutes and individuals argue for increased house building, and many large numbers are bandied round, but no-one is collating those calls and statistics into a central policy that is discussed, approved, and then ACTED ON. At the moment, it seems everyone is arguing for the same thing but from isolated silos – perhaps indicative, as you suggest, of the Government’s push for ‘localism’..

    Yes, we need to consider regional demands and local variations…but we need a national strategy to deal with a national crisis.

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    • Neil, an agreed strategy is indeed needed, although whether we’ll ever get to one that is accepted is another question. It will take a brave group of politicians nationally to develop a national house building strategy, but that is in my view exactly what we need.

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  3. Funny how no one ever asks those most affected by the housing crisis what they want?

    The solution is simple – build homes. The obstacles are entrenched self interest, by builders, developers, local politicians, housing experts, planners, architects etc etc

    When it comes to housing Localism to often equals Nimbyism.

    We need another 1919 Housing Act, to force local authorities to build, and not just on crappy “no one else wants it” land like the albeit very good Junction 3 development.

    When Shelter revealed that more land is covered by golf courses than housing it laid bare the BIG LIE regarding development in the UK, that somehow the whole of the UK is under concrete. But it’s OK for the rich to have their playgrounds but the poor can’t have decent housing.

    Oh, and don’t bother with Freiburg – we don’t have a massive former French army base with existing utilities to demolish and then build on…

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    • Sadly Joe, it is always the most vulnerable who have the quietest voices and so are seldom heard, which lets politicians off the hook. Agree with your point about Localism = Nimbyism, too often the case, and I think the Tories knew that would happen when they scrapped national targets. The Shelter stats on golf courses is a good bit of theatre to make a point, but many still deny this.

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  4. Don’t think it’s just a Tory theme, Localism, we hear it from all 3 main parties, when it suits! Unless house building is matched by the availability of finance, how will people, especially the low paid, afford to buy these new homes? My letter in the E/Post ’07, stating house price inflation was more about the over supply of finance than the under supply of new homes, and disaster was around the corner, wasn’t too far off the mark! Are we in danger of going down the same road? Probably, because the prices are already again out of control, so my very amateur view would be to make sure the supply of housing is matched by the supply of credit, but please don’t ask me how!

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