Housing powered growth? First, we must end our addiction to cheap building.
Reforms to the National Policy Planning Framework and the restoration of mandatory housing targets announced by new Chancellor, Rachel Reeves MP have rightly been welcomed by the sector.
Seeing housing delivery championed by the Chancellor feels slightly surreal after the seemingly ever revolving door of housing ministers the country has endured since 2010. Winning recognition that housing can drive growth? It still feels as unlikely to happen as it blindingly obvious. But that is exactly what the new Government has done. It’s an undeniably good start.
But we also need to think radically about the funding model for new homes.
The reality is, we need to end our addiction to cheap housing. Good quality, effective social and affordable housing can only be delivered if we invest in it. And by invest, I mean finally put to bed the idea that sub-£200 per square foot building is achievable or even desirable.
The time has come to turn the funding model on its head and look at lifetime rather than build costs and factor the running costs and likely use as we calculate good value.
The new NPPF is an opportunity to accelerate our net-zero goals, drive down the cost of living for just about everyone, and finally acknowledge and address the important role that housing plays in our health and opportunities.
Bold action to mandate full fibre broadband and renewable energy sources in all new developments could help all but eliminate utility costs for thousands, and rebirth the idea of net zero homes, as well as create jobs. It will also help registered providers guarantee income streams and plan more effectively for long-term investment in their homes, something which has been steadily compromised since the Affordable Homes Framework was first introduced by the Coalition Government.
The bit that will likely be trickiest is getting housebuilders to play ball. Developers will need to wean themselves off the bloated profits they have enjoyed over the last 20 years, and start to settle for more modest margins. It can’t just be about grant uplift.
Some developers have already risen to the challenge, doing the right thing over fire safety and taking a pragmatic approach over realising land value. Others have not. And just as registered providers have rightly faced scrutiny post-Grenfell and since the tragic death of Awaab Ishak, so too must housebuilders.
None of this of course starts to tackle the retrofit challenge that landlords must get to grips with, but it will be a start.
