CLES / Newstart
Renters (Reform) Bill labelled a ‘failure’ on its return to Parliament
The Bill is finally set to return to the House of Commons today to receive its second reading, where industry experts have explained a lot of work needs to be done.
Back in 2019, the Renters (Reform) Bill was proposed in a bid to axe section 21 notices, which give landlords the power to evict their tenants on short notice. So far, the new legislation has been ineffective as a result of delays in Parliament, which have caused more people to be cast out of their homes. Recent figures from housing charity Shelter, found the number of households evicted by bailiffs rose by 39% last year.
However, the Bill was published in May 2023 and is finally due for its second reading in the House of Commons today. But despite progress, various industry experts have claimed major revisions need to be completed before it is made into law.
Darren Baxter, principal policy advisor at the Joseph Rowntree Foundation (JRF), said: ‘As it stands the Renters (Reform) Bill prioritises placating landlords and backbenches over strengthening tenants’ rights. The Renters’ Reform Coalition is right to highlight the serious inadequacy of the Bill, which has been repeatedly watered down. While its primary aim has been to end no-fault evictions, it offers no clear timeframe or commitment as to when this will be done, reneging on promises made to renters over five years ago.’
The Renters Reform Coalition, which is made up of 20 leading organisations – one of them being the JRF – was created to ensure the new Bill favours tenants’ rights over private landlords’.
Darren added: ‘There is still time to do the right thing. Ministers must table amendments to the Bill that reverse the delay to ending Section 21 or no-fault evictions. The Bill must also limit in-tenancy rent increases to the lowest of either inflation or wage growth to prevent landlords from pricing tenants out of their homes.’
Echoing a similar tone, Anthony Kyriacou, CEO and founder of Krispyhouse, has claimed that currently, the Bill is failing the UK rental market.
‘Despite the plethora of amendments suggested by government MPs and the Labour Party, the Bill in its current state still does not strike the right balance between the interests of landlords and tenants,’ Anthony said. ‘The intention is noble, to give tenants better security of tenure, more certainty over their future in a tenanted property, while trying to ensure the Bill does not make the private rental market so unattractive that landlords don’t continue to leave the market as they have been doing for the past few years.’
Anthony continued: ‘Now spanning more than 112 pages and set for a second reading in the Commons [today], the Bill still fails in its purpose to streamline the needlessly complex property market, while also not meeting the real needs of both tenants and landlords. As drafted, I fear that more landlords will decide to leave the market, leaving tenants in a worse position as stock diminishes, prompting a further rise in rents.’
As well as looking to abolish no-fault evictions, the Bill will also mean tenants won’t be able to give two months’ notice leave until they have been in a property for at least four months. Student housing will also be given a new ground for possession to ensure landlords can retain the annual cycle of tenants.
Despite apprehensions, Ben Beadle, chief executive of the National Residential Landlords Association has said that the introduction of the Bill is great news.
‘This Bill delivers a fair deal for tenants and responsible landlords. In the interests of certainty for the sector it is now time to ensure the Bill passes through Parliament,’ Ben said. ‘For renters, the Bill will abolish section 21 repossessions and fixed term tenancies, introduce a Decent Homes Standard for the sector, a new Ombudsman and Property Portal which landlords will have to join as well as measures to protect families and those in receipt of benefits from discrimination.’
Although, with this being said, Ben also noted that ‘the tenant group, Generation Rent, has rightly warned that landlords selling properties is ‘a leading cause of homelessness.’
Ben said: ‘The only answer to this is ensuring responsible landlords feel confident enough to stay in the market. Greater security for tenants will mean nothing if the rental homes are not there in the first place.’
Image: Heidi Fin
800,000 jobs deemed ‘insecure’ in London
A new report from the Living Wage Trust has found that the capital is the region in the UK with the highest number of insecure jobs, with 80,000 falling into the category.
The research, which was published this morning, included analysis from data from the Office of National Statistics (ONS), which found that that workers in London are more likely to have jobs that involve variable working hours or shift work compared to the rest of the UK – 64% of Londoners work these types of jobs compared to 54% outside of the city.
In addition, experts discovered London grafters are more likely to experience shift cancellations – 35% of Londoners with variable hours said they have experienced unexpected shift cancellations compared to 25% of workers within the rest of the UK.
Alone, these findings are far from satisfactory, but paired with the continuing cost-of-living crisis, it makes them all the more devastating. From the workers who frequently experience shift cuts, 92% claimed they don’t receive their regular pay when this occurs, making it even harder to make ends meet.
However, in a bid to provide some support, Citizens UK is calling on the next government to introduce policies that will strengthen people’s rights and access to predictable, sufficient working hours. This would involve introducing a new right to an employment contract that reflects actual hours worked; requiring employers to provide four weeks’ minimum notice of shifts with reasonable compensation for short notice shift cancellations; and requiring employers to provide a minimum number of guaranteed hours.
Against this backdrop, the UK’s largest people-powered campaign group who work towards achieving equal rights, have also set up the Making London a Living Wage City project, which is working to tackle issues of low pay and insecure work through Living Wage and Living Hours accreditations. It aims to put over £635m back into the pockets of low paid workers and ensure at least 10,000 workers in London benefit from the security of Living Hours by accrediting businesses to become Living Wage and Living Hours Employers.
Michael, a Driver Fitter who works in the Newham area for Enabled Living – a council owned company which provides a number of services, including medical equipment, to help Newham residents live independently, said: ‘Working at Enabled Living allows me to have a fair wage, rely on secure shifts and I have working hours that help me look after my children and elderly parents. It has changed my life for the better.’
‘I previously worked in retail and often worked a lot of overtime and had much longer days, but everyone was always paid the same, despite extra hours worked,’ Michael said. ‘I was never able to support my family the way I can now. I couldn’t give my daughter the time she needed to learn and develop. The money I earn now has allowed me to pay for extra curriculum tuition for my daughter, which has allowed her to pass her 11+.’
Michael added: ‘I don’t think she’d be in that position if I wasn’t working for a Living Hours employer. Having decent and regular hours has allowed me to plan ahead for the future, this helps not just myself but my family too.’
Gina Rodriguez, a previous hospitality worker and leader on the Making London a Living Wage City Steering Group, said: ‘The issue of low pay remains so close to my heart. It makes me sad to know there are people right now who are living how I was 15 years ago – working hard but still in poverty. With the cost-of-living crisis, too many low-paid workers are worrying about whether they can afford to turn the heating on during winter or if they’ll be able to afford groceries. This shouldn’t happen in one of the richest cities in the world.’
Image: Raul Varzar
Mayor of London pledges to end homelessness under one condition
Housing association agrees new sustainability-linked funding
Savills Financial Consultants has helped a Manchester-based housing organisation secure three new deals worth £284m with Santander, NatWest and ABN AMRO.
Great Places Housing Group have recently outlined plans to invest and deliver much-needed affordable properties in communities across the North West, Yorkshire and Derbyshire but, there was one minor factor holding them back, money.
However, Savills Financial Consultants have stepped in and helped the group secure three new deals. Funding of £109m and £100m has been agreed with existing lenders Santander and NatWest Bank and a new deal has been struck with ABN AMRO worth £75m. All loans are revolving credit facilities (RCFs).
Each of the three RCFs contain sustainability-linked performance measures which will provide a reduced interest rate if Great Places meet agreed energy efficiency targets on new and existing homes.
Mike Roche, director at Savills Financial Consultants, said: ‘We are delighted to continue and develop our relationships with NatWest and Santander and welcome ABN AMRO as a new banking partner. We received strong interest from the banking sector for this transaction and it is pleasing to move forward with sustainability-linked funding. Thank you to the Great Places team and Savills for their insight and support.’
‘There were a significant number of moving parts with these deals, so it is a testament to the Great Places team that they have been able to handle the process so diligently,’ Mike added. ‘The Savills Financial Consultants team has really enjoyed helping Great Places secure this increased financial capacity at the right pricing to help deliver their aims.’
Great Places’ current plans include further increasing resources to improve property conditions and customer services, as well as ambition to develop around 9,000 new affordable homes during the period 2020-30.
Martin Skinner, relationship director at NatWest, said: ‘We are a major lender to the UK affordable housing sector and are delighted to continue to support the important work of Great Places in providing much-needed social housing to the region. The RCF structure, coupled with sustainability-linked performance measures, will lead to more energy efficient homes across the North West, Yorkshire and Derbyshire.
‘We are proud to have announced that in 2023 we completed nearly £3bn of new funding to help more people and families have access to housing. We support around 200 housing associations across the UK and are proud to announce our ambition to provide a further £5bn in funding to support the housing association sector by the end of 2026.’
Image: Great Places
New affordable homes have begun welcoming residents in Buckinghamshire
New Somerset affordable homes plan rectified by major government grant
Thames Water to increase bills by over 40% to address debt crisis
The UK’s largest water and wastewater organisation is trying to persuade the regulator to let it raise consumer bills by 44% within the next five years.
Thames Water has been facing a huge debt crisis which has started rumours that the organisation could be taken over by the government. However, today, 22nd April, the supplier said it had updated its spending plans for 2025 to 2030 after discussions with Ofwat, the industry regulator.
The company has claimed it will spend a further £1.1bn to address environmental concerns over dumping in the sector, however it is estimated that Thames Water has around £14.7bn in debts and has come under fierce criticism for water leaks and sewage spills.
Last month, when Oxford and Cambridge hosted their boat race, both crews were issued safety advice to avoid swallowing splashed water from the Thames and last week, Steve Backshall described the river pollution as ‘toxic’ after Bangor University analysis found high levels of norovirus and E. coli in water samples that were taken from the river.
The details of what the £1.1bn will be spent on remains unclear and the new total investment of £19.8bn will require customer bills to rise by 40%, reaching an annual average bill of £608.30 by 2029-30.
Originally, Thames has proposed investing £18.7bn between 2023 and 2030 and increasing consumer bills by 40% on top of inflation, but Ofwat dismissed this plan.
Mike Keil, chief executive of the Consumer Council for water, said: ‘On the surface the proposal for more investment from Thames Water is a positive step for its customers that have endured some of the worst customer service in the sector.
‘We should not lose sight of the fact that only 16% of its customers thought the company’s proposed bill rises in its five-year plan were affordable. This announcement appears to offer nothing to ease the fears of those already struggling to pay.’
Thames Water aren’t the first organisation planning big price hikes over the next few years. In October 2023, Southern Water proposed a 66% price rise on top of inflation, while Severn Trent put forward a 37% increase.
It is thought that a decision will come from Ofwat at a meeting held on 23rd May, with a ‘draft determination’ of what companies will be allowed to charge from next year on 12th June.
Image: Kevin Grieve
First-time buyers are facing the toughest housing conditions, here’s how to help
Neal Hudson, from the Building Societies Association (BSA), has completed new research offering potential policy solutions that can help ease pressures faced by first-time buyers.
Within the new report, which was published this morning, Neal Hudson suggests home ownership among younger people has been in decline for the past 20 years and it is showing no signs of improvement.
‘Becoming a first-time buyer is possibly the most expensive it has been over at least the last 70 years, but a properly functioning housing market is dependent on first-time buyers being able to afford their first home,’ Hudson said. ‘New thinking and radical changes are needed.’
In the report, which can be found in full here, Hudson offers various solutions that could improve the property market, from financial support to bridging the gap between ageist stereotypes. However, Hudson claims that no change will be made unless the government initiates the first move.
In the report, Hudson said: ‘[The] government should commission an independent review of the first-time buyer market, regulation and government intervention, which would deliver a clear starting point for action. The objective should be to increase the number of true non-returner first-time buyers, both now and in the future.’
Against this backdrop, the research highlights a series of suggestions that the government could do to improve the market. These include:
- Prioritising improving the supply of both existing and new homes including increased delivery of affordable homes
- Revising the planning system with more of a focus on strategic planning and less focus on development control
- Reform property taxation to increase market liquidity and encourage more efficient use of existing homes
- Ensuring Stamp Duty Tax continues to favour first-time buyers above anyone else
Arguably, the publication of this research couldn’t have come at a better time. The statistics found add to an already sky-high stack, showcasing that without proper addressal, the problem will continue to accelerate.
The report found that currently, buying a home requires two above-average incomes, which mirrors recent figures that have been published by the property portal Rightmove. The organisation found that a lot of the activity in the housing market since the beginning of 2024 was among large, four-bedroom properties.
These types of homes will be out of reach for majority of first-time buyers, but Rightmove said asking prices were staring to increase again.
In addition, the Resolution Foundation think tank has also published data recently which remarked that the most common living arrangement for an adult aged between 18 and 34 in 1997 was being in a couple with children, but now it was living with your parents.
Although, findings from the latest Census research highlighted that young people would even find it difficult to go into a rented property whilst saving up to buy their own home, as private rental costs in the UK have risen by a shocking 9.2% within the last year.
Image: Thought Catalog
Teamwork: First-time buyers group together to buy properties
Five golden rules unveiled for Labour’s ‘grey belt’ plan
In an attempt to boost housing supply councils will now be required to build on brownfield sites and low-quality parts of the green belt will be released for construction.
This morning, Sir Keir Starmer announced five new rules that will help England out of the ‘housing emergency’ created by the Conservatives. Starmer said the issue is ‘engulfing a generation of hard-working aspirational people’.
Part of the plans include Labour sticking to its brownfield first policy, but Starmer has said the party will also be releasing ‘poor quality and ugly areas’ of the green belt.
Labour said that plans must target at least 50% affordable housing delivery on grey belt land that is released.
Following this, Knight Frank, a real-estate firm, has found 11,000 grey belt sites in England and has estimated that they could be used to deliver around 100,000 new family properties, potentially increasing to over 200,000.
Commenting on the news, Kate Henderson, chief executive of the National Federation of Builders (NFB) said: ‘Building on brownfield land alone will not deliver enough homes to solve this crisis, so it’s right to consider how our approach to the green belt can better serve our country and our communities.’
However, Conservative Party chairman, Richard Holden, said: ‘Only Rishi Sunak and the Conservatives will respect local communities building the right homes in the right places which has delivered one million homes over this Parliament and sticking to the plan to reduce inflation and get mortgage rates down to help first-time buyers.’
In addition to announcing the brownfield and grey bely policies, the other rules outlined by Labour today include:
- Prioritising affordable homes
- Boosting public services and infrastructure
- Protecting genuine green space
Rico Wojulewicz, head of policy and market insight at NFB, said: ‘The devil will always be in the detail, but Labour appears to understand that placemaking requires input and support from all quarters and that the housebuilder’s job is to build the homes, not control what infrastructure is required, how offsite nature links up to a new development and why a site is allocated for new homes.
‘Alongside other announcements and discussions, such as reforming compulsory purchase and having more onsite biodiversity opportunities, it feels as though we have a political party which understands the problems planning uncertainty causes for housebuilders, communities, nature, and society at large.’
Echoing a similar tone, Lawrence Turner, director of Boyer, has claimed that we need a government who are genuinely going to deliver on housing targets.
‘As the UK’s housing crisis continues to worsen, the need for a joined-up approach to deliver more homes is urgently required,’ Lawrence said. ‘Addressing the housing crisis needs to encompass the use of brownfield and greenfield sites, the establishment of new settlements and the carefully considered release of Green Belt land.’
Lawrence added: ‘The latter is something that the current government has avoided for the last 14 years. Kier Starmer is correct when he says: ‘We cannot build the homes Britain needs without also releasing some land currently classed as green belt’.
‘It is important to recognise that green belt land does not solely comprise areas of pristine countryside. In fact, many green belt areas are used for industrial purposes, golf courses, or intense agricultural activities – which Keir Starmer refers to as ‘grey belt.’ This distinction is crucial, as it dispels the misconception that all green belt land is environmentally valuable and must be preserved at all costs.’
With this in mind, Labour have said that they have ruled out building on ‘genuine nature spots’ and will require developers to include improvements to existing green spaces in their plans.
Angela Rayner, deputy leader of the Labour Party, said grey belt land ‘should not be off limits while local people are kept off the housing ladder’, adding that much of the green belt ‘isn’t green, rolling hills, but poor-quality scrubland, mothballed on the outskirts of town’.
Image: Shutterstock
App launched to support good landlords and evict the rogue ones
The new digital platform will provide landlords with resources to help them keep on top of property and tenant management, administration and service delivery.
The continued cost-of-living crisis has had major repercussions on the private rented sector. Squeezed budgets have meant people can’t afford to pay current rent prices and increased costs on certain resources have left landlords struggling. However, a new app, which was launched this month, could help to address the latter.
Created by RoomApp, the new Exempt Social Housing Excellence (ESHE) platform, is a one-stop service hub providing landlords with the ability to access a database that is comprised of all the information needed to stay on top of property management, without the hassle of having to afford the resources for and complete endless amounts of paperwork.
The paperless task management system helps landlords to stay in-line with evidencing legal obligations, complying with service quality standards, actioning repair requests from tenants or staff recruitment and development.
Against this backdrop, the technology is also good for filtering out the bad landlords who attempt to rip tenants off by placing them in poorly kept homes. According to research from the Resolution Foundation, one in six young adults in the UK are living in dire conditions which is severely impacting on their physical and mental health.
Camarlo Richards, founder of ESHE, said: ‘There is a core body of ‘good landlords’ in the exempt supported housing arena who care deeply about their tenants and the quality of housing they provide.
‘However, ESHE was born of the unfortunate acknowledgment that there are unscrupulous landlords out there, defrauding the system of millions each year, often disregarding their safeguarding responsibilities, some even actively targeting vulnerable people.’
With this in mind, ESHE’s tenant application, RoomApp, is designed to help support vulnerably housed people and/or those who’re facing homelessness. The technology provides a function where individuals can search for suitable properties and manage their end-to-end tenancy.
Camarlo added: ‘ESHE is the quality assured gold standard. Easy and efficient for good landlords to use. It stops rogue landlords operating and in doing so, raises living standards, reduces support needs and costs while easing the pressure on our straining housing system.’
As well as helping the property sector, councils and NHS staff members have also expressed an interest in ESHE.
Image: Camarlo Richards
Airbnb are pushing landlords to become more energy efficient
Government introduces protections for renting families and crackdown on rogue landlords
Construction complete on £12m facility for army musicians
Pick Everard have announced the completion of a new facility for the Royal Military Academy Sandhurst (RMAS) to host rehearsals and performances.
According to Pick Everard, a national multi-disciplinary consultancy working within the property sector, the new establishment, which held its topping out ceremony last September, can now house all 54 musicians serving under RMAS – the organisation where all officers in the British Army are trained to take on the responsibility of leading their soldiers.
Funded by the Defence Infrastructure Organisation (DIO) under the Defence Estate Optimisation (DEO) Army Programme, the refurbished buildings include an instrument store, music library and rehearsal rooms, as well as offices, storage, changing rooms, and a crew room that will support performances such as passing out parades and Sovereign’s parades.
Commenting on the achievement, Matt Carter, director at Pick Everard, said creating the new development has been a ‘complex’ yet rewarding project.
‘This has been a complex undertaking, which involved close collaboration with our project partners to navigate several onsite challenges, including ecology operations to ensure our work would not interfere with natural habitats present onsite,’ Matt said. ‘Our teams were committed to delivering a facility of the highest standard, with green credentials, which is reflected in our DREAM ratings.’
Matt added: ‘British Army Band Sandhurst musicians now have a modern and acoustically optimised environment, that is befitting of their reputation for excellence on the UK Defence stage.’
In addition to helping RMAS, the new development is also beneficial to the environment. Air source heat pumps, solar panels and programmable lighting systems have been fitted within the building.
Against this backdrop, social value was also integral to the project, with the team providing free decoration services to community centres nearby. These centres will also host coffee mornings with the veterans to discuss and raise awareness about mental health.
Debs Thorne, Joint Bands School Programme Manager, said: ‘This project is a fantastic example of the significant investment underway across the Army estate, to support military training and future capability through delivery of modern, sustainable infrastructure. I have been really impressed by the quality of the finished buildings and I trust that the British Army Band Sandhurst will soon feel at home in their new, purpose-built music facility.’
The Ensemble Band are due to move into the building this summer and an official opening event is planned for autumn 2024.
Images: RMAS
Henry Brothers celebrates key development stage in Staffordshire project
Here are the areas in England with the least energy efficient homes
New research from Envirohomes Renewables has revealed that properties in the Isles of Scilly are the worse affected as just 14.9% have an EPC rating of band ‘c’ or above.
The Scottish-based organisation studied data from the Office of National Statistics (ONS) which displayed the percentage of homes in each local authority with an Energy Performance Certificate (EPC) of band ‘C’ or above.
Properties with an EPC rating of band ‘C’ often meet the minimum energy efficiency standards required by building regulations. However, having a ‘B’ or an ‘A’ rating is preferred.
According to the research, the Isles of Scilly, which is located off the Cornish coast, has the lowest number of energy efficient homes in England. The data examined found that in 2022, just 14.09% of properties in the area had an EPC rating of ‘C’ or above – the lowest in England by almost 10%.
However, homes in Pendle, which is situated in Lancashire, aren’t far behind. Experts found that a mere 21.83% of properties here reach the required EPC ratings. In addition, only 24.84% of homes in South Essex have EPC ratings of ‘C’ or above.
Research from Envirohomes Renewables.
Commenting on the news, Ross Jones, director of Envirohomes Renewables, said: ‘While there are many ways you can save money on energy for your home, having a low energy efficiency rating can make this very difficult from the start, and costs will add up, and with the current cost of living this can be a serious problem. However, if you live in one of these areas, you can improve your EPC rating by installing insulation, changing your lighting, replacing your boiler, and more.’
The new research, which was published earlier this week, coincides with government plans to ensure all fuel-poor homes have an EPC rating of a least band ‘C’ by 2030 and as many homes across the country as possible are rated a band ‘C’ or above by 2035. Although, the figures uncovered by Envirohomes Renewables show a lot more work needs to be done to make sure these goals are met.
Image: Andreas Gücklhorn
Goals set to drive energy efficiency in historic homes
Two steps forward, one step back: Sunak scraps energy efficiency housing targets
UK inflation has dropped to 3.2% which isn’t good news for interest rates
The Office of National Statistics (ONS) has revealed inflation rates hit their lowest level since September 2021 last month, leading experts to believe that the Bank of England is ‘likely to maintain interest rates for an extended period.’
According to the figures from the ONS, which were revealed this morning, the drop in food prices, particularly in meats and crumpets, caused inflation to fall from 3.4% in February to 3.2% in March. Although this is a positive outcome, city economists and the Bank of England had forecast a slightly larger decline to 3.1%.
Against this backdrop, economists are expecting a further decline in April, with the potential to fall below the Bank’s 2% target after a sharp drop in household gas and electricity bills to the lowest level for two years.
Commenting on the news, chancellor Jeremy Hunt, said: ‘The plan is working: inflation is falling faster than expected, down from over 11% to 3.2%, the lowest level in nearly two and a half years, helping people’s money go further.’
However, Rachel Reeves, the shadow chancellor, has said that today’s outcome is not a win for the Conservative party.
‘Conservative ministers will be hitting the airwaves today to tell the British people that they have never had it so good,’ Ms Reeves said. ‘However, after 14 years of economic failure under the Conservatives, working people are worse off.’
Ms Reeves added: ‘Prices are still high in the shops, monthly mortgage bills are going up and inflation is still higher than the Bank of England’s target.’
Echoing a similar tone, Daniel Austin, CEO and co-founder at ASK Partners, said: ‘Decreasing inflation suggests that the Bank of England is likely to maintain interest rates for an extended period, particularly considering the signs of economic recovery we’ve witnessed.
‘This all points to a positive domestic story of an economy exiting a mild recession but does mean that pressure will remain on those servicing debt and with ongoing global market uncertainty surrounding the Middle East crisis, the coming months are set to be shaky.’
‘In the real estate sector and as property loan extensions expire, borrowers will face the choice of injecting fresh capital, returning assets to lenders, or selling in a soft market,’ Austin said. ‘The assets hitting the market will kickstart the cycle and offer opportunities for capital-endowed buyers, who view this as an opportune moment to acquire assets at significant discounts.’
The latest inflation news, comes ahead of the next Bank of England’s meeting where they will decide on whether to retain interest rates or decrease them. The meeting is due to take place on 8th May 2024.
Ahead of the meeting, John Glencross, CEO and co-founder of Calculus, said: ‘Today’s data shows UK inflation is falling, although still above the Bank of England’s target of 2%. If inflation continues to fall the Bank of England may start to cut interest rates by summer which could bring a renewed sense of optimism for investors, consumers and British businesses alike.
‘In his Spring Budget, the Chancellor spoke on his belief that the success achieved in tackling inflation will soon convert to economic growth, placing particular focus on the strength of the UK’s technology sector. Supporting British growth companies could help improve the near economic horizon by boosting GDP and increasing job creation.’
Image: stux
Inflation: Figures remain steady but families will still have to go without
Inflation: Interest rates stuck at 5.25% for fourth consecutive time
EV battery factory plan dropped for good
After three years of uncertainty, Northumberland City Council have ditched plans to build a new EV battery factory in favour of a computer data centre.
In 2021 Britishvolt, a UK startup manufacturer of lithium-ion batteries, proposed plans to build a new EV battery factory in Cambois, Northumberland, however the organisation collapsed at the beginning of 2023 after running out of money, which caused more than 200 people to lose their jobs.
The battery plant, which was going to be known as the ‘gigafactory’, was expected to create 3,000 highly-skilled jobs and another 5,000 indirect jobs in the wider supply chain, and had been touted as an example of ‘levelling up’.
However, following the companies collapse, Northumberland County Council have said they are now considering buying back the energy park, which was home to Britishvolt, in exchange for up to £110m from private equity firm Blackstone.
The investment firm plans to build a computer centre, known as a hyperscale data centre campus on the grounds. These types of establishments are often used by companies including Google, IBM and Microsoft and typically comprise more than 5,000 severs and cover 10,000 sq ft.
As this project is so big, the local authority have claimed that the plans would create more than 1,600 direct jobs and over 2,700 indirect roles over the course of its development.
Currently, there have been no details released about which organisation will be running the data centre, but the council is set to meet on 23rd April to speak about the plans in more detail.
Commenting on the news, Scott Dickinson, said that although letting go of the previous battery factory plan was ‘disappointing’, the new proposal shows a lot of ‘promise’.
He added: ‘The local community shares a sense of caution but is determined to support and ensure the success of this endeavour.
‘The group pledges unwavering support for all initiatives and is eagerly anticipating crucial milestones such as the submission and review of planning applications.’
Image: Britishvolt
Mayor of London pledges to end homelessness under one condition
Sadiq Khan has promised to end homelessness in the capital city if he is re-elected next month. However, he said his plans will only be successful if he works alongside a Labour government.
With just over two weeks until local elections commence, yesterday, 15th April 2024, Sadiq Khan made a speech in Waterloo in which he promised to end rough sleeping in London by 2030 if he is re-elected as the Mayor.
Speaking at St John’s church, Mr Khan claimed he would work to create more rough sleeping hubs and strengthen relationships between boroughs, businesses and charities. In addition, he followed up his vow with a promise of £10m extra spending over the next three years on top of City Hall’s current annual homeless budget of some £36m. This promise comes as the number of people sleeping rough in London has hit new record highs.
According to the latest figures, 4,389 people were found to be sleeping on the streets between October 2023 and January 2024 – compared with 2,561 in 2016, before Mr Khan was elected.
By 2021, after a year of Mr Khan being in post, the number of people sleeping rough in London had fallen by 19% year-on-year.
In his speech, Sadiq Khan said that the reason for having a 2030 deadline to end homelessness was because the promise had been ‘synced’ up with national rather than mayoral politics.
Mr Khan said: ‘It’s possible the general election won’t be until January 2024. The parliamentary term is five years, and so we’ve synced the pledge with the next Labour government’s timelines.’
Against this backdrop, Mr Khan has pinpointed the delay in banning no-fault evictions as one of the root causes as to why so many people have tragically resulted to sleeping on the streets.
‘The causes of rough sleeping we can’t deal with without a change of government,’ Mr Khan remarked. ‘We know the causes of rough sleeping. One out of four people sleeping rough was formerly a tenant in private accommodation – that’s why ‘no fault’ evictions have got to go.’
The mayor added: ‘We also know some of the welfare benefits changes made by the Government have been a source for those sleeping rough. That’s got to go as well.
‘If there’s a Labour Government, we’ll have 1.5 million new homes [over five years] across the country. [We’ll get a] big chunk of those in London.
‘In relation to landlord licensing, if we had a Labour government, we could have better quality accommodation across London, which would make it less likely for people to have to leave their homes.’
However, Susan Hall, Conservative mayoral candidate, has branded the pledge as ‘another promise that Sadiq Khan will fail to deliver.’
Ms Hall said: ‘Given his appalling record on housing. Sadiq Khan has only started building 4% of the affordable homes he promised in the latest programme, and it is his failure that has kept people stuck in temporary accommodation and made it harder to get rough sleepers off the streets.’
The latest data from the Combined Homelessness and Information Network (CHAIN), which provides quarterly and annual statistics on rough sleeping in the city, found that 1,070 of the individuals spotted on the streets between January and March this year were in and around the West End boroughs of Camden and Westminster.
Following Sadiq Khan’s announcement, various industry experts have voiced their opinions including John Glenton, executive director of care and support at Riverside, who has claimed that the pledge is promising and exactly what the city needs right now.
‘It is heartening to hear Sadiq Khan’s commitment to end rough sleeping,’ John said. ‘The latest rough sleeping figures for October to December 2023 showed we had the largest number of people sleeping rough on the streets of our capital ever recorded during a quarterly period with 4,389 people identified as sleeping rough.’
John claimed: ‘These figures demonstrate a growing humanitarian crisis on the streets of London.
‘We wholeheartedly agree with Sadiq’s plan to expand the number of rough sleeping hubs in London and his aim to strengthen relationships with boroughs, charities and businesses to achieve this aim.’
The government have issued a final warning for residents looking to take part in local elections as registrations to vote closes at midnight tonight. Local elections are due to start on 2nd May 2024.
Image: chan lee
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Could a politics-free development sector become reality? Because that’s where we’re headed
With the General Election just around the corner, Toby Lambert, head of residential development at Carter Jonas, discusses how politicians urgently need to buck their ideas up regarding the property sector.
The position of the two main political parties could not be more diametrically opposed: Labour as YIMBYs, Conservatives as NIMBYs; Labour in support of Green Belt release, Conservatives opposed; Labour committed to housebuilding targets for both market and social/affordable housing, Conservatives blocking development through indecision and delay. This contrast is exemplified in the fact that housebuilding was a major focus of Labour’s autumn conference, whereas it was notably absent from the Conservatives’ conference agenda.
The need for change
Most of us in the development industry recognise the need for change. As the Home Builders Federation (HBF) says in the introduction to their recent report Firmer Foundations, ‘The UK is in the midst of a housing crisis, where politics has too often got in the way of practical solutions’. Its ten-point plan for government action states that England is the hardest place in the developed world to find a home, with the lowest rates of vacant homes across all OECD nations.
Despite there being demand for change, however, I am beginning to question whether politics is the force to bring it about. Should something as important as a home become a political football, with approaches to development radically shifting with political whim or a change of government, and should the output of the development industry be so intrinsically linked to politicians’ and pundits’ desire to talk up or down the housing crisis?
It was over a year ago, following a rebellion by backbench Conservative MPs, that Michael Gove promised to make government-set housing targets more flexible. The statement resulted in many local authorities stalling their local plans in anticipation of further clarification – clarification which is still awaited. And whilst the new NPPF shows that we delivered 232,820 net additional dwellings in 2021/2022, this still falls short of the government’s stated target of 300,000 homes to be built year on year from 2025.
The shortage of consented land is compounded by delays in the planning system – the latter the result of the failure to resolve the nutrient neutrality problem, the under-resourcing of local planning authorities and the inertia in local plan production, especially in authorities dependent on Green Belt release for growth.
The impact on the development industry is intense competition for available land, with higher bids than anticipated and less of a variance between conditional and unconditional offers. This immediately factors into viability assessments. In some cases it dilutes the quality of new communities or substantially reduces the benefits that can be provided – from open spaces and community infrastructure to social / affordable housing, and it invariably perpetuates house price rises. With the PLC housebuilders competing for smaller sites than before, SME housebuilders are often priced out of the market. Unsurprisingly, the HBF despairs of a housing crisis, ‘decades in the making’.
In part a consequence of slower development, in part a consequence of increased house prices and increased mortgage rates, sales rates are currently as low as 0.5 sales per week per operational outlet compared to an average of 1.5. This then impacts on financing of development schemes, which is already stretched by the considerable hike in interest rates.
With each of these factors the result of recent political decisions, I believe the argument in favour of separating land from politics has never been more valid. There are many levels on which this could occur, and in doing so substantially benefit the functioning of the sector and the supply of new homes.
A long-term approach to land assembly
Land assembly is a long-term process which invariably extends beyond a single political term. But the release of land must be a continual process – not one to be delayed because greater restrictions on the Green Belt (under the Conservatives) might raise values or rushed through because the potential for CPO by Local Authorities (under Labour) might reduce values.
Strategic planning should operate outside the remit of local authorities, the elected members of which are too easily swayed by constituents’ sentiment, especially in the run up to an election.
Consistency in planning gain
Greater clarification and consistency are required over the provision of community benefits, social / affordable housing, biodiversity net gain and the many other demands made on developers throughout the planning process – demands which have the potential to threaten the viability of an entire scheme when announced at a late stage in its conception.
The proposed Infrastructure Levy is probably not the ideal – not least because, being determined by development profits – it cannot be budgeted for and therefore considerably increases uncertainty.
Greater consistency in housebuilding input can only be achieved through greater consistency in the requirements made of developers.
Objectivity in decision-making
The developer’s utopia would include the abolition of planning committees. This would deliver the much-needed separation of development from local politics and an increased consistency and transparency in planning decisions, based on universal, objective principles. The policies need not be put in place by the Secretary of State as is currently the case with the NPPF (although that said, at the time of writing, the revisions first proposed a year ago are yet to be implemented) – but might be better drawn up by nationally based arms-length organisation.
While the Regional Spatial Strategies of the early 2000s were far from utopia, the majority of the development industry would, I believe, agree that they are the closest we have been to achieving utopia when it comes to allocating land for development, and that coupled with the ‘zoning’ process that is proven to work in other countries, may provide the best solution to date.
Longevity and political separation in planning principles
This process would have the further benefit of allowing policies to extend beyond a five-year parliamentary term, as is necessary for example in implementing a wholescale review of the Green Belt, establishing investment zones or new towns, or of any development reliant on new transport infrastructure.
The positive elements of politics
With the development industry representing such a large portion of the UK economy, the variance in economics, market forces and social demands would mean that politics could not be disassociated from the sector entirely.
The involvement of politics would be largely fiscal – for example, in providing initiatives for first time buyers to get onto the property ladder or incentivise downsizing through Stamp Duty reductions. Both are crucial to re-starting the market after a slow-down but may require a shorter-term, closely monitored application which does not create a disruptive bump in the market (as was said of Help to Buy). A single initiative to encourage baby boomers to downsize could release trillions of pounds of equity from homes, ultimately cascading down to ensure we stimulate the market from the bottom up.
Conclusion – is politics-free development a reality?
Within its first 100 days, the 1997 Labour government took interest rates out of politics. This move was previously unimaginable – although it has largely been seen as successful. Could a 2024 Labour government take planning out of politics? Perhaps not – not because it would be impossible to do so, but because the Labour party is intent on resolving the housing crisis, and to succeed in doing so would not only be an unparalleled achievement but would almost certainly guarantee a second term. However, elements of the planning system, as we saw with Labour’s Regional Spatial Strategies and Regional Assemblies, can be successfully disentangled from politics to the advantage of all involved, politicians included.
Images: Gary Walker-Jones, Sidharth Bhatia and Ivan Bandura
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Global infrastructure business flourishes following Leeds office move
One of Yorkshire’s leading transport planning, engineering and infrastructure specialists is bolstering its commitment to developing talent in the West Yorkshire city.
SYSTRA, which was founded in July 1992 and means ‘Systèmes de Transports’, has recently announced that it has relocated to Leeds to assist in levelling up the city.
Now situated on 114 Wellington Street, the new office provides a modern open-plan creative space that helps SYSTRA staff work to the best of their ability. Members of the team who are now based in Leeds are working on projects for various local clients including West Yorkshire Combined Authority (WYCA), Leeds City Council, Kirklees Council, and national infrastructure organisations such as HS2, Network Rail, Rail Safety and Standards Board (RSSB), and National Highways.
In addition, SYSTRA are also involved with the Transpennine Route Upgrade (TRU East) electrification project, which will transform the rail passenger experience between Leeds and York. It aims to do this by improving capacity and making journeys more reliable, safer and sustainable.
The positive news from SYSTRA to help improve train experiences has been well received as it seems these days, all that seems to make headlines is the fact that trains are either on strike or routes are getting cut.
Nick Salt, CEO of SYSTRA, said: ‘We are delighted with our new space in Leeds. It is a bright modern space which complements our colleague’s shining skills across our range of services. We look forward to growing the business through delivering sustainable infrastructure and creating places that thrive across Yorkshire.’
Likewise, Sebastien Dupont, managing director of consultancy at SYSTRA, has remarked that despite having a presence in Leeds that dates back ‘more than three decades’, it is ‘wonderful to have a newly-created, modern office space to reflect our brand and our ambition to deliver first-class services.’
Sebastien added: ‘We are very much looking forward to growing our portfolio of work in Yorkshire and continuing to support our clients on complex sustainable infrastructure projects in the UK, Ireland and around the world.’
Image: SYSTRA
David White appointed as SYSTRA’s new Director of Health, Safety, Security & Sustainability
Over 80,000 households have been threatened with homelessness following law delay
Research from a leading homelessness charity has found that inaction to scrap section 21 notices has meant 84,650 households in England have faced eviction in the last five years.
‘Everyone deserves a safe, secure place to live,’ according to Rick Henderson, chief executive of Homeless Link. However, according to the charity’s new research, this view doesn’t seem to be echoed amongst the Conservative Party.
Published this morning, the research found that 84,650 households in England approached local councils for support after facing eviction within the last five years. This statistic was discovered even after the Conservatives pledged to scrap section 21 notices, which allow landlords to end tenancies at will with just two months’ notice.
Theresa May, former prime minister of the Conservative party, was the first to announce that this legislation would be scrapped in April 2019, but fast forward five years and it is still yet to be done.
To conduct their research, Homeless Link analysed official data from the Department for levelling Up, Housing and Communities (DLUHC), which showed that homeless numbers peaked between April and June 2023, the period when the government introduced its renters’ reform bill pledging to end the uncertainty hanging over private tenants.
Against this backdrop, Ministry of Justice figures that were released towards the beginning of this year, found that more than 26,000 households had been thrown out of their homes by bailiffs after court proceedings following section 21 notices since the pledge.
Rick Henderson said: ‘It is clearly not right that someone can be evicted from their home for no reason with just two months’ notice. The government identified this in 2019 but its inaction has led to tens of thousands of households unnecessarily facing homelessness.
‘A huge shortage of genuinely affordable housing means when a household approaches their local authority with a section 21 notice, and the local authority has a statutory duty to help them, often all they can do is try to keep them in that property, find them another private rented property or, as a last resort, place them in temporary accommodation at huge expense.
‘Those who the local authority don’t have a duty to support tragically often end up sleeping rough.’
One tragic example of this is Kelvin, whose name has been changed for anonymity purposes. He was living in a privately rented London house-share for three years when one day, out of the blue, him and his housemates received a letter from their landlord saying they were being evicted with no given reason.
‘I was so shocked and upset by what had happened,’ Kelvin said. ‘It really impacted me. All of a sudden, even though I was keeping up with my rent and my bills, I was homeless. I spent time sofa-surfacing while I figured out what to do, and all the time kept working.’
At the time of eviction, Kelvin wasn’t provided with enough time to move all of his belongings out of the house-share before the locks were changed.
However, Kelvin’s story did end on a positive note, as he found a safe place to stay at Your Place – a charity that provides people on the streets with temporary accommodation.
Kelvin said: ‘It’s peaceful and I’m able to focus on my career and getting back on my feet. My keyworker has been awesome; she’s always really supportive and I’m so grateful to have the support and stability that I didn’t have before. But I’ve lost trust in private landlords and things need to change so that this doesn’t keep happening to people.’
Image: Allan Vega
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Project launched to build low-carbon housing for parentless children in Ukraine
SOS Children’s Villages Denmark (SOS DK) have created a scheme to help house children in Ukraine. Even before the tragic war erupted, the country was found to have one of the highest rates of children living without a stable home.
Today, 15th April 2024, SOS DK have launched their new initiative, which is otherwise known as the Children’s Living Project. The idea, which was made possible through the support of 11 charities and organisations across Denmark, is to create new, sustainable homes for children in Ukraine.
The project couldn’t have come at a better time. Even before Russian military forces entered Ukraine in 2022, research from Save the Children found that the country had one of the highest rates of children living in institutional care in Europe, with around 100,000 living in some form of residential care facility. However, since the war began, the problem has tragically escalated.
To help the ongoing crisis, the new project from SOS DK will see a cluster of buildings created in three different locations across Ukraine. Each cluster is set to feature homes for foster families, shared recreational and social spaces for both inhabitants and local communities, and social centres that will supply a range of mental health support for foster families as well as locals living in the surrounding area.
Commenting on the news, Mads Klæstrup Kristensen, managing director of SOS Children’s Villages Denmark, said: ‘The ongoing war in Ukraine has affected millions of children, leaving many of them without parental care, protection, and a safe space to call home. Our priority has always been to ensure children around the world have their needs and rights met to enable them to grow up in a caring home, thrive and become their strongest selves.
‘Through this project, we want to inspire better ways of caring physically, emotionally, and socially for children without parental care and help move toward de-institutionalization by demonstrating new, holistic solutions for alternative care environments.’
According to SOS DK, the new establishments will be constructed within existing neighbourhoods to help better integrate new families and make children feel as at home as possible.
Lee Petersson, CEO of the VELUX Group – one of the partners of the new project – claimed that the scheme will hopefully help inspire other organisations and authorities to act, as no one should have to experience what individuals in Ukraine are, especially children.
‘With the war causing unprecedented destruction across the country, we want to contribute with a more sustainable way of rebuilding homes in Ukraine,’ Lee said. ‘With our Living Places concept, we demonstrate that it is possible to build healthy homes with a low carbon footprint – and we are happy to contribute to this impactful project that helps secure a more promising future for children without parental care in Ukraine.’
Lee added: ‘Our contribution is small in the grand scheme of things, but the children who will be living in the new homes will grow up in an environment that promotes health and their wellbeing. We hope that this project will help inspire others to take action – both in terms of supporting the rebuilding of Ukraine, but also to transform the building industry.’
Image: SOS DK
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Another rise in GDP shows the UK are on track out of recession
Figures from the Office of National Statistics (ONS) show gross domestic product (GDP) rose by 0.1% in February, but despite positive indicators experts have warned ‘challenges still persist.’
January 2024 was potentially one of the wettest starts to a new year that has been experienced for a while. Conditions had major effects on construction and retail, but deposit this, new ONS data shows GDP increased by 0.1% in February, matching City economists’ forecasts and extending a recovery after growth in January was revised up from 0.2% to 0.3%.
Commenting on the news, Liz McKeown, ONS director of economics statistics, said: ‘The economy grew slightly in February with widespread growth across manufacturing, particularly in the car sector. Services also grew a little, with public transport and haulage and telecommunications having strong months.
‘Partially offsetting this there were notable falls across construction as the wet weather hampered many building projects.’
In addition to the data showing a growth last month, the latest figures also highlight the rise of 0.1% over the last three months to the end of February. This is the first time this has happened since last summer, with activity recovering from a slump last year as households cut back on spending amid the cost-of-living crisis.
However, Douglas Grant, group CEO of Manx Financial, has warned that despite a positive increase, individuals and businesses are still set to face financial difficulties.
He said: ‘The most recent GDP figures in the UK serve as a stark reminder that despite certain recent positive indicators, challenges still persist. This underscores the importance for SMEs to seize this moment to reassess their existing lending arrangements and strengthen their positions.
‘The data is reflective of separate research conducted by Manx Financial Group that reveals a significant shift in the financial landscape for SMEs. In contrast to the previous survey, where only 25% faced challenges, the current findings indicate that two out of five SMEs are now grappling with operational slowdowns or halts due to a lack of external financing.
‘The survey also underscores that 15% of SMEs seeking external finance or capital are unable to secure the necessary funds. These financial constraints, coupled with a potentially unprecedented and volatile environment marked by ongoing conflicts, multiple elections, a tightening labour market, and persistent cost-of-living challenges, pose obstacles to the prospects of SMEs and national economic growth.’
In addition to SMEs struggling, the research from the ONS shows that construction output collapsed by 1.9% on the month as heavy rainfall forced cranes to sit abandoned on building sites. The UK’s dominant services sector, which makes up about four-fifths of the economy, also struggled. Figures show the sector only grew by 0.1% in February amid weaker activity in retail and wholesale distribution.
John Glencross, CEO and Co-Founder of Calculus, said: ‘Following a surprise contraction in UK GDP at the end of last year, today’s data signals small consistent steps back towards growth for the economy. The slight growth seen in the second quarter indicates that the UK is steadily emerging from a relatively short recession in record time.
‘As we observe where the economy will head in Q2 and beyond, now more than ever we need to support UK smaller businesses, which ignite growth, increase employment, and drive innovation.’
Image: Towfiqu barbhuiya
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No infrastructure, no greenlight: Housing development rejected in Calne
An application to build up to 100 new homes on land east of Spitfire Road in Clane has been refused due to infrastructure concerns.
Robert Hitchins, a family-owned property company, submitted the application in 2022 to create ‘much needed housing in Calne’ however, Wiltshire Council denied planning permission after they found the proposal was contrary to multiple polices in the Wiltshire Core Strategy.
The application remarked: ‘The overarching vision is to create a distinctive development with a strong identity that responds to the local character of the site, its position close to newly build development and environmental context to deliver a new development appropriate to its location and setting.
‘The proposed development will create much needed housing in Calne in a sustainable location whilst improving public access across the site and to the wider pedestrian and cycle network.’
However, Calne Town Council and Calne Without Parish Council have expressed their concerns about the development of the new homes, particularly the location of them and their impact on local services.
The town council said: ‘The level of recent development in Calne has left a serious issue with infrastructure in the town and this application will worsen the situation.
‘Specifically, there is real concern that no additional doctors and dentists have been provided to address the additional housing numbers and residents are already experiencing issues in accessing medical and dental provision in the town and that this proposed development will only worsen this already very serious situation.’
Against this backdrop, 13 further representations were received, with residents raising issues such as the potential traffic congestion and loss of greenfield.
Wiltshire Council also discovered that the plans were contrary to multiple policies in the Wiltshire Core Strategy and denied planning permission for the development.
The case officer report said: ‘Issues of noise, odour and dust impacts arising from the immediate neighbour at Abberd Fields Farm have not been appropriately considered and addressed, resulting in a maintained objection from the Public Protection Officer.’
Overall, it was concluded that problems the development was causing outweighed the benefits, ‘particularly in light of the fact that the council can at the current time, demonstrate sufficient supply of housing land.’
Image: Jonny Caspari
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Single-family housing investments have grown fivefold – report
According to knight frank’s 2024 Single Housing Family (SFH) report, investment into the properties soared by £1.9bn last year as investors acquired or funded the development of over 6,200 rental homes.
Launched yesterday, the report found that the amount of money that has been invested into SFH represents a fivefold increase compared to the £388m committed in 2022.
Overall, SFH investment accounted for more than 40% of all Build to Rent investment in the UK last year, with the remainder targeting multifamily apartment schemes and co-living.
Jack Hutchinson, a partner in the residential investment team at Knight Frank, said: ‘The single-family housing sector is experiencing a period of significant growth, as evidenced by a fivefold surge in investment volumes in 2023, reaching £1.9bn, compared to the previous year.
‘Despite an improving sales market forecasted, we fully expect this trend in increased investment volumes to continue into 2024 and beyond, thanks to a growing weight of capital attract to the sector by its strong fundamentals. In addition, developers and housebuilders are becoming more comfortable with the concept of incorporating single family housing into their wider sales and marketing strategies, which is helping to accelerate delivery of much needed housing.’
Whilst speaking with investors who are currently interested in SFH, Knight Frank, a global real estate consultancy and estate agency, discovered that together they plan to commit £17bn of capital to the SFH sector within the next five years.
Against this backdrop, the consultancy have said that if patterns continue, SFH rental units in the UK will almost triple from the current level of 26,575 homes.
Oliver Knight, Head of Residential Development Research at Knight Frank, added: ‘Our research provides clear evidence of the opportunities for single family rental housing to play a key role in addressing the UK’s housing shortage, particularly for families. The geographic distribution of the sector is broadening as institutional investors increasingly eye suburban markets across regions like the East of England and West Midlands to deploy capital at scale.’
Image: Nathan Dumlao
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Homes England have been warned they must strengthen relationships with councils
An independent review has recommended that funding methods for Homes England should be rethought and they should grow closer with local authorities.
Since the cost-of-living began squeezing budgets, various government organisations, including Homes England – the government’s housing and regeneration agency that was founded in 2008 – have come under fire. However, findings from a new review, which is part of the Cabinet Office’s public bodies review programme, have claimed that the government organisation should have ‘closer’ relationships with councils to ensure projects that require urgent attention are prioritised.
Tony Poulter, a non-executive director for the Department of Transport, who led the review, told the Local Government Chronicle that the Department for Levelling Up, Housing & Communities (DLUHC) must ‘determine the balance’ between Homes England’s role in regeneration and housing delivery.
Tony said: ‘If you want to do more regeneration and placemaking, in the short term, it might mean slower housing delivery.’
As part of the government’s levelling up agenda, Homes England has a series of priority places for regeneration work, however, to ensure schemes run smoothly, Tony claims that the ‘DLUHC needs to coordinate better with Homes England to make sure that they aren’t tripping up over each other.’
Mr Poulter referenced the incident that occurred in 2023, when Homes England faced backlash after they were forced to return funding to the Treasury.
Against this backdrop, the review, of which the findings were published earlier in the week, also proposed changing Homes England’s funding arrangements so it can ‘commit to large, long-term schemes’.
Likewise, authorities have suggested the government allow Homes England to ‘take more risks at some points in the economic cycle [which could increase] additionality and impact.’
In response to the review, Peter Denton, chair of Homes England, said: ‘Much of this work is already happening. Other recommendations will require changes in partnership with the DLUHC and Treasury, but if progressed could be transformational in how we deliver new homes and create thriving places.
‘While there is much to celebrate, we are steadfast in our resolve to always to improve, ensuring that we are effective and efficient in driving forward the country’s housing and regeneration ambitions.’
In addition, Michael Gove, remarked: ‘[The] independent report shows Homes England is the right vehicle to deliver more affordable homes and support our plans to regenerate towns and cities across the country.’
Image: Ming Jun Tan
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