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Updated: 44 min 44 sec ago

What should be the approach to UK placemaking? Patience could be prosperous

7 March, 2024 - 09:37

Mark Gauguier, James Bromley, and Amy Penrose all work at Farrer & Co. They understand how industry experts can address issues surround planning and tax systems – two major factors affecting placemaking in the UK. 

As we lurch inexorably towards the General Election (and London Mayoral election), issues surrounding planning and tax reform and the need for new homes are set to be key themes of 2024.

Against this backdrop, and using research conducted as part of ADAM Architecture and Farrer & Co’s Placemaking Two Report (2024), we briefly explore some of the current limitations of the planning and tax systems and the case made by the report for a holistic and patient approach to placemaking.

What is happening now and what are the barriers to change?

The problem is put succinctly by Lord Taylor of Goss Moor – ‘Housebuilders manufacture houses not places.’ This is not entirely surprising, however, as the current planning and tax regimes have helped shape a market that is skewed towards short-term development that maximises financial value at the point houses are sold, with little consideration to the long-term value of well-designed communities. The report suggests that various elements play key roles in thwarting the delivery of development driven by placemaking and stewardship.

Land allocation process: starting at the very beginning, the current planning system is built on representations from landowners and developers which can result in a piecemeal approach to bringing development forward. This is not aided by the abstract nature of local plans, which can discourage community engagement.

Rigid master planning: organic, flexible development is challenged by masterplans that are fixed years, and sometimes decades, before construction. This is particularly important when it comes to addressing the requirements of the community and harnessing advancements in technology: for example, opportunities for onsite energy production or making provision for electric vehicles.

Best value?: landowners who need to demonstrate ‘best value’ to their trustees and beneficiaries can be forced to sell their assets before building commences and upfront infrastructure or survey costs are due, instead of staying involved long-term. This may scratch an immediate itch, and may sometimes be commercially unavoidable, but the well advised landowner will understand that best value can take many forms.

Quick returns: the current market best suits larger (invariably national) housebuilders whose model is to build houses quickly and move on to the next site with little consideration as to how the development will age. Upfront acquisition and infrastructure costs can force the need for quick returns on investments. Quick returns often come at the expense of whole-place design, with focus instead on delivering more or larger (ie more profitable) houses in preference to green space or bungalows.

Complex tax rules: the tax system poses significant challenges for landowners. Without careful consideration, landowners who choose a patient approach may unintentionally incur upfront, unfunded tax charges. Additionally, their ongoing participation in certain schemes could lead to higher tax liabilities in the long term. Charities, in particular, may struggle to support initiatives aligned with their charitable goals and community enhancement due to the tax implications.

Prohibits landowner collaboration: the current tax framework makes it extremely difficult for diverse groups of landowners to unite in a single, long-lasting venture in the way necessary to successfully deliver high-quality legacy projects. Patient schemes, which typically have placemaking at their core, are often characterised by the close involvement of landowners already invested in their local communities, seeking to generate a positive legacy as well as financial returns. Landowners, such as charities, local individuals, trusts and private companies, are more likely to seek this patient approach to development. In making landowner collaboration relatively punitive, however, the current tax landscape tends to work against these schemes.

An opportunity for change?

Since Covid-19, people have led increasingly localised lives due to the expectation of many to work at least a portion of the week from home. As a result, we now demand that our neighbourhoods are walkable, supportive of local businesses and incorporate green space.

Schemes highlighted in the Placemaking One Report (2020), such as Nansledan in Cornwall and Derwenthorpe in Yorkshire, demonstrate what is possible when development is focused on building communities, not just houses. The Placemaking Two Report (2024) builds on these findings and explores potential changes, including to the planning and tax regimes, to allow greater opportunities for more holistic approaches to development.

Local Development Orders (LDOs): LDOs delivered by partnerships between local authorities and developers could be utilised to ease the way for uncontentious development that would promote economic, environmental and social gains. LDOs are effective mechanisms to de-risk long-term developments for investors and developers because the risk of not achieving permission is much lower. At the same time, the development’s ‘vision’ is relatively insulated from political changes and promotes a more planned reality. In contrast to the current piecemeal approach which can easily lack bigger picture thinking, LDOs can focus on delivering a comprehensive plan for infrastructure and community amenity to achieve the right development in the right place.

Public-private joint ventures (JV Partnerships): subject to complying with public procurement rules, JV Partnerships could assist in re-shaping traditional land acquisition models with the aim of altering potentially prohibitive cash flow positions. The effect of this would render the market more accessible to a wider range of developers. Practically, JV Partnerships could explore local authorities offering land to developers for a share of the development profits, in return for delivering key policy aspirations, such as schools or infrastructure initiatives.

A fresh approach to taxation: implementing a new tax framework that enables stakeholders to collaborate in a unified entity, without the burden of extra tax expenses, would facilitate larger scale community developments. Tailoring tax rules to ease the financial burden of long-term local stewardship of communal assets, particularly for charities, would further mitigate the existing tax risks associated with longer-term community engagement.

Design control: it is evident that community engagement should extend beyond the construction phase to protect, manage and regulate development. Thoughtfully designed and well-monitored legal frameworks for design control and estate management play a crucial role in sustaining the success of longstanding initiatives and endorsing the fundamental principles of landowner stewardship.

Supporting local businesses: local authorities may wish to consider offering sustainable or de-risked rental structures to businesses that take up premises early in developments. Diverse mixes of local independent businesses have been shown to result in long-term community benefits – including house price growth, local job creation and creating a distinctive sense of place.

So often, developments are designed as sleepy mono-use commuter towns to be returned to after a day’s work in the city, not as desirable places in their own right. As the report highlights, if we are serious about creating sustainable and vibrant places, we need to focus on promoting a more patient approach to placemaking – and on developing the tools required to achieve that.

Images: Tye Doring and Etienne Girardet

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Opinion: Labour won’t deliver 300,000 new homes

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Spring Budget: Housing targets to be treat with a ‘healthy dose of scepticism’

6 March, 2024 - 16:49

Although Jeremy Hunt successfully delivered the Spring Budget, it looks as though the government will not be delivering on their promise to supply more affordable homes.

At 12.30pm Chancellor Jeremy Hunt took to the stands in the House of Commons to deliver the 2024 Spring Budget. As part of the announcement, Mr Hunt unveiled a series of measures in a bid to help the economy.   

Arguably, one of the best decisions to come from the speech was the announcement that, from April, the National Insurance contribution rate will be cut from 10% to 8%, which comes on top of a 2p cut in the autumn statement which was delivered in November 2023. It is estimated that this cut would be worth around £450 a year for someone on a £35,000 full-time salary.

Against this backdrop, Mr Hunt also confirmed plans to extend the Household Support Fund for six months. The fund is distributed by councils across England to directly help those who are struggling with inflation. As well as this, the government plan on freezing alcohol and fuel duty in a bid to help businesses and people who currently can’t afford to drive to work.

However, despite these measures being designed to help people in need, when examined a lot more closely, it seems people will be no better off than before the Budget was announced. One particular area that still requires severe improvement is property.

Whilst delivering the Budget, Mr Hunt announced that the government will reduce the higher rate of property capital gains tax from 28% to 24% and that the government will abolish stamp duty relief for people buying more than one dwellings.  

Moreover, Mr Hunt also confirmed plans to scrap the furnished holiday lets regime. The imitative gives tax relief on properties being rented out to holidaymakers and makes renting out to them more profitable than to long-term tenants. The move is expected to raise £300m a year for the Treasury.

It’s safe to say that these decisions were not met with a positive reception from experts involved within the housing sector.

Chief executive of Bradford-based Manningham Housing Association (MHA), Lee Bloomfield, said: ‘It is disappointing but not surprising that a commitment to build many more urgently needed affordable homes was absent from the Chancellor’s remarks.

‘Alongside the six-month extension to the Household Support Fund, the well-trailed cut to national insurance was welcome but it seems that will be paid for by phantom efficiency savings which, if they do not materialise, raise the prospect of further deep cuts to public services which are already in crisis.’

‘Those on middle and higher incomes will benefit most from the key Budget measures, particularly with the personal tax threshold freeze remaining in place,’ Lee added. ‘Housing association tenants were far from the Chancellor’s thoughts.’

Echoing a similar tone, Anthony Payne, president of ADEPT, claimed that the government’s budget seemed to be passing more financial burdens onto local authorities, so it no longer troubles them.

Anthony said: ‘While we welcome any new investment in our places, there is no escaping the fact that the place-based services ADEPT members are responsible for delivering are struggling. A budget focused on cutting tax and a patchwork of investment will do nothing to help local authorities deliver the essential services people rely on every day. Councils across the country are making extremely difficult decisions based on painful choices that will impact everyone but fall hardest on the most vulnerable in our communities.’

Commenting specifically on the decisions that directly affect the property sector, Oli Sherlock, managing director of insurance at Goodlord, said: ‘As predicted, this Budget didn’t deliver much in the way of housing reform. The most surprising announcement, and one that wasn’t leaked beforehand, is that the higher rate of property Capital Gains Tax will reduce from 28% to 24%. This will be welcome news for landlords, but could have the adverse effect of encouraging those on the fence to sell-up. 

‘Alongside that announcement, the Chancellor confirmed the rationalisation of tax rules by abolishing the furnished holiday lettings tax regime. This is a sensible loophole to close and may help level up the buy-to-let sector and, hopefully, unlock more full time tenancy stock in tourist hubs, major cities, and coastal communities. For more meaningful changes, the sector will have to continue waiting for the Renters (Reform) Bill to finally become law.’

Likewise, Lauren Hughes, head of customer success at Vouch, claimed that the announcements delivered in the Budget delivered little surprise and that plans to deliver more affordable homes are way off in the future.

She said: ‘’Of the many things the sector was calling for pre-Budget, very few materialised today, although there were a few surprises. Announcements included new tax rules for short-term lets, an unexpected reduction in capital gains tax, and the abolition of multiple dwellings relief (MDR). Together, they present a mixed bag for landlords and agents, and they will certainly be felt by certain sections of the industry.

‘However, despite promises for more house building, this is something that’s been heard before and is yet to materialise. It would therefore be understandable for the sector to treat the ambition to build a million homes in this Parliament with a healthy dose of scepticism.’

Image: Shutterstock

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Spring Budget 2024: Experts predictions for the housing sector

Built environment institutes renew joint pledge to tackle global instability

6 March, 2024 - 14:33

Architects, planners, structural engineers and landscape practitioners have renewed their joint pledge to collaborate on tackling built environment issues in cities. 

According to new research, 70% of the world’s population are predicated to live in cities by 2050. As a result, members of the UK Built Environment Advisory Group (UKBEAG), which was first launched in 2016 and is comprised of the Royal Institute of British Architects (RIBA), the Royal Town Planning Institute (RTPI), the Institution of Structural Engineers (IStructE) and Landscape Institute (LI), have committed to work together for at least another five years.

UKBEAG have claimed that they have agreed to continue to make their joint expertise accessible to the governments, humanitarian agencies, and development partners at the sharp end of delivering sustainable urbanisation.

Urbanisation is the increase in the proportion of people living in towns and cities. When properly managed, urbanisation can reduce poverty and inequality by improving employment opportunities and quality of life, including three better education and health.

However, as more people are making the move to towns and cities across the globe, it is becoming apparent that places are lacking the critical built environment capacity and expertise to ensure this huge growth is sustainable.

For example, in Uganda in 2018, a survey recorded that there were just five architects and 50 engineers per every one million living in the country (compared to more than 600 of each for every one million in the UK) while urbanising at a rate of 6% – more than six times the rate of the UK.

Commenting on the news, RIBA Chief Executive Dr Valerie Vaughan-Dick MBE said: ‘The built environment is a huge carbon emitter, so if we are to protect the long-term future of our planet, urbanisation must be sustainable. Architects and other built environment professionals must work together to play an essential role in achieving this.

‘As we face a global environmental crisis, RIBA must do what it can to support sustainable urbanisation by sharing knowledge, technical expertise and influence wherever it is needed, just as we too learn from others across the world. This renewed pledge demonstrates great ambition, and I look forward to working with our partner institutes to lead by example, combining our strengths to make a real difference.’

In addition, IStrutE Head of Climate Action Will Arnold said: ‘With most of the world still requiring more housing, buildings and infrastructure, the opportunities to head towards a regenerative built environment is huge. But to do so requires huge collaboration, systems thinking, and the ambition to create urban centres that are wholly positive for all living things. The renewed UKBEAG partnership will enable critical links to be formed between UK engineers, architects, planners with built environment professionals across the world, for mutual benefit of all parties.’

Image: mostafa meraji

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WATCH: Films share first-hand experiences of living in unhealthy conditions

6 March, 2024 - 08:00

Four families explain the destructive effects of awful living conditions on their physical and mental health to help change the UK’s urban planning policy practice.

TRUUD, a research programme that aims to reduce non-communicable disease and health inequalities associated with the quality of urban planning and development, have commissioned four new films to showcase the effects of poor planning.

The films detail first-hand experiences of overcrowding, lack of green space, damp, noisy or polluted environments on respiratory illnesses, mental health, child behaviour and quality of life. These issues are currently being heavily debated by the housing sector and central government, especially the problem of damp in people’s homes.

In December 2021, two-year-old Awaab Ishak tragically lost his life as a result of being exposed to excessive amounts of black mould in his home in Rochdale. Ever since this disaster, the Secretary of State for Levelling Up, Housing and Communities, have proposed Awaab’s Law – a legislation that is currently being debated in Parliament which will hopefully set out new legal duties for landlords to address hazards such as damp and mould in social homes within a fixed time period.

Against this backdrop, the new films will be used in discussions with the government and the commercial development industry as well as to raise awareness of the links between the built environment and health.

Using evidence gathered through research from TRUUD, a programme based at the University of Bristol, and its HAUS economic modelling tool, the films feature:

  • Samuel and his two young sons in a 15th floor cramped one-bedroom flat. The family sleep in the same bed and Samuel struggles to find places for his sons to play. The boys feel tired at primary school and can have problems with their behaviour. Samuel has taken medicine for his depression
  • Kadra and Wendy raising their children and managing their lives in damp homes. Kadra and her young sons all experience coughing and chest problems and her youngest is scared to use the mouldy bathroom so has reverted to using nappies. Wendy lives with her 18-year-old daughter and spends most of her time at work to avoid her mouldy house. Her mental health is suffering and she believes her osteo-arthritis is trigged by the damp
  • Shakar and his family are living with traffic noise and air pollution. Shakar, his wife and three sons all suffer from a lack of sleep. Shakar has been on medication for stress and anxiety and his wife suffers from severe asthma as well as their children

Dr Jo White at UWE Bristol led the commissioning of the films. She said: ‘Our films show the real and varied health impacts on families of living in unhealthy places. They provide powerful insight into the links between urban planning and development decisions and health.

‘Using lived experience evidence is an important part of our work on TRUUD and I’d like to thank all our film participants for telling their stories. They did so, hoping this will promote change in how urban spaces are designed. The films will be used as part of our TRUUD interventions with government and industry.’

The films are all available on the TRUUD website and were made by Drummer TV.

Dr Rosalie Callway, Healthy Homes campaign manager at the Town and Country Planning Association, added: ‘It is incredibly shocking to witness the dire housing conditions that children, families and individuals are living in around the country – conditions that make people unwell. Such homes harm childhood development by preventing children from being able to play, study or even sleep properly. It also makes parents unwell, so they are less able to support their families or work. This situation is entirely preventable.

‘The government says current regulations and policies are good enough. But that clearly isn’t the case. We are calling on the government to create a national healthy homes strategy and plan, in partnership with developers, landlords, housing providers and community actors.’

‘We urgently need more homes, but we must ensure they are built in the right way and in the right places,’ Dr Callway said. ‘This means homes that are not just ‘decent’ but also resilient, inclusive, genuinely affordable, and provide a safe haven that allows people to thrive, as a connected part of their communities.’

Image: Jon Tyson

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Liverpool welcomes multi-million-pound investment

5 March, 2024 - 11:00

The local authority have expressed their gratitude for the £31m boost for it’s life sciences hub and for one of the city’s well-loved markets.

On 1st March 2024, Michael Gove, Secretary of State for Levelling Up, Housing and Communities, announced at the Convention of The North conference that Liverpool would be receiving a £31m investment package.

The majority of the funding will be spent on the development at Paddington Village in the heart of the city’s 450-acre Knowledge Quarter Innovation District, with the minister stating the government’s support for an ‘arc of opportunity’ across the city to Bramley Moore Dock.

Zooming in on the projects happening in Paddington Village, the funding will used as follows:

  • Up to £13m spent on delivering HEMISPHERE One – a new eight-storey Grade A office which will include up to five floors of new labs and promote net zero principals in Paddington Village
  • Up to £13m to acquire sites (including Smithdown Lane Police Station) and remediate and masterplan phase two of Paddington Village, otherwise known as Paddington South
  • Up to £5m to enable an upgrade for Great Homer Street Market in Everton, which will allow for its expansion to attract more traders

HEMOSPHERE One is a £60m scheme to be delivered by Sciontec – a partnership between the council and the University of Liverpool, Liverpool John Moores University and Bruntwood SciTech.

The 115,000 sq ft scheme, which is set to be complete by early 2027, will include 80,000 sq ft of lab space in the building’s top five floors, in line with the Liverpool City Region’s Health and Life Sciences Investment Zone vision.

Secretary of State for DLUHC, Michael Gove, MP, said: ‘We know there is immense potential for urban regeneration in Liverpool and the wider city region.

‘That is why the vision set out in the Liverpool Strategic Futures Advisory Panel report is so important. And that’s why we are backing it today it with £31m of new money for regeneration projects, which trace an arc of opportunity from the Knowledge Quarter to Bramley Moore Docks on the waterfront.’

Liverpool City Council set out its investment proposal to the Department of Levelling up, Housing and Communities late last year and this funding announcement follows the Interim Report of the Liverpool Strategic Futures Panel, chaired by Metro Mayor Steve Rotheram.

Council Leader, Cllr Liam Robinson, said: ‘We are delighted that the Government has endorsed our plans and is willing to invest in Paddington Village in our Knowledge Quarter. This investment will help to accelerate the city’s future as a world-leading science and innovation hub.’

‘This funding is also a huge vote of confidence in our vision to be one of Europe’s leading centres for research and development in the life-sciences,’ Cllr Robinson said. ‘HEMISPHERE One is going to be a fantastic asset to the city, creating much-needed lab-based jobs for decades to come. The other tranche of funding will ensure we can develop the second phase of Paddington Village and enhance the city’s overall appeal to attract further investment and more jobs.’

Cllr Robinson added: ‘In addition, the funding for Great Homer Street Market is equally welcome as this will ensure we can grow this vital community asset in North Liverpool.’

Images: Liverpool City Council and Laurie Byrne

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Opinion: Labour won’t Deliver 300,000 Homes

5 March, 2024 - 09:00

Following the debate about how many houses are needed in the UK, industry-expert Peter Brown directs our attention to a topic this argument could be overshadowing.

The debate around how many new homes are needed misjudges the big issue – a new Labour government will struggle to increase housing completions for sale and for rent.

Public services are failing, satisfaction rates are at record lows and waiting lists are soaring. Focusing on hospitals, schools and the courts, the IPPR claimed that public services won’t return to acceptable levels of quality until the 2030s and that the post-election government will inherit one of the most challenging contexts of any government since the Second World War.

In October, at the Labour Party conference Keir Starmer’s pledged 1.5 million homes over the next parliament and conference was told that a Labour government will “deliver the biggest boost in affordable and social housing for a generation”. Yet despite a chronic housing shortage, a new Labour government will struggle to deliver a surge in new social housing. 8 months after Michael Gove failed to allocate housing money, handing back £1.9bn to the Treasury, the situation has deteriorated. In November, the Regulator of Social Housing listed a potent cocktail of obstacles. Persistently high inflation, higher cost of borrowing, challenges accessing skilled labour, and a declining housing market all still playing out. On top of that are rising costs of building materials, cuts in welfare spending, squeezed development funding, and the long shadow of building safety scandals. With insolvency of construction companies 34% higher than pre-pandemic 2019, Labour needs to know that simply increasing the funding for new building won’t work; a new approach will be needed. And after 13 years of adverse economic conditions, the social housing sector remains increasingly hobbled by a complex web of challenges that will continue to dampen ambitions.

We need to change the conversation. Setting unachievable construction targets won’t solve the problem and simply sets Labour up to fail. Headlining 1.5 million homes and the biggest boost in affordable and social housing for a generation

are the wrong goals. Put simply, headlining an increase in supply is an output rather than an outcome. It fails to give people confidence that their housing conditions will improve. And simply building more housing is the Tory playbook of unbridled growth to feed the Conservative Party property donors.

It will take time to rebuild public services. The conversation needs to be reframed around quality and access. No-one should live in a home that is unsafe, mouldy or damp. Whether you rent or buy, everyone should be able to access decent housing. Creating the right conversations now, will acknowledge the recent decimation of our public services and set achievable aspirations for the future.

Image: Christopher Burns

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Ofsted confirms plans for inspecting supported accommodation providers

5 March, 2024 - 08:00

Ofsted has published guidance for inspecting supported accommodation for looked after children and care leavers aged 16-17.

The guidance follows extensive consultation with providers, children, care leavers and the wider social care sector.

These inspections will start in September 2024 rather than April as originally planned, to give providers more time to digest the guidance while Ofsted prioritises dealing with the large volume of registration applications, including many from providers that are already accommodating children and care leavers.

The consultation ran from 10th July to 8th September 2023 and received 280 responses, including 58 responses to a survey of young people. Overall there was support for Ofsted’s original proposals but, following consideration of the detailed responses, some changes have been made.

Ofsted has confirmed the three-outcomes model for the first round of supported accommodation inspections. However, the second outcome summary has been adjusted to ensure the quality of providers is captured accurately.

The three summary outcomes are:

  • Consistently strong service delivery leads to typically positive experiences and progress for children. Where improvements are needed, leaders and managers take timely and effective action. The next inspection will be within approximately three years
  • Inconsistent quality of service delivery adversely affects some children’s experiences, and this may limit their progress. Leaders and managers must make improvements. The next inspection will be within approximately 18 months
  • Serious or widespread weaknesses lead to significant concerns about the experiences and progress of children. Leaders and managers must take urgent action to address failings. The next inspection will be within approximately six months

Ofsted has confirmed that providers will be given two working days’ notice before inspectors arrive on site. However, the inspection will start as soon as it is announced, meaning any information gathered in the two days before inspectors arrive – including conversations with young people and professionals – will form part of the inspection evidence.

There was strong agreement about the features of effective supported accommodation, and feedback from respondents to the consultation has informed the final inspection guidance.

Sir Martyn Oliver, His Majesty’s Chief Inspector, said: ‘For young people who are leaving or preparing to leave care, supported accommodation can be an important part of their transition to independence.

‘Where providers are offering young people high-quality and nurturing support, it can be transformative, but we know that too much provision isn’t good enough. I’m really pleased that for the first time, Ofsted will be able to inspect supported accommodation in the interests of the young people who need it.’

Image: Sigmund

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Key workers locked out of renting in London – research

4 March, 2024 - 14:42

Renting in London is impossible for a range of key workers, with the median private rent in Inner London worth 106% of a teaching assistant’s salary, according to new research.

Analysis of 15 key and essential worker roles by campaign group Generation Rent shows that not a single borough of Inner London is affordable for roles across education, healthcare, social care, construction, retail, commerce, and hospitality.

Generation Rent is calling on candidates for the London mayoralty to demand powers to control rents and commit to building many more social homes in the capital if they win in May.

A home is considered affordable if it costs 30 percent or less of a person’s income. The average proportion of incomes required to cover the market-rate rent for the median one-bedroom home is more than 100% of teaching assistants’ incomes, and exactly 100 percent of kitchen assistants’ incomes.

Not a single one of Greater London’s 32 boroughs is affordable for people working in jobs such as bus drivers, care workers, cleaners, community nurses, hairdressers, painters and decorators, sales assistants and teaching assistants.

Teaching assistants experienced the most affordability issues of the roles analysed in this research – whose most affordable London borough is Sutton (62% of income spent on median rents) and least affordable is Westminster, with almost one and a half (145%) times their income required to cover average rents.

For the five lowest-paid jobs, there are four boroughs – the City of London, Islington, Kensington and Chelsea, and Westminster – where average rent costs more than the entire salary.

Ben Twomey, chief executive of Generation Rent, said: ‘Just a few years ago we were clapping on our doorsteps every week for key workers. Now they risk being driven out of our city because of soaring rents. For communities to survive, local people must be able to stay healthy, receive an education, find a safe home to live in and purchase basic goods. But, if those working in vital jobs cannot afford to live in the area, everyone loses out.

‘The current cost of renting crisis is devastating London’s communities. It is vital that England’s metro mayors have the power to slam the brakes on local rents and give our key workers the breathing space they need to live and work in their community. It is also vital that the mayor and the government build more affordable homes in the capital and increase how much social housing is available.’

Image: Giammarco Boscaro

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Spring Budget 2024: Experts predictions for the housing sector

4 March, 2024 - 11:50

On 6th March 2024 chancellor Jeremy Hunt will deliver the government’s Spring Budget. Here’s what housing experts think this will mean for their sector.

The Spring Budget, or just the Budget, is when the government updates the public on the state of the UK economy, shares projections made by the Office for Budget Responsibility (OBR) and announces its fiscal plans for the year ahead. On Wednesday, Mr Hunt is expected to announce this year’s plan, just four months after he delivered the Autumn Statement.

However, as the UK has been involved in a financial crisis since the cost-of-living began to rise in 2021, the public aren’t hopeful that his statement will contain good news. Speaking on Sunday with British journalist Laura Kuenssberg, Mr Hunt said he wanted to move Britain towards becoming a lower-tax economy, but that he would only be able to do so ‘as and when we can afford it.’

Pulling the plug on any kind of hopes for a huge package of giveaways, Mr Hunt expressed that the most ‘unconservative’ thing he could do would be to announce tax cuts funded by higher borrowing.

Mr Hunt said: ‘This will be a prudent and responsible budget for long-term growth.’

With this message in mind, various housing experts have collected their thoughts on what the budget may have in-store for their industry.

Daniel Austin, CEO and co-founder at ASK Partners, said: ‘With housing set to be a battleground point in this year’s election, it is expected to feature heavily in Wednesday’s Budget. As the sector moves to the top of the agenda for all parties, we hope to see a long-term plan for new homes, including social housing, however, we expect we will see more short-term fixes. Stimulus will be become but can create unnecessary froth.’

‘Voters and developers alike will be keenly listening out for housing policy in the Budget. For voters, a stamp duty holiday or reprieve may be a welcome sign,’ Daniel said. ‘For developers, eased planning regulations for brownfield sites and conversions will be popular.’

Daniel added: ‘However, the government will be faced with a challenge – striking a balance between trying to increase housing supply and therefore affordability by supporting developers and private landlords but appealing to voters who do not want to see greenfield development. The planning system remains hotly political and as a result, landlords and developers are unlikely to see much in their favour.’

In addition, Karen Charles, executive director of Boyer, echoed similar views. She said: ‘The list of what the Chancellor could introduce to bring forward more new homes is considerable. 

‘From my point of view, we need to see initiatives to support the delivery of homes in sustainable communities with high quality placemaking and healthy neighbourhoods in settlements where people want to live such as large villages and towns, alongside high-density housing on urban brownfield sites which is the government’s preference. There is a need for balance and the delivery of a variety of homes in a mix of locations to meet different housing needs.’

The focus on delivering more homes comes from the government’s frequent failure to meet housebuilding targets. According to their own statistics, the government failed to meet the goal of delivering 300,000 new homes, despite an additional 234,000 homes being added to England’s housing stock in 2022-23. In 2022, government figures show 212,570 new builds were delivered alongside 22,160 properties which were changed from non-domestic to residential and 4,500 houses which were converted to flats.

Another problem that is currently plaguing the housing sector is how much it costs to buy your first property. Tim Foreman, managing director of land and new homes at Leaders Romans Group, claims this should be a government priority.

Time said: ‘Since the government ended the Help to Buy scheme it has become increasingly difficult for first time buyers to get on the housing ladder, with many having to find huge sums of money to use as their deposit. I would like to see the government turn its attention to first time buyers, appreciating the difficulties that they face and enabling them to make the very important first step on to the ladder – and in doing so, getting the market moving for thousands of others.’

Moreover, speaking about property costs as a whole, Sarah Thompson, managing director at Mortgage Scout, said: ‘All that we in the mortgage industry ask of the chancellor is that he concentrates on lowering interest rates.’

‘This means getting inflation under control – admittedly no mean feat – so that the Bank of England can take a majority decision to reduce interest rates,’ Sarah said. ‘In the past few months members of the Monetary Policy Committee have expressed a desire to do so; we’re halfway there.’

She added: ‘Once interest rates begin to come down, the housing market will react quickly. Addressing both the cost-of-living crisis and the housing crisis, this will result in a win-win for both politicians and the electorate.’

Images: Ant Clausen and Melinda Nagy

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Homeless children in temporary accommodation hits new record

4 March, 2024 - 09:19

Rough sleeping has soared by 27% in a year while the number of homeless children in temporary accommodation has hit another record high, according to government figures.

The latest snapshot figures on the number of people sleeping rough in England in 2023 revealed that 3,898 people were recorded sleeping rough on a given night, a 27% rise since 2022.

The number of people sleeping rough in England has more than doubled since 2010 when the data started being collected – up 120%.

Housing charity Shelter said these annual figures were likely to be an underestimate, as people who sleep in less visible locations can be missed.

Separately, new statutory homelessness figures show homelessness reaching new highs in England between July and September 2023:

  • 109,000 households are homeless in temporary accommodation – another record high figure and up 10% in a year
  • There are 142,490 children who are homeless – another record and up 16,960 (14%) in a year
  • In total 78,460 households in England faced homelessness between July and September 2023

With a general election on the horizon, Shelter called on all political parties to commit to ending the housing emergency by building 90,000 social homes a year with rents tied to local incomes.

A report published by Shelter and the National Housing Federation (NHF) said that building 90,000 social homes would not only pay for itself in terms of economic and social benefits within three years, but would add more than £50bn to the economy in the long term.

Polly Neate, chief executive of Shelter, said: ‘[These] figures are further proof that the government cannot continue to turn a blind eye to the housing emergency. Far from ending rough sleeping, through its own ineffectiveness the government has allowed it to more than double on their watch, while the number of children homeless in temporary accommodation hits yet another shameful high.

‘We haven’t built enough social homes in decades, and with rents at a record high, thousands of people are being forced to spend their nights freezing on street corners. Meanwhile families are being pushed into grim hostels and B&Bs miles away from their support networks and where children have to share beds.

‘Ignoring a crisis of this magnitude cannot continue. Everyone at risk of street homelessness should be provided with suitable emergency accommodation. But the only lasting solution is for the government and all political parties to commit to build genuinely affordable and good quality social homes – we need 90,000 a year.’

Image: Jon Tyson

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Bradford Housing Association have appointed a new vice chair

1 March, 2024 - 16:12

Former chief executive of Arawak Walton Housing Association, Cym D’Souza, has now joined Manningham Housing Association’s board.

Cym D’Souza was chief executive of Arawak Walton Housing Association for almost 25 years before she stepped down last autumn. Prior to this, she was chair at BME National, the umbrella organisation for black and minority ethnic (BME) housing associations, making her a well-known figure in this sector.

In addition, she is a qualified chartered accountant and has been a member of numerous boards in the commercial and housing sectors. She was recently appointed vice chair of Church Housing Association, which the Church of England announced it would be forming in May 2022 in response to the housing crisis.

Founded in 1986, Manningham Housing Association (MHA) manages over 1,400 homes for more than 6,000 residents in Bradford and Keighley.

The organisation was discovered following a piece of research on the housing needs of Black and Asian communities in Bradford, which found that the needs of the South Asian community were not being addressed.

It claims to be the first housing association in the country to receive official accreditation for its work on promoting equality, diversity, and inclusion.

D’Souza said: ‘I am excited to join the MHA Board. It has established a well-earned reputation as one of the leading BME housing associations in the country, which not only provides high-quality homes for residents but strives to improve the life experiences of the wider communities which surround them.

‘I know that exciting plans are in place to build on the progress MHA has made in recent years. I look forward to playing my part in delivering them.’

Image: Ian Schneider and Cym D’Souza 

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Demands for heat pumps have surged by over 30%

1 March, 2024 - 11:37

New figures show applications for the government heat pump grants have increased by 39% compared to this time last year.

In September 2023, Prime Minister Rishi Sunak announced plans to increase the heat pump grant which was originally introduced in 2021. When the grant was initially announced, the government revealed that the treasury would be providing £450m to the public to encourage households to install heat pumps.

However, since the Prime Minister increased the grant to £7,500 for each installation of an air source or ground/water source heat pump, applications have gone through the roof.

New figures, which were unveiled yesterday – 29th February 2024 – show there were over 2,000 applications for heat pumps in January 2024 – only exceeded by October and November last year.

Heat pumps are an energy efficient, low carbon way of heating homes. They work by moving heat from a cool space to a warm space by transferring thermal energy using a refrigeration cycle. In addition to being better for the environment, research suggests they also help homeowners save money on their heating bills. According to findings from Air Source Heat Pumps London, a standard heat pump can save the average three-bedroom household in the UK up to £1500.

The news of applications increasing follows recent government figures showing the UK is the first major economy to halve its emissions – having cut them by 50% between 1990 and 2022, while also growing the economy by 79%.

Claire Coutinho, energy security secretary, said: ‘I don’t want families to have to choose between cutting costs and cutting emissions. I want families to feel supported, not forced, to make changes that are right for them.

‘After we made out heat pump scheme one of the most generous in Europe, applications have soared by 40% year on year – showing our approach if the right one.’

The figures also revealed the average monthly number of applications from November 2023 to January 2024, the months after the grant increase, has been 39% higher than the monthly average before the uplift.

Up to the end of January, the scheme has now received 33,424 applications in total and has issued more than £133m in vouchers to customers.

‘It’s great to see interest in the Boiler Upgrade Scheme increasing, supporting the installation of over 20,200 heat pumps to date across England and Wales,’ said Charlotte Lee, chief executive of the Heat Pump Association. ‘The uplift in the grant value for air source and ground source heat pumps in October 2023 to £7,500 has been well received by both the sector and consumers and we hope this increasing interest will be a trend which continues forward as we move to decarbonise home heating in line with the government’s legally binding net zero targets.’

Image: Shutterstock

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Major housebuilders to be investigated over sharing price info

1 March, 2024 - 09:51

The UK competition watchdog has opened an investigation into eight housebuilders after it discovered they may be sharing commercially sensitive information.

In most instances sharing is sharing, however this current situation is an exception. The Competition and Markets Authority (CMA) launched the investigation against Barratt, Bellway, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry, after it found evidence that suggested they were sharing non-public information, including sales princes and details of incentives for buyers.

The decision to launch the investigation came after a year-long market report by the watchdog into the barriers leading to the undersupply of new homes in the housebuilding sector.

Following this, the report said it had ‘fundamental concerns’ over the housebuilding market, pointing to the complex planning system and the limitations of speculative private development as the key reasons for not enough homes being built.

In addition, the report said various local planning departments were under-resourced or not have clear targets to deliver the number of homes needed in specific areas.

The CMA outlined profits of the 11 largest housebuilders were ‘generally higher than we would expect for a well-functioning market.’ However, it also warned that any measures introduced to tackle profitability in the sector would reduce the number of homes being built and exacerbate supply problems.

Commenting on the news, the Department for Levelling Up, Housing and Communities said: ‘We welcome the CMA’s final report following its full market study into housebuilding and the report will now be carefully considered.

‘Despite the economic challenges we remain on track to build one million homes this parliament, backed by £10bn investment in housing supply, while our long-term plan for housing will allow us to go even further to build the homes that local communities want and need.’

Moreover, a Bellway spokesperson – one of the organisations currently under fire – said: ‘We are reviewing the CMA’s report. Bellway has engaged and cooperated fully with the CMA throughout its market study – and will continue to do so.

‘Bellway is committed to exceptional customer care. We remain focused on the delivery of high-quality new homes that meet local demand and enhance the communities we build in as we work to increase the supply of UK housing.’

Image: Guilherme Cunha

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£90m monthly spending on homelessness accommodation ‘threatens to bankrupt boroughs’

29 February, 2024 - 16:35

New research from London Councils has found that boroughs’ monthly spending on temporary accommodation for homeless households increased by almost 40% in 2023.

Since the start of the cost-of-living crisis, homelessness rates have skyrocketed across the capital city. As a result of a shortage of affordable accommodation, severe strain has been cast on boroughs’ budgets, with London Councils labelling this a ‘critical danger’ to their financial stability.

Ahead of the Spring Budget being delivered next week, the cross-party group is calling for more government support to help councils meet these monthly costs and reduce the risk of requiring a Section 114 notice – effectively declaring bankruptcy.

Ever since inflation rates started to climb, five councils have officially issued a Section 114 and there was several warnings throughout 2023.

A top priority is for ministers to lift the ‘unfair’ cap on the money boroughs can receive from the government to subsidise their temporary accommodation spending, which is currently tied to 2011 benefit rates no longer reflecting temporary accommodation costs.

Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, said: ‘Homelessness has a devastating impact on individuals and families, while also bringing massive and unsustainable costs to boroughs’ budgets.

‘Boroughs work hard to house homeless Londoners. However, London’s ballooning temporary accommodation bill is a critical danger to boroughs’ financial stability. If things go on the way they are, it’s no exaggeration to say these enormous costs pose a bankruptcy risk.’

‘We’re urging ministers to boost funding support for boroughs grappling with a worsening homelessness crisis,’ Cllr Rodwell said. ‘Ending the unfair cap on housing benefit subsidy rates for temporary accommodation would relieve much of the pressure on boroughs’ resources, helping us balance the books while providing homelessness support to everyone who needs it.’

In addition to calling on the government to help councils with temporary accommodations costs, London Councils’ analysis also found that:

  • The number of Londoners seeking homelessness support (from their local borough increased 14.5% between September 2022 and September 2023
  • The number of London households living in temporary accommodation arranged by their local borough increased by 7% over the same time period
  • More than 175,000 Londoners are homeless and living in temporary accommodation – equivalent to one in 50 residents in the capital
  • A vast number of private landlords that are renting out their properties as temporary accommodation are cancelling these arrangements, as they are instead renting to private tenants or selling the properties altogether. The number of landlord ‘notices to quit’ received by boroughs rose by 56.5%

Image: Fred Moon

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The UK needs more houses, but how many?

29 February, 2024 - 08:00

In this week’s industry-led feature, Ritchie Clapson, from propertyCEO, acknowledges the fact that the UK is not building enough homes but claims that in order to do so it would help if we knew how many people want to rent or own their own home, but can’t. 

According to the government’s English Housing Survey of 2018/9, the numbers are significant. Over 540,000 households reported having someone living with them who would otherwise be homeless, and 1.6m households reported having a concealed household (i.e. an adult who wants to buy or rent on their own but who can’t afford to do so). The planning consultancy Lichfields made some further projections to determine how many new homes would need to be built each year to house both concealed households and new organically formed households, and they arrived at 389,000, significantly higher than the government’s target of 300,000. The housing charity, Crisis conducted a similar study and estimated that we needed to build 340,000 new homes yearly to make good a 4 million home shortfall within 15 years.

Where did the 300,000 number come from?

If you check the Commons Library online, you’ll see the 300,000 number referred to as an ambition. Even the House of Commons Committee of Public Accounts struggled to get hold of clear calculations; the best answer they received was that the 300,000 was based on a number of studies (at least one dating back to 2004).

Strategic Land Group issued a report in 2023 which considered several different data points. One often-cited source is the Office of National Statistics, whose most recent survey projected that 160,000 new households would form annually until 2028. The ONS’s figure is based on the actual availability of new homes, so if we built more new homes, the ONS’s projection would be higher, so using their number as a basis for the new homes requirement doesn’t work.

Another reference point comes from Centre for Cities, which produced a report in early 2023 which calculated that the UK had a residential housing shortfall of 4.3m homes. Interestingly, they maintain that the decline in housebuilding can be traced back to 1947. Housebuilding rates in England and Wales have dropped by more than a third after the introduction of the Town and Country Planning Act 1947, from 2 per cent growth per year between 1856 and 1939 to 1.2 per cent between 1947 and 2019. They report that we would need to build at a rate of 654,000 new homes per year to make up the deficit within the next decade.

Even if we just accept 300,000 as being accurate (or as good a place as any to start), we don’t necessarily have a clear idea of what that means. To give you a way to imagine how big an ask building that many homes each year is, Wales has around 1.3 million households, so over four years, we would be adding another Wales every time a World Cup comes round. The city of Leeds has about 350,000 households, so we would be building (pretty much) a new Leeds every year. No small feat.

How many houses have we been building?

Over the last twenty years, we’ve averaged less than 190,000 new homes per year, and the largest number we managed was 243,000 in 2019/20. So even a step up to 300,000 would

mean building over 20% more than in our best recent year’s production. Interestingly, Lichfields decided to tot up the number of new homes included in every council’s Local Plan across the country, which turned out to be 216,000. Shockingly, we would need to up production by 40% to get from the number of new homes that local councils think should be built to where the government wants us to be – a telling gap.

Issues beyond bricks and mortar

Plenty of scale home builders would be delighted to build new housing estates and towns up and down the country. But most people don’t want any new houses built anywhere close to where they live. According to Statista, England’s population density is a whopping 434 people per square kilometre. There simply aren’t any large tracts of land going spare in England where you could build a new county or two without anyone noticing. We will need to build next to where there are already many people living, which will be massively unpopular. It would be handy for the government if the general public accepted that new houses just have to be built but remember that when the government lost the Chesham and Amersham safe seat in a 2021 by-election, proposed planning reforms were cited as a key reason for the defeat. NIMBYism persists.

Thinking differently

There is one area where the government has found a way to push things forward: the conversion or redevelopment of unused commercial buildings (a.k.a. brownfield land). Countryside charity CPRE’s State of Brownfield 2022 report suggests that brownfield land for up to 1.2m new homes is currently lying dormant in England. They also cited research that suggests that housing developments on brownfield sites are completed six months more quickly than those on greenfield land.

The significant advantage of these projects is that they will be connected to existing infrastructure. And from a political perspective, brownfield development isn’t a vote loser like greenfield is. As the economy has evolved, so have our requirements for retail and business premises. We no longer need much of our current commercial space, and the number of unused brownfield sites increased by 30% between 2018 and 2022. And recycling empty buildings is usually a vote-winner – after all, who wants a derelict factory on their doorstep, or a dead high street filled with empty shops?

But if you thought brownfield redevelopment was a slam dunk that automatically gets us four years of new housing, think again. Because most brownfield land is in the form of relatively small buildings and plots that don’t appeal to the larger home builders. The likes of Persimmon and co build lots of new houses on large empty fields using existing designs. A one-off, smaller conversion project simply isn’t in their repertoire. Instead, it falls to the smaller SME developers to take on these projects, and luckily, small-scale property development is currently enjoying something of a resurgence, with many first-time developers entering the market. Many are existing landlords who have woken up to the fact that the buy-to-let market is a shadow of its former self and that even doing something as simple as putting flats above a shop can unlock six-figure profits. The government has helped by creating increased permitted development rights that make it easier than ever to convert these buildings. But SME developers still only account for just 12% of the country’s housebuilding, down from 30% in their heyday.

Conclusion

Taking into consideration various projections and challenges, the government’s target of 300,000 new homes per year looks to be on the light side. The complexity of the issue calls for a nuanced approach that involves not only meeting targets but also addressing public sentiment and leveraging alternative solutions, such as brownfield redevelopment. Local and national government need to do even more to ensure that first-time property developers can take advantage of the opportunities that brownfield represents.

Images: Ümit Yıldırım, Ritchie Clapson and Randy Fath

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Environment Agency examines how to reduce flood risks in Birmingham

28 February, 2024 - 16:12

The Environment Agency have created a new scheme that aims to minimise flooding from the River Bourn by building flood storage areas to hold excess water.

The government-owned organisation have begun exploring options to help reduce flood risks in Birmingham. The latest idea has come in the form of the Bourn Flood Risk Management scheme, which includes plans to create flood storage areas around the River Bourn to hold excess water during times of high rainfall.  

Currently, the Environment Agency modelling shows that 200 residential properties and 100 businesses face the adverse impacts of flooding in the Bournville and Stirchley area.

The Bourn is prone to rapid flooding during intense storms as was seen in 2018 when 58mm fell in less than an hour over the Birmingham Conurbation resulting in significant river and surface water flooding. Flooding has also impacted communities in the area in 2008, 2012 and 2016.   

Against this backdrop, sites that are being considered for the new storage flood project are Manor Farm Park, Weoley Hill Park, and Valley Parkway in the Bournville area. When the flood risk isn’t very high, these parks will operate as normal.

Environment Manager for the Birmingham area Suzanne Ward said: ‘We know the devastating impact that flooding can have, which is why protecting people and communities is our top priority. 

‘With anticipated climate change impacts and an increasing urban population, we are likely to see an increase in both the likelihood and impact of flood events in the future.  

‘It’s important to emphasise that no decisions have been made yet and we are still working on a concept design. We are committed to working with the community to seek their views and discuss any concerns they may have.’

The Environment Agency is committed to working with the community and hosted an open drop-in session at Weoley Village Hall in January. To add to this, further sessions and information events are set to take place in future.  

Image: Jonathan Ford

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Charity claims investing in social housing could add billions to the economy

28 February, 2024 - 15:26

New research shows investing over £50bn into the sector could help the economy, including £12bn profit to the taxpayer.

The research, which was commissioned by Shelter and the National Housing Federation (NHF) and published in a report called The economic impact of building social housing, found that building 90,000 social homes each year would generate £51.2bn net of economic and social benefits over the next 30 years.

On a smaller scale, the report states that within three years, building the houses would break even and return £37.8bn back to the economy, largely by boosting the construction industry.

According to the latest research, the UK construction sector is in a downward spiral. Covering the three months to the end of October 2023, figures from Glenigan’s latest index, performance across every vertical was so poor that there was no improvements against the previous three months.

However, the new report found that if new social homes were built, it would generate £4.5bn in savings on housing benefit, £2.5bn of income from construction taxes, £3.8bn of income from employment taxes, £5.2bn in savings to the NHS, £4.5bn in savings from reducing homelessness, and £3.3bn savings to Universal Credit. 

Against this backdrop, the NHF and Shelter said that for decades, successive governments have ‘failed to build enough social homes and every year we lose more than we build through Right to Buy sales and demolitions’. 

As a result, ahead of the next general election, both organisations are calling for political parties to commit to ending the housing crisis. 

Polly Neate, chief executive of Shelter, said that homelessness is a ‘political choice, with a simple solution’. 

She said: ‘Building 90,000 social homes a year will not only end the housing emergency, but due to the wider economic benefits it brings, it will pay for itself within just three years.’

‘Day after day our frontline services are inundated with calls from people who are being tipped into homelessness because there are no genuinely affordable homes available and private renting is just too expensive,’ Polly said. ‘Communities are being torn apart as people are priced out of their local areas – leaving behind their jobs, children’s schools and support networks.’

Polly added: ‘All political parties must make the choice to ending the housing emergency – they must fully commit to building 90,000 new genuinely affordable social rent homes a year for 10 years.’

Image: Uta Scholl

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Addressing the UK’s housing crisis: A look into CMA’s housebuilding report

28 February, 2024 - 10:14

A new report from the Competition and Markets Authority (CMA) has concluded the housing crisis is caused by failed planning processes and a lack of government support.

CMA’s new research, which took 12 months to conduct, has finally addressed what we’ve all been thinking. Whilst looking into the state of the housebuilding industry in England, Scotland and Wales, the government-owned organisation have concluded that ‘the housebuilding market is not delivering well for consumers and has consistently failed to do so over successive decades.’

To address this, CMA, an organisation designed to help people, businesses and the economy by promoting competitive markets and tackling unfair behaviour, make several recommendations, including establishing a new homes ombudsman ‘as soon as possible, and setting a single mandatory consumer code so homeowners can better pursue homebuilders over any quality issues they face’.

In addition, the report, which was published yesterday, also recommends encouraging councils to adopt amenities on all new housing estates and the introduction of enhanced consumer protections for homeowners on existing privately managed estates – including making it easier for homeowners to switch to a more competitive management company.

Commenting on the findings, Rico Wojulewicz, head of policy and market insight for the National Federation of Builders (NFB) and House Builders Association (HBA), said: ‘The CMA report has confirmed that a broken planning process is the reason we have a lack of social housing, why big builders build too many of our new homes and SMEs are shut out, that homes are in the wrong places and too expensive, there are some issues with quality, and we don’t do placemaking.

‘None of this is new or uncontroversial but the UK needed this CMA report to keep hammering home the reality that politicians of all colours are the reason we have a housing and placemaking crisis. It’s time they stopped blaming builders and instead, were held accountable for the mess they have caused and keep causing.’  

Against this backdrop, Richard Beresford, chief executive of the NFB has said the report has ‘correctly identified that the UK planning system does the opposite’ of enabling homes.

‘Planning should be enabling homes, better places and competition which benefits not just Britain, but the British consumer. The CMA has correctly identified that the UK planning system does the opposite,’ Richard said.

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Benefits calculations to be reviewed for nearly 300 carers following investigation

27 February, 2024 - 09:36

Devon County Council has agreed to look into how it calculated allowances to nearly 300 families who look after children as special guardians, following an investigation by the Local Government and Social Care Ombudsman (LGSCO).

During a complaint from a woman who was looking after her grandchild under a Special Guardianship Order, the Ombudsman found the council was wrongly taking into account benefits payments when calculating the allowances it would pay, contrary to the Ombudsman’s long-held position on this topic and government recommendations.

The council wrongly had a blanket policy of deducting child benefit from all special guardians receiving Universal Credit. The council agreed to change this policy with effect from January 2024.

It also confirmed there were 170 other special guardians in the county on means tested benefits who may have been impacted by its calculations, and a further 125 where the council had no information.

Amerdeep Somal, the Local Government and Social Care Ombudsman, said: ‘It is disappointing that the council cannot provide us with any evidence that it considered the individual circumstances of special guardians receiving means-tested benefits before making the deductions and instead applied its policy to everyone without justification.

‘In addition to this, it relied on its own policy to make these calculations – not national guidance – but its policy was based on its misunderstanding of our decisions in other cases.

‘I am pleased the council has now agreed to amend its policy and revisit the calculations it has made to others in its area, but it should not have taken several complaints by this grandmother and our investigation for it to realise that its own policy was wrong.’

The council agreed to apologise to the grandmother and recalculate her Special Guardianship Allowance (SGA) following government guidance, and pay her a sum equivalent to the deductions it has made since January 2022.

It will also pay her £600 for the delays caused by its complaints process and for the lack of support and information following her Special Guardianship Order.

Devon County Council has also agreed to recalculate the SGAs it has paid to the other 170 special guardians using correct guidance and pay them a sum equivalent to any deductions it has wrongly made.

For the 125 carers about whom it has no information, it has agreed to invite them to provide information to enable it to review their financial circumstances and, where appropriate, recalculate their SGAs, backdating any amount due.

The council will also review its complaints system to ensure statutory timescales are being met.

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Biggest landlord MPs in push to gut renters’ reform

27 February, 2024 - 08:00

Five out of the ten MPs in England with the biggest landlord portfolios are involved in efforts to water down the Renters (Reform) Bill.

An analysis of the Register of Members’ Financial Interests conducted by the Renters’ Reform Coalition found that Nick Fletcher (ten privately rented properties), Marco Longhi (ten), Bob Blackman (six), James Gray (four) and Sir Geoffrey Clifton Brown (five) are all among a group of 40 Conservative backbenchers who have signed amendments that campaigners warn will ‘gut’ the legislation.

The amendments, tabled by Conservative MP Anthony Mangnall, include proposals to allow ‘hearsay’ evidence to be used in evictions over antisocial behaviour, delay the bill’s implementation indefinitely, require renters to live in a property for a minimum of six months before they can leave, and abolish council licensing schemes intended to drive up standards.

The Renters’ Reform Coalition highlighted an amendment that would allow fixed term tenancies – the current tenancy regime – to be retained where there is “mutual agreement” between tenant and landlord. Campaigners warned that in practice, landlords have so much power in tenancy negotiations that this would lead to widespread retention of the current system.

The Bill’s development and passage has already seen concessions made to pro-landlord groups, including a delay to the end of section 21 until the courts are reformed, changes to make it easier for landlords to accuse tenants of anti-social behaviour then evict them, and a weakening of the process for challenging rent increases designed to act as disincentive to tenants.

Housing Secretary Michael Gove recently made the latest government promise to ban no-fault evictions, going further than he previously had by saying they would be ‘outlawed’ before the General Election.

At present, a total of 12 of the 40 MPs who have signed the amendments are themselves landlords of properties in England. This is significantly higher than the overall proportion of English MPs who are landlords. The total number of properties being let out by MPs who have signed the amendments is 48.

The Bill is currently still awaiting its Report Stage in the House of Commons, despite having been first introduced to Parliament last May. Meanwhile section 21 evictions continue to rise, with no-fault evictions by bailiffs increasing by almost 50 percent in 2023.

Tom Darling, campaign manager of the Renters’ Reform Coalition, said: ‘Of course, being a landlord doesn’t mean you can’t be an MP. But we think those who personally profit from England’s broken rental market have a particular duty to their constituents to deliver reforms to the private rented sector. Indeed, they all stood on manifestos to do just that in 2019.

‘It is therefore extremely concerning to see these MPs signing up to amendments that would render significant parts of the legislation pointless. What’s more, the government have now invested so much politically in this issue that we are concerned they might be looking to make concessions to these rebels to pass the bill quickly and say they have abolished no-fault evictions – despite in reality introducing a system that won’t be much better.’

‘The truth is the Bill, as written, is not going to be a silver bullet. In reality we need reform that goes much further than the legislation as it stands – with longer tenancies, more time for renters to find a new home when evictions do happen, higher penalties for unscrupulous landlords, and a cap on rent increases to prevent unaffordable rent hikes becoming, in effect, no-fault evictions.

‘The government will be sorely mistaken if it thinks it can pass a toothless Bill written by landlords and then get a pat on the back.’

Image: Ethan Wilkinson

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