Unveiling plans to build a million new homes in England by 2020, the government's Housing White Paper outlined proposals to accelerate the house-building process by forcing local authorities to produce plans to release sufficient land for building in areas where people want to live and by making developers start constructing homes within two years of planning permission being granted, instead of the current three years.Additionally, a £3 billion Home Building Fund will be created to help small independent builders enter the market, and there are plans to make it easier for developers to offer affordable private rental homes. The government also said it was working with the British Property Federation and the National Housing Federation to ensure that “family friendly” tenancies of three or more years are available for renters.

High-density construction

The White Paper also said the government would release surplus public land with a capacity for 160,000 homes during this Parliament and that better use should be made of land by encouraging high-density construction.Housing Minister Gavin Barwell said, “We owe it to our children and our grandchildren to fix the broken housing market problems and help them find a home of their own.”The government's proposals seemed to accept that, at a time of a shortage of housing stock across the country and with the price of an average home now costing nearly eight times the average earnings – and more than twice that in London – there was a need for new construction to accommodate long-term renters, not just would-be buyers.

Councils need access to funding

Martin Tett, housing spokesman for the Local Government Association, said, “Councils desperately need the powers and access to funding to resume their historic role as a major builder of affordable homes.“This means being able to borrow to invest in housing and to keep 100 per cent of the receipts from properties sold through Right to Buy (instead of the third councils keep at present) to replace homes and reinvest in building more of the genuine affordable homes our communities desperately need.”Stewart Baseley, executive chairman of the Home Builders' Federation, said, “The White Paper recognises that the private sector house building industry is key to addressing the chronic housing shortage we face and outlines steps to assist it deliver more homes. The industry is a major part of the solution and is committed to continued growth.“Huge progress has been made in recent years in terms of increasing housing supply. If we are to build more homes and meet the country’s acute needs, all parties involved in housing supply must up their game. “The industry is determined to meet the challenges laid down by government and help deliver more homes more quickly. We will look to work with government on the detail of the measures announced today to ensure they will lead to many more new homes being built in the coming years.“Plans to speed up the planning process, bring forward more developable land and make local authorities abide by their responsibilities are key. If we are to build more homes, we need more land coming through the system more quickly. Measures that will allow SME builders to build more homes will increase the capacity of the industry and result in increases in overall supply.”

'Re-treading old ground'

But Paul Goodman, chairman of the National Association of Commercial Finance Brokers (NACFB), felt there was little new in the government's proposals. “Today's white paper should have been a solid assertion that small and mid-size construction companies are going to get the support they need to start building in serious numbers,” he said.“Instead, if (Communities Secretary) Sajid Javid's speech to parliament is anything to go by, it just looks like the government is re-treading old ground.“The government's commitment to 'innovative' building practices and its re-assertion of the pledges made around the £3 billion Home Building Fund is encouraging, but we heard all this last year. What our broker members are seeing on the ground is that funders have a real appetite to financially support these developments – so there's clearly a disconnect.“Education has an important part to play here. High Street lenders can play a large part in funding these developments, but construction SMEs should be aware that there are a range of funding options available to them – beyond just the High Street.“It is therefore vital that the government emphasises the range of financial options available to SME builders, and that they can continue to access the finance they need to get Britain building.”Naomi Heaton, CEO of residential funds and asset management company London Central Portfolio (LCP), also felt the White Paper did little to fix the problems in the property market and described it as “underwhelming response” by the government.

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“Reiterating the grave problems facing the housing market, about which we are all too familiar, there was a distinct absence of any detailed implementation programme,” she said.“Having lobbied the government on the inadequate supply of rental property, LCP welcomed the sentiment in today’s paper to assist families within the private rented sector as well as those wishing to buy their own homes.  At last the government has woken up to the fact that not everyone aspires to home ownership, with an increasingly mobile workforce and a generational change in lifestyle.

Commercial nature is overlooked

“However, very little detail was included as to how these policies will be executed or enforced. These announcements simply do not go far enough to tackle the growing lack of private rented sector supply with a 1.8 million shortfall anticipated by 2025, according to RICS (Royal Institution of Chartered Surveyors). More information on the ban on letting agent’s fees was also absent, which now is to be subject to consultation.“For developers, with an announcement of an increase of up to 40 per cent in planning fees, the commercial nature of the industry is once again being overlooked, as is their crucial role in providing affordable housing.“On the whole, the much-hyped Housing White Paper appears to do very little to ‘fix our broken housing market’.”However, Rob Weaver, director of investments at crowdfunding platform Property Partner, commented, “With more and more people forced to rent permanently, it’s clear that there is an urgent need for affordable rental stock, longer-term tenancies, particularly for families, and a professionalised rental sector.

Commitment to boost rental stock

“The new commitment to boost the supply of affordable rental stock is clearly a sage one and if successful will help ensure that rental prices remain in check with wages, and other prices in the economy.“The concept of introducing properties designated for long-term rental is a bold move. Properties will remain in the rented sector for a set minimum period of time, which should reduce prices and help keep rental values lower. Ownership of this type of property may well be restricted to primarily large institutions.“We welcome the tougher action promised against rogue landlords making the rental market a safer, more secure place for tenants. Fair rents, improved rights for tenants and first-class professional management is something we fully support. But it needs to be effective and not an additional burden to the good landlords, as the landlord selective licensing scheme seems to have been.”For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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