The stark warning from housing secretary, Sajid Javid, that local authorities could lose the right to rule on planning applications if they fail to meet house-building targets, could have wide-reaching implications.
A new planning policy framework will introduce rules to determine how many homes councils must build – with bigger targets for areas where the cost of housing is particularly high relative to average earnings.
If local authorities fail to meet these targets, their right to rule on planning applications locally could be passed over to planning inspectors. Developers could also be denied planning permission if they take too long to build.
The quality of construction
One concern is whether the quality of housing could be compromised in the rush to build homes more quickly. While initiatives that encourage more house building should be welcomed, we must make sure that we’re building high quality homes. Local authorities need to ensure that house builders don’t consider building regulations as the standard to aim for, but as the bare minimum.
Another potential concern is if developers were to see modular structures as a solution to the challenge of building at a faster pace. Modular homes tend to have short shelf lives and are more likely to be affected by damp, which can cause health problems. There is also a widespread lack of understanding of how such properties behave in an event of flood, fire or escape of water which needs to be addressed.
Local authorities may also feel under pressure to approve developments in areas of higher flood risk. It is vital that where there is increased risk of flooding, councils insist on appropriate mitigation measures, such as sustainable drainage systems.
Management of long-term housing needs
There is a need for local authorities to understand how the housing mix in their area matches local demand. For example, if lots of starter homes receive approval to give young, first-time buyers a step onto the housing ladder, you then have to consider whether you’ve got enough larger properties for them to move into when they start having families. Then there is the potential knock-on effect on local infrastructure. Will you have enough school places? Will your roads be able to cope with all the extra cars?
While house builders will be under pressure to move forward with developments quickly once planning permission has been granted, there is a danger that this could simply lead to more selective choices of development sites, and the type of housing built.
From a social housing perspective, there is also the question of how many registered providers have the capacity to build on a larger scale. One way the sector might look to respond to this challenge is with an increase in merger activity. L&Q, for example, is planning to deliver 100,000 new homes on the back of its merger with the East Thames Housing Group and subsequent acquisition of Gallagher Estates. Local authorities may also become more directly involved in house building and Brighton and Hove Council is an example with its £120m joint venture with Hyde Homes to deliver 1,000 affordable homes locally.
A shortage of labour, however, is a problem which might be trickier to overcome, and one that could be exacerbated by Brexit. Some reports estimate that as many as 200,000 construction workers could be lost if Britain leaves the single market.
While there are no easy answers to the challenges outlined above, it is important local authorities and registered providers of social housing understand the significance of the new planning framework, and how it could impact upon their organisation, as the Government has said it could be implemented as early as this summer.
Allison Whittington is head of housing at Zurich Municipal
