The housing white paper: Guardian nails it!

Not so long ago, the communities secretary, Sajid Javid, sounded like the scourge of the big housebuilders as he complained that current rates of housebuilding were “not good enough”. His white paper on housing upgraded the rhetoric to describe the market as “broken” but it would be hard to conclude the fix-it plan will make life uncomfortable for the likes of Barratt, Persimmon and Taylor Wimpey.

The stick that Javid has chosen to beat the big boys looks more like a twig. Developers will be forced to build on land within two years of gaining planning permission. That is a reduction from the current cut-off of three years but, given that most developers tell us they start building almost as soon they receive permission, the switch may be barely noticed.

At a push, one might say government assistance for small housebuilders could inject more competition. But, if the sight of profit margins at 20%-plus across the sector hasn’t brought forth a rush of new rivals, the problem may go deeper than a lack of official encouragement for the smaller brigades.

Javid’s greater focus seems to be funding more “affordable” homes, to be delivered chiefly by housing associations and local authorities. Since the big boys tend to be uninterested in the affordable end, they’ll be happy to let others get on with the job. Share prices across the sector rose gently, and one can understand why. The big boys can continue building at their current steady rate and their special dividends can keep flowing.”

https://www.theguardian.com/business/nils-pratley-on-finance/2017/feb/07/housing-white-paper-builders-sajid-javid

Sidouth shed cliff fall captures Daily Mail attention

Better get a bit of a move on with that beach management plan:

“The huge plume of red smoke left when the rocks collapsed in Sidmouth, Devon, could be seen from miles around and Paul Griew’s shed was left shattered on the rocks below.”

http://www.dailymail.co.uk/news/article-4200762/Resident-cliffside-street-sees-shed-disappear-sea.html

Housing White Paper: “damp squib”

The Government has finally unveiled its plans to fix the ‘broken housing market’ in a white paper spanning 104 pages.

Among lengthy reiterations of existing housing policy schemes including Help to Buy were proposals to stop developers land banking, try to speed up planning approvals and support the delivery of more homes to rent.

But some experts have already dubbed the plans a ‘damp squib’ with little hope of fixing anything.

Secretary of State Sajid Javid told the BBC Radio 4 Today programme before revealing the bill: ‘People want a decent home to buy or a decent home to rent, it’s a choice for them, we should be helping both types of tenancies.’

But Shadow Secretary of State for Housing John Healey called the paper ‘feeble’ and added: ‘We were promised a white paper; we’ve got a white flag.’

He was not alone in his disappointment. Simon Gerrard, past president of the National Association of Estate Agents, summed up how most pundits in the industry felt about this long-awaited paper.

“Today’s announcement shows that the Government is good at producing soundbites, but not realistic solutions. It demonstrates a lack of understanding of the market and what is required to fix it.

‘The schemes outlined will be discussed and debated for longer than they are implemented, with nothing new being offered. We need to simplify the system and make it easier to build homes that people want, quickly, and I am disappointed this has not yet been achieved.”

… Jonathan Manns, head of regeneration and director of planning at Colliers International, said: ‘Dig into the (*cough*) detail and, beyond the hollow and misguiding rhetoric, there are odd tweaks to the status quo.
‘Councils, we’re told, should continue to review the targets in their local plans and ensure they’re up-to-date. Hardly ground-breaking but reassuringly familiar.’

The Government is also proposing to cut the time local authorities have to approve planning applications from three years to two.

Will it help? Gerrard doesn’t think so: ‘The introduction of capping the time between obtaining planning permission and starting construction to two years is misguided. It is not the timescale that hinders building across the UK, but the planning system itself.

‘All too often, permission is granted that is simply impossible to implement because local government departments do not communicate effectively with each other.’

http://www.thisismoney.co.uk/money/mortgageshome/article-4196264/How-Housing-White-Paper-plans-affect-you.html

Yet another consultation on our “broken” housing market (yet another opportunity for developers to shaft us?)

Here is the White Paper”:

Click to access Fixing_our_broken_housing_market_-_housing_white_paper.pdf

Here is the consultation document on it:
https://www.gov.uk/government/consultations/fixing-our-broken-housing-market-consultation

This consultation closes at

11:45pm on

2 May 2017

[just before local elections …]

You can respond online here:
https://www.surveymonkey.co.uk/r/QLLWWSS

Another opportunity for the public not to be listened to, another chance for the government and developers to create loopholes.

A first thought: if “small builders” are going to be encouraged to build the cheapest houses, how do they get the economies of scale the big builders get? Well, we could charge no VAT at all on smaller, affordable house building on small sites of say 10 homes or less and LOTS OF VAT on luxury houses on big sites.

What’s that? It’s the sound of the big developer choking on their pate de foie gras whilst trying to phone the Tory party chairman? Surprise, surprise!

Land unavailability

A comment under the article on the new housebuilding “initiatives” in The Guardian today:

The impact of land unaffordability on the real economy and disposable income/savings of the majority of the residents of England …

A. 69% of the land in England is owned by 0.6% of the population.

B. 33% of the land in England is still owned by the aristocracy.

C. Most of the land suitable for housing owned by government, Local Authorities and other state bodies was used up in the post WW11 housing drive.

D. UK cities rest upon 8% of the UK land mass and house 54% of the population.

E. And what of the fabled Green Belt?

UNREAL ECONOMY Most of the land suitable for housing is in the ownership of the landbankers whether they be aristocrats, private sector groups and the like.

REAL IMPACT The current land situation guarantees that most under 35’s will only own 24 square feet of land by the end of their lives and face a life where their income will be used to mostly pay rent.”

https://www.theguardian.com/society/2017/feb/07/councils-to-be-told-to-build-thousands-more-new-homes

“BBC commits £8m for 150 local democracy reporters to cover council meetings”

Well, the need for a BBC-paid journalist to work for a newspaper that already has “a previous track record of public service journalism” should knock out the odd newspaper group in our area! Perhaps there should be a further qualification that the newspapers should receive less than 50% of that area’s council advertising budget too! And a shame that they won’t be allowed to attend Local Enterprise Partnership board meetings which are held in secret.

“The British Broadcasting Corporation (BBC) is to fund 150 news reporters to cover council and public meetings across the UK to enable better scrutiny of council proceedings and decisions.

The journalists will work for “qualifying” regional publishers rather than the BBC, with the remit of covering full council and committee meetings, and will share the information gained with the BBC. To qualify, local news organisations will need to demonstrate that they have a “previous track record” of public service journalism, as well as the ability to employ staff.

James Harding, director of BBC News and Current Affairs, said: “As more power is devolved across the UK, it’s more important than ever that we cover, understand and hold to account local politicians and public services,” he said.

The initiative forms part of the BBC’s new charter which commences this year and is aimed at filling the growing gaps in local news reporting as local newspapers have suffered from declining revenues.

So far, the BBC has allocated 20 reporters in Scotland, three in Northern Ireland, 11 in Wales and 104 in England, with plans to place the full 150 journalists by 2018.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=29922%3Abbc-commits-p8m-for-150-local-democracy-reporters-to-cover-council-meetings&catid=59&Itemid=27

Housing market ” broken” says government – duh!

Owl says: funny how it took the government SO long to see the “housing market” is, and always has been, broken under their tenure.

Still, lots of developers have got VERY rich on the back of their mistakes … developers who give LOTS and LOTS of money to the Conservative Party and who basically were given the National Planning Policy Framework to write in their own image.

However, now that there is a real possibility of losing millions of votes from people in dire housing need – the “just about managing” that they must capture and keep if they want to stay in power not just feckless Labour voters – more tinkering at the edges is being offered, rather than real solutions.

What is needed is what happened after WW2: a massive government housebuilding programme – NOT developer-led.

Still, never too late …! Although Brexit now pushing up materials costs due to the devaluation of the pound coupled with a shortage of skilled labour makes this the worst of times for the government to dig itself out of a very big hole.

“England’s housing market is “broken”, ministers have admitted, as they unveil plans to build more affordable homes.

The new housing strategy for England includes forcing councils to plan for their local housing needs and giving them powers to pressure developers to start building on land they own.

Communities Secretary Sajid Javid said people want a decent home not a “false choice” between renting and owning.

Labour accused the government of “seven years of failure” on housing.
The government says at least 250,000 new homes are needed each year to keep pace with demand and local councils and developers need to “get real” to the scale of the challenge.

Mr Javid will set out the details of the housing White Paper in a statement to MPs.

Measures are expected to include:

Forcing councils to produce an up-to-date plan for housing demand
Expecting developers to avoid “low density” housing where land availability is short
Reducing the time allowed between planning permission and the start of building from three to two years
Using a £3bn fund to help smaller building firms challenge major developers, including support for off-site construction, where parts of buildings are assembled in a factory
A “lifetime ISA” to help first-time buyers save for a deposit
Maintaining protection for the green belt, which can only be built on “in exceptional circumstances”
So-called starter homes, championed by ex-PM David Cameron, will be aimed at “households that need them most” with combined incomes of less than £80,000 or £90,000 in London.

The government said there would be a change in focus from starter homes – which will be offered to first-time buyers at a discount – to “a wider range of affordable housing”.

Mr Javid will say: “Walk down your local high street today and there’s one sight you’re almost certain to see. Young people, faces pressed against the estate agent’s window, trying and failing to find a home they can afford.
“With prices continuing to skyrocket, if we don’t act now, a whole generation could be left behind. We need to do better, and that means tackling the failures at every point in the system.

“The housing market in this country is broken and the solution means building many more houses in the places that people want to live.”

Asked if ministers were abandoning their goal of increasing home ownership – an ambition of most post-war Conservative governments – Mr Javid told BBC Radio 4’s Today that the approach “shouldn’t all be about ownership”.
“It is a false choice. The reality is we need more homes, whether to rent or buy.”

With house prices now eight times average earnings and the number of affordable homes being built at a 24-year low, he said the cost of housing was the “greatest barrier to social progress in Britain today”.

Many councils, he added, had “fudged the numbers” when it came to assessing local housing needs and this had to change.

Ministers have admitted the government is behind schedule in its efforts to build one million new homes in England by 2020.

The Campaign to Protect Rural England welcomed what it said was a focus on addressing current failings rather than “meddling” with the planning system.
“We are pleased that ministers have recognised that weakening the Green Belt is unnecessary,” said chief executive Shaun Spiers. “But with 360,000 houses already proposed for Green Belt land the government needs to do much more to uphold national policy and stop councils releasing it for development.”

Labour’s shadow housing minister John Healey said: “The measures announced so far in Theresa May’s long-promised housing white paper are feeble beyond belief.

“After seven years of failure and 1,000 housing announcements, the housing crisis is getting worse not better.”

http://www.bbc.co.uk/news/uk-politics-38884601