19th January 2005 IPPR seminar 1

The Government’s approach to housing

Simon RidleyHead of Housing & Urban

Team

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Overview

• Government objectives for housing• The problem

Nationally and in the SE

• Government’s approach Sustainable Communities Plan, implementing

Barker Review, investment, regional agenda, environmental sustainability

• The challenge of delivery

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The Government has a complex set of objectives for housing

• Access to decent shelter for all• Macroeconomic stability• Labour mobility • Housing’s role as an asset• Environmental and social sustainability• Regional growth balanced

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Long-term imbalances between supply and demand are costly to the economy and households

• Over last 30 years UK house prices went up by 2.4% in real terms compared to European average of 1.1%

• In 2002 only 37% of new households in England could afford to buy a house compared to 46% in late 1980s

• Ratio between lower quartile house prices and lower quartile incomes in SE increased by 83% in last 6 years

• Increased pressures of homelessnessSources: HMT EMU study, Barker review, GOSE

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Different parts of the country are experiencing different problems

Total Household Growth (Household Projections) vs. Total Stock Growth (current RPGs)

2004 to 2016

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Northhousehold

growth

North stockgrowth

Midlands & SWhousehold

growth

Midlands & SWstock growth

South & Easthousehold

growth

South & Eaststock growth

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The Government is dedicated to providing decent homes for all

• Delivering the Sustainable Communities Plan• Implementing the Barker Review • Investing in infrastructure and social housing• Supporting growth in every region• Ensuring new housing is environmentally

sustainable

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The Sustainable Communities Plan sets out the Government’s overall agenda

• £1.2bn market renewal programme aims to revive failing housing markets in areas of low demand

• Growth areas strategy focuses growth in 4 areas across wider SE to deliver 200,000 homes above existing plans

• Major investment across growth areas: £3.1bn for new transport schemes such as CTRL £60m additional health spending for PCTs Schools investment programme to take account of growth Abolition of ‘ceilings’ to ensure fast-growing local

authorities not penalised

• 80% of new development in Thames Gateway on brownfield sites

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The Government is committed to implementing the Barker review to tackle long-term under-supply

Government response to Barker by end 2005• Investment in social housing and through £200m

Community Infrastructure Fund• Establish affordability goal by end 2005• Reform PPG3 to enhance responsiveness• Merge regional housing and planning bodies,

supported by strong advice• Examine local incentives to support growth• Consider whether PGS is effective and workable• Work with industry to improve customer satisfaction,

skills and design

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A programme of major infrastructure investment is taking place in every region

Infrastructure investment in the SE

0100200300400500600700800900

£ m

illi

on

1998-99

2002-03

Source: PESA 2004, HMT

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The Government’s regional agenda is supporting growth across the UK

• HMT/ ODPM/ DTI shared PSA to reduce the gap in growth rates between regions

• The Government is committed to strengthening the regional role in increasing productivity

• Ongoing devolution of decision making: Lead role of RDAs in promoting economic

development Strategic planning at the regional level for

economic development, housing, planning and transport

Consultation on regional funding guidelines to encourage greater prioritisation and co-ordination between different regional strategies

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Action is being taken to ensure new housing is environmentally sustainable

• Continue to improve the environmental performance of buildings and developments during their planning, design, construction and in use

Sustainable Buildings Code being introduced by end 2005

• Use land more efficiently and protect valuable green space

Average densities in UK up from 25 dwellings per hectare in 1995 to 33 dwellings per hectare in 2003

67% of new development in 2003 on brownfield land, up from 56% in 1997

an additional 19,000 ha of green belt has been created

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“We have a fantastic once-in-a-generation opportunity to create new sustainable communities”

The challenge for everybody: central, regional and local

government, industry and communities is delivery:• Regional spatial plans • Sustainable Communities Plan• Barker implementation• Investment in social housing and infrastructure• Communities that are environmentally

sustainable