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Housing review calls for a new housing strategy

Housing review calls for a new housing strategy

A new inquiry led by Dame Kate Baker CBE has investigated the crisis in the housing market after a 20 year gap since her last housing study. 

The Radix Big Tent Housing Commission (RBT HC) report concludes with calls for the introduction of a clear new housing strategy that treats housing as national infrastructure, and a reorganisation of government roles to meet the government's 1.5m new homes targets.

The report sets out 15 steps that need to be taken to hit a target of 1.5m new homes to be achieved in this parliament.

The study – by the Radix Big Tent Housing Commission – concludes that it is “crucial that not only those who are renters of necessity but also those that are renters of choice have the opportunity to live in sustainable, high-quality and safe homes.”

Dame Kate Barker CBE led the Commission into England’s housing shortage. She undertook inquiries into housing supply and land use planning for the last Labour Government and led the new Commission on behalf of radical centre think tank, Radix Big Tent, with the support of law firm Shoosmiths.

The Radix Housing Commission focused specifically on England’s housing shortage. Its main aim was to make recommendations as soon as possible after the election of the new Labour government.

The report could be seen as a ‘sequel’ to the Barker Review of Housing supply published 20 years ago. This new report sets out what it claims as an innovative new framework for housing delivery. This includes what it deems a “clear strategy”, which entails a new housing delivery unit at the heart of government. It needs cross-party collaboration and clarifies roles for different tiers of government, says the report.

Historic failure

The report identifies failings of government over an extended period: “the failure to meet decades of housing targets or fully adopt the recommendations of the 2004 Barker Review lies predominantly with flawed governance structures”.

Twenty years after Baker’s landmark review of housing supply, the economist chaired this latest study of England’s housing shortage until she was appointed to the government’s New Towns Taskforce in July.

Alex Notay, the report’s main author, who took over from Dame Kate Barker as commission chair in August, has said: 

“Most indicators show that the housing market is now in a worse state than it was two decades ago. There has been a failure to link new housing with infrastructure delivery and also, since the financial crisis, a further decline in the supply of new social rent homes.

“The golden thread of our recommendations is to urge the government to ensure that any policy change is assessed against every aspect of the housing ecosystem. Unblocking the various viability issues addressed in our report – alongside the strategic planning proposals we make – would be transformative. It is possible to do this if these bold recommendations are acted on holistically and proactively.”

The final report

The final report, titled Beyond the Permacrisis, has set out 15 recommendations to achieve a build target of 1,000 homes a day. This amount of new housing – which is already falling behind - over the course of this parliament is the government is to meet its 1.5 million new homes target.

Another main recommendation is the establishment of a new cross-department housing delivery unit. The idea is that the unit will coordinate policy across the government and engage with key players such as the Bank of England and financial and utility regulators.

Politicians say the report is urged to “forge a cross-party accord” to create policy consensus, and to provide builders with “clarity and certainty and improve the delivery of large schemes.”

The report also calls for a “new approach” to the release of public land for housing, and a new role for Homes England so it can act as a master developer, potentially working with development corporations or other bodies.

Involve landlords

Landlords are key players and should be treated the same as housebuilders, says the report. This is to recognise their vital role in the housing market. The Commission has also given its backing to the NRLA’s campaign for the government to improve the operation of the court system ahead of the implementation of the Renters’ Rights Bill.

This new report comes at a time when the English tribunal system and the courts are already overstretched and ill-equipped to handle what is likely to be a surge in new claims after the introduction of the Renters’ Rights Bill.

The bill abolishes the Section 21 eviction process which means that landlords, instead of being able to use a paper-based system of eviction, as now, will be forced to use Section 8, which entails a court appearance. 

A multi-discipline affair

The Radix Big Tent Housing Commission (RBT HC), established by the thinktank, Radix Big Tent, brought together a mix of property professionals, developers, investors, planners, academics and others, all supported by the law firm, Shoosmiths.

Ben Rich, chief executive of Radix Big Tent, has said: 

“This programme is both practical and radical. We commend the priority that the new government has given to delivering housing, but they will need a roadmap such as this if they are to have any chance of meeting their housing and indeed their net zero targets. We stand ready to support the government in this challenge.”

The report’s 15 recommendations include:

  • A new cross-departmental Housing Delivery Unit to coordinate housing policy delivery across government
  • To engage with key stakeholders such as the Bank of England and financial and utility regulators
  • A cross-party accord to create policy consensus and improve the delivery of schemes across the UK
  • A new approach to the release of public land for housing
  • A new role for Homes England so it can act as a master developer
  • Streamlining existing funding pots and processes, replacing “wasteful and divisive” short-term competitive funding model with longer-term, needs-based funding formulae
  • Encouraging institutional investment in housing, by creating a level playing field for tax, clarity of vision and consistency of regulation
  • Reforming the current system of developer contributions through Section 106 and the Community Infrastructure Levy, with a particular goal to deliver more affordable housing
  • Agreeing a prompt rent settlement that provides income security for registered providers
  • The report also seeks to provide a “route map” it says would improve the planning process, based around
  • The reintroduction of strategic planning and a plan-led approach to sustainable growth
  • Diversifying the market and expanding the role of SMEs and self-commissioned housing
  • Rebuilding capacity and capability within the public sector

How it went

Lisa Tye, a report commissioner and living sector co-head at Shoosmiths, has said: 

“The goal of this commission was to identify and propose actionable, pragmatic solutions to address England’s housing crisis.

“We engaged experts from across the real estate industry, who shared their insights on operating in the current market, and explored how a combination of major reforms and incremental changes could help foster a better environment to ensure delivery on the ground – addressing the planning system, unlocking investment, creating jobs and opportunities, and delivering a diverse mix of new homes.

“This has been a truly cross-sector collaboration, and we’d like to thank everyone who contributed their time and expertise. While my fellow commissioners may not universally agree on every recommendation, we are united in the belief that change is essential to delivering the critical housing and infrastructure that England needs.

“We believe this report marks an important step toward that goal, offering a roadmap to revolutionise the delivery of new homes across the country.”

The report Commissioners were:

Dame Kate Barker CBE (chair), chair of the 2004 ‘Barker Review’ on UK Housing Supply and the subsequent review on UK Land Use Planning (2006); author of Housing: Where’s the Plan (2014), former member of the National Infrastructure Commission

Lord Richard Best, social housing leader and member of House of Lords Built Environment Committee

Richard Blyth, head of policy at the Royal Town Planning Institute

Paul Brocklehurst, chair of the Land, Planning and Development Federation and former head of Catesby Estates

Tom Chance, CEO, Community Land Trust Network

Rick de Blaby, CEO, Get Living

Melissa Mean, director at WeCanMake, a community-based project to create affordable homes by unlocking micro-sites for development

Alexandra Notay, placemaking and investment director at Thriving Investments, and Independent Board Commissioner on the UK government’s Geospatial Commission

Elsie Owusu, founding chair of the Society of Black Architects

Vicky Pryce, chair of Radix Fellows and leading economist

Ben Rich, CEO, Radix Big Tent and former secretary to Lord Rogers’ Urban Taskforce

Jackie Sadek, director at Urban Strategy and urban regeneration expert

Andrew Taylor FRTPI, group planning director at Vistry Group

Lisa Tye, partner and living sector co-head at Shoosmiths

Doreen Wright, commercial director at A2Dominion Group

Dr Catriona Riddell, expert in strategic planning issues working with local authorities

Interestingly, there’s no direct private landlord representation on the committee.

Worse than 20 years ago

The UK’s housing crisis has been a pressing issue for many years. Demand far outstrips supply both in owner occupation and rentals. There’s been a combination of factors including population growth, limited land availability, and restrictive planning policies and some would argue an increasingly difficult environment for private landlords. 

All this has led to a significant shortfall in new homes and rentals, pushing prices and rents up and making homeownership unaffordable for many people. This problem has become particularly acute in urban areas where property prices and rents have soared, leaving many young people and especially low-income families completely locked out of the housing market.

Consequently, after the inquiry Dame Kate Barker concludes that the housing market is worse than it was 20 years ago when she did her initial research. The new Labour government has committed to correcting most of the shortfall over the period of this government.  

In her letter to housing minister Matthew Pennycook MP, Dame Barker’s key recommendations as well as those above, include the government reinstating the National Housing and Planning Advice Unit, creating robust mandatory housing targets and establishing a cross-departmental implementation unit within the cabinet office.

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