Government's housing target under threat

Date: 05/03/2008

A new report reveals that the Government's target of three million homes by 2020 is under threat - unless councils and private sector investors take a front seat in building and managing these new homes.

Today's inquiry report from the All Party Urban Development Group finds that councils need extra support from Whitehall - and especially from the newly created Homes and Communities Agency (HCA) - to deliver the additional homes needed in their areas.

This support would help local authorities solve the very specific housing dilemmas they face. Large parts of the south east are grappling with the challenges of demand and affordability. And some parts of the north are struggling to regenerate communities to create both market rate and affordable housing.

The group warns that the HCA must avoid the temptation to nationalise housing policy and actually work with local councils to address the different needs of housing markets. Instead, the group recommends that the HCA should act as a ringmaster - bringing skills and investment from the public and private sector together, and providing expertise to councils that need extra technical support.

The group also finds that private sector landlords will have a vital role to play in delivering more homes across England. But individual buy-to-let properties won't make up the shortfall. The Government needs to do more to encourage long term, professional institutional investors. Common in the US, Germany and Switzerland, these investors are well placed to build and manage large quantities of affordable, good quality homes, which people actually choose to rent, rather than buy.

Clive Betts MP, Chair of the All Party Urban Development Group said:

"It's time to move beyond national housing targets. We urgently need to get to grips with the practical difficulties of building three million new homes.  Local authorities must play a key role in delivering homes, and they need help to deliver the goods.

"The HCA is in a strong position to bring housing expertise under one roof and give specialist advice to local authorities.  However, more needs to be done to attract long term professional institutional investors into the private rented sector.  Otherwise the number of homes will fall considerably short of the mark."

Eamonn Boylan, Deputy Chief Executive of Manchester City Council (Regeneration) and inquiry witness, commented:

"The work of the group has served to highlight the real opportunity for the new Homes and Communities Agency to work with Local Authorities to deliver sustainable growth and regeneration and to support the economic and urban renaissance of our towns and major cities".

Mark Ryder, Chief Executive of Isis Waterside Regeneration and inquiry witness said:

"This report is timely as the market correction that began at the end of last year offers an opportunity to take stock of how urban regeneration has been delivered and should encourage the development industry to raise its game."

"There can be no quick fix to sustainable urban regeneration and the report underlines the importance of long term solutions to the future of city living based around better use of public sector land, placemaking, the fostering of communities and delivery models that are not reliant on short annual profit horizons."

Contacts

Rosamund Taylor, Media and Communications Officer, Centre for Cities

020 7803 4315/07876 175 426 / r.taylor@centreforcities.org

Kurt Mueller, APUDG Clerk / British Property Federation

0207 802 0128 / kmueller@bpf.org.uk

Notes to Editors

The All Party Parliamentary Urban Development Group (APUDG) is a cross-party Parliamentary body of MPs and Peers committed to progressing urban renewal and sustainable development in the UK. The Centre for Cities and British Property Federation provide secretariat services for the group.

Clive Betts, the group's chair has been Member of Parliament for Sheffield Attercliffe since 1992. Before entering Parliament, Clive worked as an economist for the Trades Union Congress, as Local Government Officer for Derbyshire County Council, and as Local Government Economist for South Yorkshire Council. From 1997 to 2001 he was a Government Whip, and since 2002 he has been a Member of the Department for Communities and Local Government Select Committee.

Inquiry witness spokespeople:

Mark Ryder is Chief Executive of ISIS Waterside Regeneration. ISIS, named after the Egyptian goddess of rebirth and rejuvenation, was formed in October 2002 by British Waterways, Igloo (the regeneration fund of Morley Fund Management) and AMEC Developments (now known as MUSE Developments). ISIS was created with a specific mandate to deliver mixed, balanced and diverse genuinely sustainable communities across the UK

Eamonn Boylan is deputy chief executive of Manchester City Council, who is responsible for regeneration.

Adelaide Wharf

In order to better understand how the issues raised by this report can be addressed, members of the All Party Urban Development Group will be visiting Adelaide Wharf in Shoreditch. This mixed-tenure residential scheme by urban developer, First Base includes 147 one, two, three and four bedroom apartments, 50% of which are affordable with no visible difference between tenures. 30% of the homes are designed for families and all of the homes are to Lifetime Homes standard as well as Secured by Design and the scheme will achieve EcoHomes Excellent.

First Base has committed to the long term success of Adelaide Wharf through its approach to building maintenance and management. There will be integrated management across all tenures with the same property manager, and common service and performance standards. Adelaide Wharf is the first development to be launched under the English Partnerships' London Wide Initiative (LWI), designed to fast-track more quality, affordable homes in Greater London.

Delivering Urban Homes: the role of the public and private sector is available for download on the APUDG website.

The report looks at what needs to be done - by both the public and private sectors - to deliver an improved and enhanced urban housing offer.

The report draws on a range of evidence, including:

• A formal inquiry session, held in the House of Commons on 3 December 2007. A full transcript of the session, including testimony from a range of public and private sector witnesses, can be found on the APUDG website
• Written submissions, to the APUDG from a range of key stakeholders. These were received from 15 groups, including private sector developers, property consultants, urban regeneration companies, regional assemblies, and other public agencies.
• Semi-structured interviews, with 12 stakeholders, including representatives of central and local Government, the private rented sector and property developers, conducted on behalf of the APUDG by Catherine Glossop and Max Nathan at the Centre for Cities.
• Desk-based research, conducted on behalf of the APUDG by Catherine Glossop at the Centre for Cities.