Labour is unlikely to meet its flagship pledge to deliver 1.5million new homes in five years, industry experts have warned – as new laws to get Britain building are presented to Parliament. Deputy Prime Minister Angela Rayner vowed to create “the biggest building boom in a generation” as the Government introduced a new Planning and Infrastructure Bill designed to streamline the planning process and allow the creation of entire new towns.
It follows Labour’s manifesto pledge last year to deliver 1.5million new homes before the next general election. Industry experts welcomed the changes but warned they would not allow the Government to meet its hugely ambitious target, which would mean increasing the number of new homes from about 200,000 annually today to 300,000.
Steve Turner, executive director of the Home Builders Federation said: “The planning changes are very positive, but on their own going are not going to result in a significant increase in activity and further policy levers will need to be pulled to stimulate supply.
“Demand for new homes is suppressed by a lack of affordable mortgage lending whilst housing associations are unable to take on the affordable homes delivered as part of planning permissions. Early signs are positive, but more needs to be done to deliver the ambition they have set out.”
Builders face fixed costs such as the price of land and cannot simply cut prices to make properties more affordable, he warned. It means first-time buyers in many parts of the country cannot afford mortgages.
Industry experts also raised concerns with the Commons Housing, Communities and Local Government Committee, with the Housing Forum warning the 1.5million goal could take twice as long to achieve as Labour hopes.
Anna Clarke, director of policy and public affairs, told MPs: “It is not very likely that we will hit it in this five years but, if we are doing all the right things now, we might hit it in the subsequent five years.” The Housing Forum represents councils and housing associations, as well as developers.
The Royal Town Planning Institute has warned that the number of staff in council planning departments fell by a quarter over the past five years, making the planning process slower.
Measures in the Bill are designed to prevent “NIMBYs” blocking new developments including housing – with decisions taken out of the hands of local authority planning committees, which typically involve councillors. More decisions will now be made directly by council officials instead.
Proposed developments will be fast-tracked if they comply with local plans drawn up by councils. These set out broad targets, such as building more homes, and identify areas suitable for development. Local plans must in turn comply with the National Policy Framework set out by the Government.
Ms Rayner said: “It will help us to deliver the 1.5million homes we have committed to so we can tackle the housing crisis we have inherited head-on – not only for people desperate to buy a home, but for the families and young children stuck in temporary accommodation and in need of a safe, secure roof over their heads.”
But Conservatives pointed out that Labour had scrapped schemes to help people buy homes. Kevin Hollinrake, Shadow Housing Secretary, said: “These proposed changes will do nothing to help ordinary Brits onto the housing ladder because the Government has scrapped Stamp Duty discounts and Help to Buy that helped around one million first-time buyers purchase a home. Nor will they take the action needed to control our borders and cut immigration.”