The national housing shortage is one of the most pressing issues we face. The last time this country built more than 250,000 homes a year, councils built more than 40 per cent of them. Only an increase in all types of housing will ensure we can deliver 300,000 homes a year. A genuine renaissance in council housebuilding should play a major role in this.
Key messages
- The national housing shortage is one of the most pressing issues we face. The last time this country built more than 250,000 homes a year, councils built more than 40 per cent of them. Only an increase in all types of housing will ensure we can deliver 300,000 homes a year. A genuine renaissance in council housebuilding should play a major role in this.
- The lifting of the housing borrowing cap for some councils in areas of the highest demand is a positive step, but it does not go far enough. We are calling on the Government to accept the call of councils and the Treasury Select Committee to lift the cap entirely for all areas. This will enable vital investment in new and existing homes.
- Councils should also be allowed to use 100 per cent of receipts from Right to Buy sales to invest in new homes. Recent LGA analysis reveals almost £3.5 billion in Right to Buy discounts have been handed out to council tenants over the past six years, leading to a quadrupling in sales. As local authorities are only permitted to retain a third of receipts, replacement homes have lagged far behind.
- A proactive, well-resourced planning system is vital to building the homes the country needs. Councils are working hard to deliver the right kind of homes, and are currently approving nine out of ten planning permissions. However, planning departments are severely under-resourced. Taxpayers are currently subsidising the costs of applications by around £200 million a year.
- Councils need the flexibility to raise planning fees locally to meet their local housing needs. We are pleased that the Government has passed regulations enabling planning authorities to raise fees by an initial 20 per cent. In addition, a further 20 per cent increase should be allowed for all local planning authorities.
- It is positive to see Government investment in building new homes. The doubling of the Housing Infrastructure Fund is particularly welcome, as is investment in the Affordable Homes Programme. All councils must have a leading role in shaping this investment to ensure that new housing and infrastructure meets the needs of their local communities.
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Debate on housing, planning and the green belt House of Commons, 6 February 2018