Newly appointed Secretary of State Ruth Kelly has been advocating the need for increased housing supply from the moment of her appointment, while Shadow Chancellor George Osborne has reaffirmed the Conservative Party’s commitment to increased supply. One the face it, the political consensus for increasing housing supply is strengthening, but the battle is by no means won.
The Planning-gain Supplement continues to be the issue of greatest concern, with many questions remaining. HBF has had the opportunity this month to offer constructive insights, including giving evidence to the ODPM Select Committee.
Political news
Cabinet Reshuffle
The Prime Minister reshuffled the Cabinet on 6 May. The key changes for HBF are that John Prescott and David Miliband have left the ODPM which has been renamed the Department for Communities and Local Government (DCLG). Ruth Kelly has taken over as Secretary of State and I have written to her to seek an early meeting. Ministerial continuity at DCLG will rest primarily with Yvette Cooper who continues as Minister for Housing and Planning. Angela Smith has been appointed junior minister responsible for building regulations.
Relationships with political stakeholders
Planning-gain Supplement
Discussions with ministers and officials suggest the Government is committed to introducing some form of planning-gain supplement. The next announcement is expected with the Pre-Budget Report in December.
HBF have formed a specialist member working group, chaired by Berkeley Chairman Roger Lewis, as well as jointly funding research with the BPF, CBI & RICS to highlight problems and help formulate solutions.
On 16 May, John Slaughter, John Stewart and I gave evidence to the DCLG House of Commons Select Committee, which is holding an enquiry into the PGS. We concentrated on the practical implications of the Treasury’s proposals.
Government Review of Housing and Regeneration
On 19 April the ODPM announced a review of housing and regeneration. The review is addressing a number of key questions about the delivery of affordable housing and regeneration projects, although the central focus is a proposal to merge the Housing Corporation and English Partnerships.
HBF’s response addressed the questions set out in the press announcement of the review, supporting the merger of the two government bodies. However, we recognised the private sector’s importance in delivery and the need for market responsive models of provision to be adopted. We also reiterated our previous suggestion that the definition of affordable housing should encompass all types of subsidised housing, including low-cost market housing, and that any new body should recognise the role of the private sector in the provision of affordable housing and regeneration.
PPS3: New Timetable
DCLG officials have outlined to HBF staff their proposals for the publication and integration of the new PPS3, Planning for Housing.
The new statement is due before the end of July, but the accompanying guidance will only be rolled out over the next two years. The PPS will, it is understood, be accompanied solely by a document setting out transitional arrangements, giving guidance on how local authorities should proceed with their local development documents taking account of PPS3.
This prolonged timetable is clearly disappointing and of considerable concern, given that it is likely to result in a slower change in approach to planning for housing in many areas. The transitional arrangements will need to be very clear and strongly enforced if we are to avoid local authorities making unilateral decisions about acceptable policy formulation. Given our current experience of newly emerging policies and practice, government offices around the country appear to have little appetite for intervention.
However on the positive side, the two-year roll out gives the industry, through HBF, a chance to influence the practice guides on issues such as housing mix, housing market assessments and, critically, the delivery of affordable housing. DCLG have indicated that housing policy rather than planning policy is the issue at stake. However, the government’s desire for closer housing and planning co-operation means this delineation of responsibility may be an academic division.
Current industry issues
Thames Basin Heaths Special Protection Area (SPA)
HBF’s successful lobbying on this major issue has achieved widespread media coverage and a recognition from Government that a lifting of the current planning freeze is necessary.
The need for a greater evidence base has been partly addressed by HBF-commissioned research into a longer-term mitigation strategy. I continue to attach high priority to the resolution of this issue – not least because of its potential to set an unwelcome precedent for the future.
Home information packs
We met the Association of Home Information Pack Providers on 23 May and will soon be providing a briefing note to members on the current position.
Innovate for Homes
The first round of submissions has been vetted and the successful candidates will make a presentation to the Developers’ Panel early next month. Details will be made available to all our technical contacts.
HBF meeting with Angela Smith
On 25 May Dave Mitchell and I met DCLG Parliamentary Under-Secretary of State Angela Smith and Anne Hemming Head of Buildings. The main purpose of the meeting was to introduce the minister to the HBF and to explore possible ways the industry could be more proactive in its approach to regulation.
Building Regulations Part L
The Part L software is now available, but there is still no word on the Accredited Details.
Water Conservation
The DCLG and Defra are planning to issue a consultation document by the end of July for implementation early next year. There is no news yet on whether this will be a building regulation through the DCLG, or a water regulation through Defra.
HBF initiatives
Customer Satisfaction
We have now provided participating companies with full results at operating company level, and I have sent out copies of HBF’s Customer Service Code of Conduct to all HBF members asking them to confirm their support for the Code. We will be publishing the next set of survey results in spring 2007. In future, participants will receive operating company results direct from NHBC on a regular basis.
We will be meeting the OFT in late June to discuss our strategy and hear their feedback on the Survey, Code and our work on Unfair Terms in Consumer Contracts.
Opinion Poll
HBF’s opinion poll on support for new homes, commissioned from YouGov, received a positive response from Housing Minister Yvette Cooper. In a press release from the ODPM, she reaffirmed the Government’s commitment to solving the affordability crisis through increased house building.
Once again, please do not hesitate to contact me or any member of my senior management team if you have further ideas, feedback or questions.
Yours sincerely
Stewart Baseley
Executive Chairman