Government must focus on land supply to meet Green Paper aspirations

23 July, 2007

Responding to today’s Housing Green Paper, Stewart Baseley Executive Chairman of the Home Builders Federation said:

“Fundamental to delivery of all the Governments objectives is the provision of sufficient land with implementable planning permissions. Only this will enable us to build the full range of extra homes the country needs. This Green Paper is a step in the right direction towards meeting housing demand and easing affordability.

“Increasing the annual homes target to 240,000 is a huge challenge that we must meet, if we are to provide sufficient new homes for those unable to step onto the housing ladder.

“We welcome the new guidance on strategic housing land availability assessments. They are a vital tool in helping local councils identify the land needed for new homes.

“We recognise the incentives that will flow through the Housing Planning Delivery Grant. We need confirmation of the details and totals to ensure the Grant is a serious incentive for authorities to deliver sufficient land for new homes.

“On zero-carbon homes the industry needs a realistic, deliverable national framework. We welcome The ‘Building a Greener Future Policy’ statement that local authorities should not set their own ad-hoc zero carbon timetable through the planning system.

“The private sector already makes a significant contribution to the delivery of affordable homes. What we need most of all is confidence that we can go further, faster in speeding up the planning process to deliver the ambitious housing growth targets and help make housing more affordable. Adequate land supply is critical if we are to get anywhere near meeting the government’s ambitious housing targets.”

Click here to view the HBF Green Paper Briefing (Members Only)

- Ends -

Additional briefing - Key facts and figures on housing supply

Analysis of the Government’s own figures on land supply has shown that between 1997 and 2003, the amount of land being brought forward for development fell by 7%. The main driver for this has been a drastic fall in the supply of greenfield land. During this period, there was a 36% fall in greenfield land being developed, and a corresponding 43% rise in brownfield land.

In 2006, private and public housing completions totalled 160,234. However, Government figures released in March 2007 show that new households are being formed at a rate of 223,000 per year, leaving a current shortfall in housing supply of over 60,000 homes.

HBF’s own research has shown that Local authorities take on average 248 days – nearly nine months – to issue planning approval after the submission of an application:

http://www.hbf.co.uk/index.php?id=1591&tx_ttnews[pS]=1162339200&tx_ttnews[pL]=2591999&tx_ttnews[arc]=1&tx_ttnews[tt_news]=10319&tx_ttnews[backPid]=1538&cHash=a20c492a60

Research conducted by the HBF from its major members shows that of the land held which has fully implementable planning permission, 97% has builders on site within three months of that permission being granted.

Recent research conducted by the Council of Mortgage Lenders showed that whilst home ownership is currently 70%, 84% of adults aspire to own their own home. This contrasts with figures from the Joseph Rowntree foundation which found that the ratio of house prices to earnings has risen from 2.7 to 1 in 1996, to 5.4 to 1 in 2005.

For first-time buyers, the situation is particularly bleak. Figures from the RICS have shown that the average first-time buyer couple will now have to save up to the equivalent of 82 per cent of joint income to build up the amount of savings needed to pay for their home, deposit and stamp duty, compared to 25 per cent in 1996.

Notes for editors

1. The Home Builders Federation (HBF) is the principal trade federation for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for over 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk

For all media information, please contact:

David Wilson

020 7421 6140

020 7404 5344

david.wilson@portlandpr.co.uk