Member Briefing - Communities Plan

21 April, 2003

In last July's three-year spending review the Office of the Deputy Prime Minister was granted an extra £1.1bn to tackle Britain's housing problems. ‘Sustainable communities: building for the future’ is John Prescott's long-awaited statement on how he wants to spend the money available to him.

In last July's three-year spending review the Office of the Deputy Prime Minister was granted an extra 1.1bn to tackle Britain's housing problems. Sustainable communities: building for the future is John Prescott's long-awaited statement on how he wants to spend the money available to him. It seeks to address the overheated property market in the southeast through new ways of building affordable homes. It also attempts to reverse the abandonment of northern cities where there is low demand and abandonment.

The Communities Plan document attempts to make a step change in Government approach; a strengthened determination to reverse, over the next 15-20 years, some damaging, deep-seated trends.

It is part of the Governments wider drive to raise the In last July's three-year spending review the Office of the Deputy Prime Minister was granted an extra 1.1bn to tackle Britain's housing problems. Sustainable communities: building for the future is John Prescott's long-awaited statement on how he wants to spend the money available to him. It seeks to address the overheated property market in the southeast through new ways of building affordable homes. It also attempts to reverse the abandonment of northern cities where there is a surplus of homes.

Mr Prescott has repeatedly stated that he wants to see a step change in the quality and the quantity of new homes built. The Government has acknowledged that if the extra cash is used in the same way as it has been up to now the step change will not happen. Since 1997 the resources for new social housing have increased but the number of homes built has fallen from 35,000 to 25,000. Every time a social home is added to the housing stock in the last few years, at least two have been sold under Right to Buy. Since July Mr Prescott and his team have been devising new ways of making the extra money go much further. The plan also needed the backing of other spending departments across Whitehall.

This follow up announcement is continued good news for the industry and so the Governments statement of intent to tackle Britains critical shortage of housing should be welcomed.

The Government has acknowledged the scale of Britains housing shortage and is committed to tackle it. The Government has identified that there will be 155,00 new households are projected to form each year while net housing stock is currently growing by 120,000 annually. In the Deputy Prime Ministers plan it specifically states that to tackle the housing shortage, especially in London and the wider South East conditions would be created in which private housebuilders will build more homes of the right type in the right places. This highlights realisation on the Governments part that most housebuilding is carried out by private developers and without public subsidy.

Exit and employer surveys suggest that one in five key workers who leave their jobs do so for housing-related reasons.

The key points in the plan are listed below. All figures are totals for 2003/04 to 2005/06.

Sustainable communities

A total of 22bn to improve housing and communities including over 5bn to regenerate deprived areas.

A new regional approach to housing policy.

350m to speed up planning.

Step change in housing supply

5bn for more affordable homes, including:

Funding for key worker housing to be more than trebled to 1bn.

Support for people who wish to move into home ownership.

New powers to councils in the southeast to allow them compulsorily lease up to 70,000 empty homes.

New focus on helping people into home ownership.

New growth areas

446m for Thames Gateway with new development agencies.

Cabinet committee chaired by Prime Minister to plan for development of the Gateway.

164m for three other growth areas.

Decent homes

2.8bn to bring council homes up to a decent standard.

500m rescue package for nine towns and cities in the north and Midlands to fund the demolition and rebuilding of blighted areas.

260m to tackle homelessness.

Action to tackle bad landlords.

Countryside and local environment

Guarantee to protect green belt.

201m to improve local environment parks and public spaces.

Over 5,000 affordable homes in villages.

In addition:

Regional centres of excellence are being set up in all English regions to improve skills and training in urban areas.

Increased investment in affordable housing. Government have already announced 1,286m for the provision of affordable housing by the Housing Corporation. An additional 197m for 2003-04 has been detailed. 100m of the extra money for the Housing Corporations Challenge Fund for fast track and innovative new-build affordable housing.

1.1bn to be shared between London, South East and East of England in 2004-05 and 2005-06, to boost the supply of affordable housing especially in the growth areas.

Resources to other regions will grow in line with inflation in 2004-05 and 2005-06.

A total of 521m for English Partnerships (EP) over next three years will support EPs new role in identifying and assembling sites for housing development.

In developing new communities and regenerating existing ones Government wishes to see care taken not to place developments in unsustainable locations in terms of flood risk. No development will take place on functional flood plains where water must be held and flow freely in times of flood. Development proposals elsewhere will be subject to flood-risk assessment in consultation with the Environment Agency.

Government wish to reduce the time taken for negotiations over planning obligations and to optimise outcomes for both local authorities and developers. One possibility is to encourage an open book approach, which works well where developers and local authorities find this in their mutual interest. HBF will vigorously oppose any efforts to force developers into this method of negotiation.

Naturally, the HBF will continue to work closely with Government to ensure that John Prescotts aspirations are turned into policies.