HBF warns that Newcastle new homes moratorium could damage the City's growth prospects
A BAN on new housebuilding imposed yesterday by Newcastle City Council, could seriously weaken the City’s economic growth the House Builders Federation has warned.
The decision to impose a moratorium on any development of 10 or more homes outside designated regeneration areas, was taken in response to the region’s emerging Regional Spatial Strategy being drawn up to focus attention on tackling the City’s more deprived areas.
But the House Builders Federation is warning that the moratorium could damage the City’s growth prospects in two ways. It believes:
· The council’s assumption that limiting development outside specific regeneration areas will encourage regeneration of deprived areas is incorrect
· That the introduction of this ban whilst the pathfinder project is some years away from delivering new homes will drive developers and jobs out of the area
The moratorium appears to contradict a Government commissioned report (1) which says that restrictions on housebuilding outside designated regeneration zones can worsen the problem of housing affordability and damage the local economy.
Pierre Williams, spokesman for the House Builders Federation, said: “There’s a perception that putting the brakes on new development in specific areas helps regeneration in neighbouring zones. However, the reality is quite the opposite, as Newcastle has itself experienced.
“Newcastle is a real success story. This success has largely depended on the City’s willingness to provide the homes, lifestyles and economy that local people and increasingly outsiders, aspire to.
“But to encourage this trend, it will need to continue providing the broad mix of high-quality housing, detached, terraced and flats, that makes it attractive to homebuyers and to business.
“Far from reducing investment in deprived neighbouring areas, this type of development encourages it by transforming the prospects and hopes for the entire community.
“Large areas of Newcastle’s most deprived areas have been transformed by high quality redevelopment, not despite new housing in suburban areas, but because of it.
“Of course it makes sense to focus once more on the regeneration of deprived areas. The housebuilding industry has already demonstrated its commitment to this. But the Pathfinder project aiming where to focus redevelopment is at a very early stage and unlikely result in housing for some years.
“Why announce this ban with immediate effect when the alternative is far from decided? It will drive developers away resulting in a slow and difficult re-start once approvals for development in the pathfinder areas eventually get the go-ahead.”
Ends
Notes:
(1) Review of Housing Supply, Interim Report, Kate Barker. p37 “Correct Balance of Housing Markets”