Two Speeches and a Consultation: MHCLG sets out its stall on Planning & Affordable Housing
Wednesday 20 November was a big day for both planning and the affordable housing sector.
In just one day, we saw:
- Matthew Pennycook giving evidence to the MHCLG Select Committee on the Government's planning reform agenda and the 1.5 million homes target;
- Angela Rayner addressing the Social Housing Annual Conference; and
- The launch of a new consultation on extensive further changes to the Right to Buy
Between them, these three events have certainly given us a lot to think about.
In fact, there is probably more to discuss than I can do justice to in a single post. Nevertheless, I am going to try….
Key Points from the MHCLG Select Committee
At the time of writing, the transcript of Matthew Pennycook's oral evidence isn't available - but the video of the session can be found here.
It was certainly an informative session!
The key points, at least from my perspective, are summarised below:
- The 1.5 million homes target is a whole parliament target - not an annualised one.
- Meeting it will, however, be “more difficult than we expected in opposition” and will depend on a large increase in delivery towards the end of the parliament.
- MHCLG is working on increasing both construction and planning capacity in the sector and is very aware of the need to oversupply planning permssions if they are to have a hope of hitting the 1.5 million target.
- In terms of upcoming reforms:
- The response to the NPPF consultation is on track to be published before the end of the year.
- A consultation on the content of National Development Plan Policies is expected next year.
- However, the intention is to use them more to “essentially tidy the system up” than to drastically change policy approaches - the policy direction is being set through the proposed NPPF changes (see above).
- The Planning and Infrastructure Bill is also expecting next year.
- MHCLG is committed to rolling out universal strategic planning by the end of the parliament. The current model for achieving this is centred on joint spatial strategies.
- This government is on a drive to increase local plan coverage as well as housing delivery and is likely to be far more interventionist in acheiving these goals. Whilst the Minister's comments were primarily made in the context of calling-in decisions and recovering appeals, the NPPF consultation did also include proposals to make it easier for the government in intervene in local plan making…. So watch this space.
- LURA proposals on digital reform are likely to be taken forward
Key Points from the SHAC Speech
The Secretary of State's speech at the Affordable Housing Conference can be accessed here and is worth reading in full… if only for the final few paragraphs (set out below).
The key take-aways, however, can be summarised as follows:
- The Government will not extend Right to Buy to housing association homes.
- Further reforms to Right to Buy are coming (see next section).
- The Secretary of State is seeking more investment into the affordable housing sector during next year’s spending review.
- The government wants to work in partnership with local councils, housing associations and RPs to improve standards and increase supply; but
- Is also issuing a direct and immediate call to action.
In the final section of the speech, the Secretary of State issues the following rallying cry:
“I need you to restart your development programmes. To make the most of the new funding and flexibilities that we’re offering. To be ambitious with your local plans and regeneration partnerships. To support more people in acute housing need. And to get those children out of cramped and insecure temporary accommodation.”
Whilst everyone involved in house-building desperately need RPs and Housing Associations to re-enter the market, and quickly, from discussions I have had recently, this may be easier said than done.
Key Points from the Right to Buy Consultation
And finally, on Wednesday the government also launched a further consultation on changes to Right to Buy.
The consultation closes on 15 January 2025 and can be accessed here.
Now, I am not really a social housing lawyer*, so the following is largely lifted from the consultation, but at a headline level the government is proposing:
- Eligibility: increasing the eligibility requirement (currently 3 years as a secure tenant) to support councils to rebuild their housing stock and to better ensure that it is tenants who have lived in, and paid rent on, their social homes for many years that are able to own their home through the scheme.
- Discounts as a percentage of the property value: amending the current percentage discounts to align better with the new maximum cash discounts and extending the same rules should apply to houses and flats.
- Exemptions: exploring whether the current exemptions to the scheme are fit for purpose and whether new build homes should be exempt from the Right to Buy, for a given period, to better incentivise councils to invest in new stock. As well as seeking views on how to protect council investment in retrofitting and improving homes to a high standard.
- Restrictions on properties after sale: Exploring whether the time period in which the council has the right to ask for repayment of all or part of the discount received from a property when it is sold or let should be increased from 5 to 10 years.
- Requirements around the replacement of homes sold under the Right to Buy: Seeking views on the benefits of replacement homes being for Social Rent; whether replacements should be, as far as possible, of the same size and in the same area; and whether there should be a target to replace all future Right to Buy sales on a one-for-one basis.
- Simplification of the receipts regime: Exploring how the current system, where the capital receipt generated from the sale of a home, is divided into 6 parts (after funding the discount) can be simplified and strengthened to support the replacement of homes.
This consultation follows hot on the heels of secondary legislation reducing the level of discounts for Right to Buy properties, which came into effect on 21 November 2024** and is definitely worth responding to.
*and I am running out of time before the girl's Hey Duggee marathon ends….
** which can be found here
So today, I am asking you to work with me. In partnership. To deliver on our shared ambitions. And you know what a difference we can make.
I need you to restart your development programmes. To make the most of the new funding and flexibilities that we’re offering. To be ambitious with your local plans and regeneration partnerships. To support more people in acute housing need. And to get those children out of cramped and insecure temporary accommodation.
I need you to step up. And I know it’s difficult. And I want to help. I waited eight years for this opportunity to serve and to give back, so tell me what more I can do to help you. And I promise that I will work with you to deliver.”
Key Contact
