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Govt. building schemes ‘too inflexible’ – report

Julia Rampen
Written By:
Julia Rampen
Posted:
Updated:
09/03/2017

Government schemes to increase the supply of housing are too inflexible to meet regional needs, a think tank has argued

Centre for Cities argued schemes such as Get Britain Building, the New Homes Bonus and changes to planning regulations were insufficient to meet the demand for affordable homes in successful cities such as London and Oxford.

The report said policies seeking to kick-start building were not prioritising places where development would happen quickly and called for the New Homes Bonus to be increased in areas of high demand: “Discussions about housing as a boost to the economy rarely consider the variation in housing markets and needs across the UK.

“For some places the overwhelming issue is new housing, while in others it is about improving the quality of the existing stock.”

The lack of flexibility within the national housing strategy had created “perverse incentives” in some areas, it added, as local authorities tried to take advantage of the New Homes Bonus even if there was little benefit to the local economy.

The cities of London, Oxford, Cambridge and Brighton required the highest above average income in order to afford a mortgage on the average house, according to the report, while Sunderland, Liverpool and Bolton were the most affordable.

Government schemes: a breakdown

Get Britain Building

Aim: To raise funds to unlock locally-backed stalled sites

Achievements: Three sites have restarted, 105 more have been shortlisted

Centre for Cities view: Location of sites does not necessarily correlate with affordability

New Homes Bonus

Aim: To encourage local councils to increase the number of usable homes

Achievements: Funding is expected to reach £1.3bn by the end of 2014

Centre for Cities view: A step in the right direction, but blanket approach to funding financially penalises cities with weaker demand for housing. The bonus should be increased where it is needed most.

National Planning Policy Framework

Aim: To speed up the planning system and therefore development

Achievements: Legislation is ongoing

Centre for Cities view: Cities should have more independence over whether or not to build on the Greenbelt

centre-for-cities-house-price-growth


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