The planning bill housebuilding overhaul: Industry reaction | Mortgage Strategy

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The planning bill set out by the government in today’s Queen’s Speech is on paper the biggest overhaul since the end of the Second World War as it bids to boost housebuilding loosen controls in England.

Housing secretary Robert Jenrick wants the country to build 300,000 new homes a year – up from the 192,725 homes it built last year. And he wants to cut back on the five years It takes a typical housing development to be passed fit for development.

To do so he plans to sweep away many current planning restrictions to speed construction in parts of the country earmarked as growth areas.

The bill will also encourage more fleet-footed smaller developers, and move from a document-based planning system to a digital one.

It will replace the complex Section 106 system, with an infrastructure levy. All of which, the government says, should speed up the building of homes, hospitals, schools, shops and offices.

Among the 30 bills announced today, others also affect housing policy.

A Building Safety Bill, appoint a building safety regulator and initiate financing for cladding replacement, a Leasehold Reform Bill will look to ban ground rent for leasehold flat owners.

The government will also court ideas to ‘Enhance the rights of those who rent’ through the issuing of a white paper rather than a bill.

Industry reaction to such wide-ranging plans was varied.

Affordable housebuilder Rentplus says there is an urgent need to unlock more supply as schemes such as the mortgage scheme and the stamp duty holiday push up prices.

Rentplus chief executive Steve Collins says: “Currently, out of date local plans mean councils are not accepting new applications for privately-funded affordable housing schemes. We welcome the requirement for all local authorities to have up to date local plans.

“In order to tackle the affordability gap, it is imperative that local authorities capitalise on the opportunity to ensure more affordable housing tenures are included, including those funded privately.

“These schemes continue to play a significant role in boosting the overall number of homes particularly for first-time buyers on lower incomes, helping reduce demand for social housing by removing aspirant homeowners from waiting lists.

“Increasing investment from the private sector in affordable housing will be a key means by which the government can deliver on its promise to help more people to own their home.”

North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “The government seems to have finally recognised what we have noticed for many years – that is, the strong connection between homeownership and rental with political allegiance.

“The government seems to want to help both groups; on the one hand, advocating reform of the planning system which would speed up delivery of new homes, while on the other, helping tenants to avoid no-fault evictions and benefit from lifetime deposits, making moves between properties less expensive.”

Leaf adds: “We still need to see the delivery of affordable homes for rent and for sale in those areas where most people want to live, as well as protections for those who choose longer-term rental. Such measures can only benefit longer-term economic recovery.”

The National Residential Landlords Association chief executive Ben Beadle says: “What is proposed amounts to some of the biggest changes in the private rented sector for over 30 years. We urge the government and all others in the sector to use the time they now have to ensure that the reforms are fair and workable for both tenants and landlords.

“This must include comprehensive grounds upon which landlords can legitimately repossess properties, the development of a new tenant-landlord conciliation service to help sustain tenancies wherever possible and court reform to ensure possession cases are dealt with much quicker than the year or more currently being taken.

“Lifetime deposits for tenants provide an opportunity to reduce the upfront cost of renting, but they need to work for all concerned.”

Propertymark policy and campaigns manager Timothy Douglas adds: “With the focus of the new package on lifetime deposits, landlord redress and greater enforcement, the UK government must look at ensuring that a system that would allow deposits to be passported can only take place if there is a bridging loan, with the UK government as the guarantor, in order to ensure the remaining part of the deposit is covered should the tenant default.

“Additionally, the UK government must prevent ‘double jeopardy’ and only extend redress membership to properties that are fully managed.”


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