The Government must do more for affordable housing

12th September, 2013 12:26 pm


Join LabourList and John Slaughter for a free breakfast on Monday 23rd September at Labour Conference to debate housing issues: Will Labour’s plan meet our housing needs? See you at Brighton Mercure, Coast View Room 1 at 8.30am! RSVP to [email protected]


No type of housing is left untouched by the enormity of the housing crisis. We need to boost housing supply across the board, from properties for first time buyers to specialist retirement housing stock, and from social rented flats to open market sale through to private rented builds.  The key to making housing affordable for everyone is to address housing shortages in every part of the sector.

If we don’t take action, housing will become even more unaffordable.  We need to build at least 240,000 homes a year to keep up with demand and this does not take account of the historic under-supply of homes over many years.  The Coalition Government has given the housing industry unprecedented attention in the last 2 years.  However, there remains a need for a fully comprehensive strategy on housing.  Government must develop a strategic policy framework for the housing sector, examining how to bring in more investment into the housing sector; and how to create a business climate which will encourage such investment.

The major long term constraint on delivery has been the planning system.  Over the last 20 years , the planning system has constrained supply.  In 2004, the Barker Review concluded that the planning system was not fit for purpose, and this led to a programme of reforms under the Labour Government.  The current Government has undertaken further reforms, including the NPPF.

The planning system together with regulation acts as a barrier to entry in the private sector.  Dealing effectively with both the uncertainty created by the planning system and with current levels and complexities of regulation is a challenge for all house builders but it is particularly difficult for smaller businesses.  As a result, over the last 20 or so years, there has been a major reduction in the number of smaller companies in housebuilding and there have been few significant new entrants into the market.  As result of the financial crisis the number of small and medium sized firms has declined yet further.

We need to tackle the conditions that are hampering smaller firms and new entry as responding effectively to the housing crisis requires a multitude of businesses, from the small family builder to the multinational company.  The planning reforms introduced should be sustained and continued efforts made to deregulate the housing sector.  Small builders simply do not have the capacity to tackle the burden of regulation over time as things stand.

As mentioned earlier, tackling the housing crisis will mean boosting the provision of all forms of tenure, including the private rented sector.  More must be done to attract institutional investment to the sector and make it a more attractive prospect for potential tenants.  In terms of social rented or affordable homes, prudent measures to raise the borrowing headroom for local authorities to build homes should be supported.  Councils have estimated they could build up to 60,000 additional new homes over the next 5 years if they were allowed to invest in housing against normal borrowing guidelines.  We should also look to encourage the emerging interest of councils and other bodies to invest pension fund assets in housing.  The roots of today’s problems in the housing market are multi faceted and demand a multi faceted policy response from Government.  In order to make housing more affordable for all the Government must support and encourage expansion of all forms of tenure and free up the private sector to build those homes.

The solution should never be a zero sum game.  Solutions to the housing crisis must work for all parties and be complementary to each other.  The housing ladder must also be taken as a whole.  There has been a lot of focus on first time buyers for example.  But dysfunction at any point in the housing market has a knock effect all the way up and down the housing ladder.  The Government must have detailed policies for all parts of the housing sector including encouraging the supply of housing for elderly people – providing certainty and assurance to businesses and investors that support schemes are in place and there is a clear direction of travel.  Government must lay out the policy roadmap for the housing industry and then do all it can to create a business friendly environment for the industry to build the homes Britain needs.


  • News More free votes ahead? Labour MPs put pressure on Greenwood over Heathrow

    More free votes ahead? Labour MPs put pressure on Greenwood over Heathrow

    David Cameron is reportedly within days of making a decision on airport expansion, with many expecting him to support a a third runway at Heathrow. This could cause a headache for the Tories, with Boris Johnson, Zac Goldsmith and several Cabinet ministers all opposed to expanding Heathrow’s capacity. However, it could spell trouble for Labour too: Harriet Harman backed the Heathrow expansion recommended by the Davies Report in July, but the party are now committed to examining the evidence again. […]

    Read more →
  • Comment Featured A free vote was always the best Corbyn could have hoped for

    A free vote was always the best Corbyn could have hoped for

    There’s a great Smiths track called ‘I Started Something I Couldn’t Finish’. Actually, I think all Smiths and Morrissey tracks are great, but that’s a column for another website. That phrase sums up the approach taken by Jeremy Corbyn to the Syria vote. Starting an unnecessary fight and then having to climb down. I don’t know if it is Jeremy himself strategising, or persons unidentified in his team, but they are progressively squandering the immense political capital that his big […]

    Read more →
  • Europe Featured News Alan Johnson to promise distinct Labour EU campaign

    Alan Johnson to promise distinct Labour EU campaign

    Alan Johnson will today launch the Labour Party’s official campaign to stay in the European Union, promising a distinct campaign that focuses on jobs, workers’ rights and national security. “The first duty of any government is to keep our country safe and I firmly believe that leaving the EU would fail that test,” the former Home Secretary will say at the launch in Birmingham. “From the European Arrest Warrant to cross-border data sharing on terrorists, the speed of our response […]

    Read more →
  • Comment Featured Labour MPs give Corbyn a “lively” reception after Syria position decided

    Labour MPs give Corbyn a “lively” reception after Syria position decided

    Meetings of the Parliamentary Labour Party are now never unremarkable. This evening’s saw one of the biggest gatherings of lobby journalists outside Committee Room 14 at 6pm on a Monday in a very long time. Just two and a half hours after the Shadow Cabinet met to decide Labour’s position on Syria, leader Jeremy Corbyn and Shadow Foreign Secretary Hilary Benn stood to address Labour MPs and peers about the outcome. It was, apparently, a bizarre scene. The two appeared […]

    Read more →
  • Comment Europe Featured Leaving the EU would put Britain’s economic security under risk

    Leaving the EU would put Britain’s economic security under risk

    Terrorists bring death and destruction to the streets of Paris… Europe faces its biggest humanitarian crisis since the Second World War as thousands of refugees flee conflict in Africa and the Middle East… world leaders gather in Paris at the UN climate change conference to find solutions to the looming global climate crisis… These are some of the biggest global challenges facing us today, challenges that require urgent action, challenges that can only be solved at international level, in cooperation […]

    Read more →
Share with your friends