Economic Development
How can developers use data to support the delivery of affordable housing?
Economic Development | Blog
The planning sector has long needed reform, and many within it are looking forward to the changes the new Labour government hopes to implement.
The King’s Speech in July highlighted the critical need to urgently increase housing provision, proposing a review of the green belt to unlock more land for development, plus the addition of 300 new planners to address the current skills shortage in the sector.
The ‘Proposed reforms to the National Planning Policy Framework and other changes to the planning system’ currently being consulted on by the new government states how the new government aims to deliver the biggest increase in social and affordable housebuilding in a generation.
Although the reintroduction of mandatory housing targets to incentivise local planning authorities to accept more applications is a positive step, it must be underpinned by a clear, evidence-based strategy that addresses the specific needs of individual locations. Without this, the initiative could quickly fall apart at the seams, particularly when it comes to solving the affordable housing crisis.
Why is there a lack of social housing?
Recent research indicates that social housing in the North of England is projected to decrease by 30% by 2040, compared to the South of England.
Prominent voices, including councils and high-profile politicians such as figures like Andy Burnham, have attributed the Right to Buy scheme as a major factor in this sharp decrease. The scheme disproportionately impacts the North, where homes are more affordable, prompting calls for the scheme to be scrapped entirely.
When considered alongside the deterioration and age of the remaining social housing, and with cash-strapped local authorities unable to replace the lost homes, the scale of the deficit is clear.
Can a one-size-fits-all approach to housebuilding solve England’s shortage?
The target of building 1.5 million homes over the next five years is ambitious, and an evidence-based approach is crucial to achieving it.
Data shows the diverse needs across different regions of England, highlighting the importance of tailored housing solutions to create the successful communities of tomorrow. For example, projections indicate that Leeds could lose over 11,000 social homes by 2040, making affordable housing a critical focus for the area.
Meanwhile, in the South, Milton Keynes is predicted to see its older population increase by 43% by 2040, the equivalent of approximately 58,000 additional people. Therefore, developers must be aware of, and prioritise, specialist accommodation for this demographic when preparing their applications.
This evidence-led approach will not only ensure that the country gets the right homes in the right regions, but it will also help streamline the planning process, benefiting both developers and communities.
How can developers support the delivery of more affordable housing?
To gain a competitive edge, developers should demonstrate the specific need for their proposed housing projects and highlight the benefits they may bring in terms of social housing. By meeting, or even exceeding, the minimum affordable contribution required, developers can demonstrate understanding to the local authority and facilitate a trusted partnership.
As conversations around controversial areas, such as green belt development, intensify, it is vital that developers, councils and other stakeholders utilise a data-led approach. This ensures that the new housing aligns with public needs, and meets the new government targets.
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