Member Article

Updated: North East business reaction to government’s housing white paper

The government has released a housing white paper, laying out its plans to reform Britain’s housing market and boost the supply of new homes in England.

In a statement to MPs, Communities Secretary Sajid Javid referred to the housing market as ‘broken’.

To fix what has become an epidemic problem for Britain, government reforms range from councils producing up-to-date plans for housing demand to using a £3bn fund to help smaller building firms challenge major developers.

Sajid Javid commented: “Walk down your local high street today and there’s one sight you’re almost certain to see. Young people, faces pressed against the estate agent’s window, trying and failing to find a home they can afford.

“With prices continuing to sky rocket, if we don’t act now, a whole generation could be left behind. We need to do better, and that means tackling the failures at every point in the system.

“The housing market in this country is broken and the solution means building many more houses in the places that people want to live.

“We are setting out ambitious proposals to help fix the housing market so that more ordinary working people from across the country can have the security of a decent place to live.

“The only way to halt the decline in affordability and help more people onto the housing ladder is to build more homes. Let’s get Britain building.”

To read the white paper - Fixing our broken housing market - in its entirety, click here.

North East reaction

We take a look at how business leaders in the region are responding to the government’s range of reforms.

Helen Gordon, CEO of Grainger plc

“We welcome the Government’s Housing White Paper which represents a rebalancing of housing policy with a focus on stimulating housing supply, and recognises that this country needs homes to rent as well as to buy as a way of solving the housing crisis.

“Previous policy was heavily focused on home ownership but building good quality homes for rent plays an important part in increasing the number of homes in U.K.”

“The housing crisis isn’t a problem with demand, the problem has been with supply. Too little of it. Today’s Housing White Paper suggests that the Government has acknowledged this. It includes a wide range of measures aimed at stimulating development and the supply of new homes. This should ultimately ease the affordability strain and support new jobs and economic growth in local areas that need it, and we welcome it.”

Scott Martin, Managing Director of Barratt Developments North East

“We welcome the continued government focus on tackling the housing shortage and we’ll support any policies aimed at speeding up the planning system and bringing forward more land for new homes – particularly in areas of high demand.

“Housebuilders have an important role to play in building the homes the country needs and over the last five years Barratt has increased the number of homes it has built by more than 55%. But it is also vital that as the quantity increases, the quality of new homes doesn’t suffer.”

Jayne-Anne Gadhia, Chief Executive at Virgin Money

“We strongly support reforms to planning aimed at increasing housing construction in England. The government’s commitment to addressing the shortage and high cost of housing is essential to underpin the wider health of the economy, consumer confidence, productivity and social mobility.

“We are particularly keen to support the increased role of shared ownership, starter homes and custom build, which will not only contribute to supply, but also ensure that new homes meet people’s specific needs.”

Ray Minto, Director, Land and Development, GVA, Newcastle

“Whilst Government has recognised that home ownership is not for all, it still needs to introduce further incentives that encourage the industry to deliver homes of different kinds and tenures, including outright ownership, and shared ownership, and recognises the vital importance of developing a healthy rental market which offers more choice, stability and affordability to help people find new homes.”

James Hall, partner at planning and design consultancy Barton Willmore

“This White Paper has been hotly anticipated but it’s clear that political difficulties still hamper the mission set out in its title: Fixing our broken housing market.

“North East and Yorkshire Local Planning Authorities need to press on and create local plans. So far only a small proportion are in place, and very few can demonstrate a housing land supply with a sufficient buffer to meet future demand.

“The details of how housing targets will be set are yet to be seen, but it’s Barton Willmore’s view that councils should keep their ambition to tie jobs growth with meeting all housing needs.

“Government’s signalling of help for SME housebuilders is encouraging. This should support larger players, and it will come at a time when regional builders – such as Cussins, Harron and Stonebridge Homes – are refinanced and looking for land.

“There is reference within the paper to the risk of land being banked without the prospect of development. We have seen no real evidence of volume builders doing this in the north. They are working hard to deliver where they have consents, and get on site to achieve challenging targets.”

Arlen Pettitt, North East England Chamber of Commerce, policy adviser

“North East England has a very different housing market from London and the South East, with a very different set of problems to be addressed. What we need are the tools at a local level to build a housing market that helps our businesses attract the best talent and keep skilled graduates in the region.

“The Government’s Housing White Paper doesn’t go far enough to do that, and a standardised methodology for determining housing demand, based on the characteristics of an overheated housing market elsewhere in the country, risks leaving the North East’s local authorities with even less scope to act.

“Our members have told us this region needs more high quality homes of all sizes, tailored to local needs. But build these new houses must be coupled with support to help the region’s potential homeowners understand all of the options available to them.

“Our recent research with Chamber Partner members Thirteen found low awareness of schemes like Help to Buy, shared ownership and Starter Homes among the region’s students and young people – that needs to change if we want to make North East England an even better place to build a life and a career.”

What do you think? How happy are you with the reforms? What are the biggest problems facing the housing market? Let us know your thoughts in the comments section below.

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