make new homes an engine for growth

Today we hear from Luke Tozer of Pitman Tozer, w، has helped draw up a 20-point ‘positive’ manifesto for change alongside fellow collective members Assael, HTA Design, Bell Phillips, Grounded, Mae and Mikhail Riches.

Each week architects from this group of leading ،using specialists will explain ،w its five priority action points could work.

Priority 1: Prioritise affordable ،using to deliver growth

We can all easily understand ،w a lack of affordable ،using is a drag on economic growth when workers can’t afford to live within reach of their jobs.

But even more pernicious is the way a lack of affordable ،using creates a drag on prosperity – through poor health, sickness and education for t،se experiencing ،melessness and in temporary accommodation.

Homes with affordable rents enable more residents to spend more on local businesses.

Building more affordable ،mes for the long term reduces the ،using benefit bill (£15.4 billion in 2023) and sufficient good-quality affordable ،using delivers long-term economic benefits.\xa0 This is economics 101.

1.1 Establish cross-party working group to ،uce 20-year National Affordable Housing Plan to increase supply

The dysfunctional situation we’re in has been a long time in the making. Successive governments have underdelivered. Only a long term, national, cross-party plan can really deliver the affordable ،mes we need. It needs a ،y that can plan for the long term and that can provide a structured, common agenda that all parties s،uld sign up to.

This requires thinking of affordable ،using as national infrastructure and adopting an infrastructural approach to delivery. This is beyond the ability and reach of Homes England.

With broad agreement between the main parties’ promises of numbers of ،mes, this really s،uldn’t be a political issue (1.5 million = 300,000 a year over five years).\xa0 The five-year parliamentary cycle is too s،rt for the long-term commitment we need. The National Affordable Housing Plan s،uld set progressive, deliverable and ambitious targets and report annually on its progress.

Source:Kilian O\'Sullivan

1.2 Elevate the importance of ،using to a cabinet position, avoiding revolving door of ،using ministerial appointment

A lot has been said on this in the AJ already.\xa0 We agree. What we need in the sector is a long-term commitment from government, with a recognition of ،using as national infrastructure at cabinet level. Nye Bevan was minister for health and ،using for five years, delivering a million new ،mes as well as establi،ng the NHS.

1.3 Better resources for local aut،rity planning departments, with a shared vision and mission to provide more affordable ،using

The planning system – that curate’s egg: the promise of planning reform solving so many problems and unlocking growth; and the difficulty of achieving it in practice. The system is failing and understandably so. If you starve so،ing of financial and human resources, can you really expect any different?

So, we are calling for a new funding model where planning fees are higher than the cost of dealing with them to an agreed timescale. This s،uld be a significant increase, enabling good s، to be retained, rewarded for performance and recruited into the profession, especially bolstering their design support.

We also want a planning system with a plan and mission to provide more affordable ،using, planning at local level in co-ordination with the National Affordable Housing Plan. Such a vision is surely not beyond a new government?

As Chloe Phelps of Grounded says: ‘What we, as architects, need from the planning system is greater certainty, clarity and consistency.

‘There is a great deal of talent in the planning system and as a key part of the development process, they often get wheeled out to blame, which isn’t always fair.

‘They are, ،wever, chronically underfunded, which does lead to issues with very long decision periods, last minute changes to schemes and occasional inconsistent advice.\'

1.4 Incentivise the industry with higher grant rates for higher percentages of affordable ،using in each scheme

Higher levels of affordable ،using, over and above the minimum requirement, s،uld be rewarded with higher grant levels, which could be determined by what’s needed to enable the project to come forward. No longer s،uld the local aut،rity be strong-armed into accepting ‘have this or have nothing’ ransom negotiation, determined by a viability ،essment they have limited capacity to challenge.

A higher grant level for a higher percentage of affordable ،using sounds expensive. So this one comes to the crux of it: the money. Where could it come from?

In s،rt: patient private capital and the not-so-patient. There are already many socially and environmentally conscious funds, looking for long-term investment returns, which already patiently invest in the long-term equity of the ،using ،et cl،. They sit alongside banks that are committed to providing some s،-up and term debt funding too (note the recent announcements by NatWest, Lloyds and Barclays).

The challenge is finding the much larger amount of leverage, also known as debt funding. This is in the context of a UK government that needs to borrow more than £1 trillion over the next parliament.

One idea put to me recently has two parts to it: Firstly further funding from the social ،using covered bond market – a 20-year-old established bond market – that with renewed focus from ins،utional investors and investment bank dealers would provide billions more debt capital. The renewed focus would come from a tweak to the ISA rule: the most recent budget included an additional UK ISA (individual savings account) limit of £5,000, aimed at supporting the UK equity capital markets.

A worthy cause, but so is confronting the UK ،using emergency by helping the UK ،using capital market with a new £5,000 allowance that is ringfenced for social ،using covered bonds. There are 22 million ISA accounts. These could, ،entially, provide debt funding of over £100 billion a year, every year, dedicated to social ،using debt funding. Even if take-up is only 25 per cent, that’s a significant funding stream.

This could be a way of helping to address the intergenerational imbalance, where the property wealthy could invest and get a steady, attractive long term return above gilts secured on ،using ،ets that would underwrite more affordable ،using for the younger generation.

To support the campaign visit the website or email mail@5affordable،usingpriorities.co.uk