The Housing Bill plans to extend the Right to Buy levels of discount to housing association tenants and take forward the Right to Build to help those wishing to build their own home.
The Bill also hopes to simplify and speed up the neighbourhood planning system and support communities that seek to meet local housing and other development needs through neighbourhood planning.
The planned changes have created a stir amongst the market and industry experts spoke to B&C about their reaction to the impact these policies may have.
Managing Director of Commercial Mortgages at Shawbrook Bank, Stephen Johnson, welcomed any move to ease the restricted housing supply but thought numbers alone would not fill the gap and that the private rental sector remained the driving force behind the property market.
“Among our own clients we are seeing moves to meet the growing needs of the private rental sector, often through refurbishment, expanding existing properties, or converting properties into houses of multiple occupancy,” said Stephen.
“We see the move to extend the Right to Buy scheme as part of a wider decline in the supply of social housing available to tenants.
“By encouraging tenants of Housing Associations to buy their homes, the government is increasing the reliance of remaining social tenants on availability within the private rental sector.
“Demand for the private rental sector is therefore the catalyst for the growth of the housing market moving forward.”
Meanwhile, Managing Director of Mortgages and Commercial Lending at Aldermore, Charles Haresnape, said that although headlines focused on the Right to Buy element, he saw the proposals around changing planning laws as key.
“New rules that aim to simplify and speed up the planning system are necessary and the announcement to create a statutory register for brownfield land could make the process of identifying suitable land quicker too,” said Charles.
“Housing growth is vital to the economy, but it is important to recognise that if we are able to generate a supply of hundreds of thousands of homes, we need to ensure we review every element of the system from planning to finance for smaller house builders to make sure these targets can ultimately be achieved.”
However, Managing Director of estate agents Stirling Ackroyd, Andrew Bridges, believed there was little sign that planning applications would be made easier.
“Our research shows one in three potential homes are still rejected by the capital’s borough councils,” said Andrew.
“A global city can’t be grown as a bonsai tree. Unless it is allowed to physically expand, either outwards or upwards, London’s economic growth will start to stutter.
“Concrete ideas now need to flesh out the paper cathedral of devolution. And it should start right here in the capital of the United Kingdom.
“Instead of rejecting homes and offices, local government should be actively encouraging new space and new opportunities for Londoners.”
But New Build Director at Mortgage Advice Bureau, Andy Frankish, said the pledge to take forward Right to Build was far more encouraging for those who wanted to see structural problems with housing supply addressed.
“MAB has long suggested that custom build can provide the solution to a lack of housing stock in Britain, as it mutually benefits builders, lenders and consumers alike and will stimulate development,” said Andy.
“It is good to see that policymakers are listening to the voice of industry, and we look forward to the scheme’s implementation.”
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