| The government's white paper on housing proposes a massive shake-up – and basing everything on profit... |
Homes, not profits
WORKERS, DEC 2005 ISSUE
The government is proposing to change the way we plan for new housing, and in the summer published draft proposals in a consultation paper, Planning for Housing Provision. This sets out how it intends to take forward economist Kate Barker's recommendations to increase housing supply and affordability by making planning more responsive to the market and housing demand.
Photo: Workers
It marks a massive shift in policy. House prices would determine the number of new homes to be built in an area. Local planning authorities would carry out land availability studies, which would include greenfield as well as previously developed, brownfield, sites. In high-growth areas, developers would be able to develop any site within the five-year land supply. Crucially, the government would no longer allow phasing to ensure that urban brownfield sites are developed before greenfield sites.
These proposals would increase house building in areas where development pressures on the countryside are greatest. Run-down areas in need of regeneration would suffer further blight since developers would have more choice over where they develop and choosing greenfield sites is the easy option.
But building more homes for sale would not address the acute lack of affordable housing in many areas. Barker's own analysis showed that increasing supply would only marginally reduce the rate of house price inflation, and would not bring down house prices.
The government wants to build as many new houses as developers will provide at a profit. It will overrule any objections from councils or local people. It will enforce its draconian Planning and Compulsory Purchase Act (2004), which orders every community in England to surrender to the government all control over its physical development. Developers would rule.
Developers always want to build as densely as possible. The average density of new housing increased to 39 dwellings per hectare (2.47 acres) in 2004 from 27 in 2002, cramming ever more homes into smaller areas.
Planning by housing prices or on the basis of crude demand contradicts the plan-led approach the government claims to support, whereby policies are drawn up in consultation with the local community and seek to integrate environmental, social and economic aims. The market approach will not deliver the goods.
Affordable
We need to build more state-subsidised, affordable housing and greater use of brownfield land in building new homes. A lasting solution to the housing problem depends on reducing regional economic disparities and fostering an urban renaissance. We need stronger policies for urban regeneration, to make our cities better places to live and work.
We need stronger policies to prevent the South East of England from sucking in ever more jobs and households, and leaving other regions further and further behind. We do not need large-scale immigration from other countries into London and the South East, contrary to Mayor Livingstone's claims. Some of the eight million currently economically inactive in this country could do the work that needs doing, at decent wages.
