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A number of housing bills were announced during the King’s Speech on Wednesday. Grainne Cuffe finds out what the sector thinks
Wednesday saw the official opening of parliament and the annual King’s Speech setting out the government’s legislative agenda. The speech, written by ministers and read by King Charles, is the first from the monarch under a Labour government in 14 years following its landslide victory in the general election.
Alongside the speech, 39 bills were announced, which the government plans to introduce to “take the brakes off Britain”.
Key to housing were the Planning and Infrastructure Bill, the draft Leasehold and Commonhold Reform Bill, the Renters’ Rights Bill, the English Devolution Bill, and the Hillsborough Law.
Sector figures have welcomed the announcements. However, many have warned that the government’s ambitions for social and affordable housing will only be met through the “right funding” and long-term rent certainty.
A letter to housing secretary Angela Rayner last week, signed by the National Housing Federation (NHF), the Chartered Institute of Housing (CIH) and the Local Government Association (LGA), urged her to address “years of policy uncertainty and underfunding”.
The bodies warned that Labour would miss its 1.5 million-home target unless more funding was allocated to social and affordable housing.
Below, Inside Housing sets out the views of the social housing sector following the King’s Speech.
Kate Henderson, chief executive at the National Housing Federation, said the King’s Speech sets out “some important and welcome first steps towards tackling the housing crisis and increasing the delivery of desperately needed affordable and social homes”.
She added: “We look forward to working closely with the government to ensure that a revitalised planning system delivers the number and types of affordable homes the country needs.
“We’re also pleased to see the government commit to abolishing Section 21 no-fault evictions to provide private renters with greater security and protect those on low incomes from the risk of homelessness.
“With the housing crisis affecting people right across the country, we fully support the government’s ambition of building 1.5 million new homes over the next parliament, but this will not be possible through planning reform alone and will need to be met with the right funding.
“We will continue to make the case for these changes to form part of a nationally co-ordinated and fully funded long-term plan for housing which places social housing at its core. Housing associations stand ready to support the government on this to deliver the biggest increase in social and affordable house building in a generation.”
Gavin Smart, chief executive of CIH, said: “As the new parliament returns to business, it’s good to see the King’s Speech outlining plans for legislation to address housing supply, renters’ rights and leasehold reform, underpinned by a strong commitment to devolution.
“We need to shift the dial on housing and we welcome the government’s ambition to do that.
“As always, the underpinning detail and timings will be key to understanding the opportunities and challenges for the housing sector, but we look forward to working with the new government to ensure everyone has a decent, secure and affordable place to call home.”
Fiona Fletcher-Smith, chair of the G15 and chief executive of L&Q, welcomed the housing and planning measures, “particularly on the delivery of high-quality infrastructure and housing”.
She said: “Concrete actions have long been needed to effectively address the housing crisis
“Housing associations in London, and all across the country, stand ready to partner with the government in this mission.”
Ms Fletcher-Smith added that landlords’ potential to provide “even more high-quality affordable homes” can be unlocked “without having to commit significant new funds, through legislation that guarantees long-term rent certainty, access to the Building Safety Fund, and a more efficient allocation of the Social Housing Decarbonisation Fund”.
Tracy Harrison, chief executive of the Northern Housing Consortium, said the government’s focus on housing is “good news for Northerners”.
She added: “The proposals set out in the King’s Speech to build more homes, including desperately needed social rent homes, are especially welcome.
“We know there is enough brownfield land in the North to build up to 320,000 new homes, making a significant contribution to tackling the housing crisis.
“We’re pleased to see a commitment to make things better for renters in the private sector including extending the Decent Homes Standard to the private rented sector. Local authority enforcement capacity will be critical in delivering real change.
“The North’s homes are the oldest and coldest in England, so while there were no legislative measures announced today, we welcome the government’s commitment to a warm homes programme.
“With the right investment, we can kick-start the green economy in the North and potentially create 77,000 new green jobs over the next 10 years.
“Further devolution of powers to mayors and combined authorities is a critical step to deliver real change across the wide and diverse range of communities across the North.”
However, Ms Harrison stated that if the government wants to deliver its ambitions, “there will have to be investment as well as new legislation and policy change”.
Cris McGuinness, chief financial officer at Riverside, praised the planned ban on no-fault evictions and said it is “heartening to see the new housing and planning bill at the centre of the new government’s first King’s Speech”.
She added: “As one of the biggest builders of affordable housing in England, streamlining the planning system will help unpick some of the blockages which stop economic growth and prevent the delivery of much-needed new homes and infrastructure.”
However, Ms McGuinness said that planning reform alone is “not enough”.
She explained: “As economic conditions improve, the government must provide significant grant funding to deliver the social homes we need.
“The new government has been clear their number one priority is growing the economy.
“Increasing the supply of social and affordable housing in generation has the potential to turbocharge growth, as evidenced by analysis from the Centre for Economics and Business Research earlier this year – the government could add £51.2bn to the economy, including £12bn profit to the taxpayer, by building 90,000 social homes.
“We understand public finances are tight. However, after years of uncertainty and underfunding, our sector desperately needs stability so we urge the government to commit to a long-term settlement for social housing rents.”
Andy Hulme, chief executive of the Hyde Group, said: “We need a step change in delivery to address the steep fall in social housing supply.”
He added: “The positive attitude of the prime minister, chancellor and housing secretary towards delivering much-needed affordable homes gives us more confidence this will be delivered.
“However, getting the legislative landscape right is just one part of what’s needed. We must also see a long-term approach to funding brought forward to support social housing providers to make the investment needed in new and existing homes.
“To deliver a step change in the delivery of social and affordable housing, we have to start with the government’s social housing rent settlement, which underpins the resources we have to invest.
“With sustainable rents and commitment to funding building new social homes, we can bring in responsible funding from the private sector too, helping to turbo charge efforts to meet the new government’s ambitions.”
Patrick Franco, chief executive of Notting Hill Genesis, said: “While we are pleased to see the government’s draft Leasehold and Commonhold Reform Bill included and are equally encouraged by the proposed legislation on building and planning reform, which promises to improve operating conditions for our sector and help those struggling to make ends meet, there remains a lack of clarity regarding the ongoing funding of housing associations.
“We would have welcomed the government outlining how it intends to collaborate with us and other housing associations over the next five years to deliver the 300,000 homes per year needed to meet housing targets.
“With rental prices rising and long social housing waitlists making affordable, high-quality housing inaccessible for many, collaboration between housing associations and the government will be crucial for success.”
Greg Reed, chief executive of Places for People, said the announcements will “help unlock land, speed up the planning process and turbocharge house building”.
He added: “But we need to see this in action. To really drive delivery of the right homes, in the right places, supported by the right infrastructure, local planning authorities need to provide their own local plans and only 22% of them have adopted one in the last five years.
“With hopes of interest rates being further cut next month fading, there’s no time to wait. The time to build is now.”
Helen Walsham, deputy chief executive of Flagship Group, said the announcements are a “step in the right direction”.
However, she added that “we need a strong focus on social and affordable housing to truly address the housing crisis”.
Ms Walsham called for the government to do more to help smaller building firms into the market, as well as encourage apprenticeships in construction-related fields.
Geeta Nanda, chief executive of Metropolitan Thames Valley, said planning reform is a “key component of a long-term plan for housing, and we are pleased by the government’s clear commitment to this”.
“Today’s speech also contains a basis for which to ensure this reform can be effective through greater devolution of planning powers to elected mayors and local authorities, who are well placed to identify suitable land for housing.”
Ms Nanda added that the scale of the government’s ambition is extensive and housing associations will be “key partners in achieving these”.
“With the right resources and rebuilding of capacity, housing associations like us can play an even greater key role in helping to tackle the housing crisis,” she said.
Polly Neate, chief executive of Shelter, said the new Renters’ Rights Bill “has to be a fresh start at reforming broken private renting”.
However, she added: “If this government truly wants to deliver the biggest increase in social house building in a generation, any new planning legislation must be focussed on delivering 90,000 social rent homes a year.
“Private developers will not deliver the target 1.5 million homes by themselves – councils need the means to build genuinely affordable homes, too. Otherwise their plans will fail, like countless governments before them, and homelessness will remain at a record high.”
Ben Twomey, chief executive of Generation Rent, stated that the Renters’ Rights Bill must prevent homelessness and affordable rent rises.
He said: “After five years of promises from the previous government, with no improvements at the end of it, renters are understandably demoralised and wary of new commitments.
“The government faces a big test to reassure voters that it can quickly turn promises into action and change things for the better.
“These reforms must therefore go further than the previous government planned, with real support for tenants whose landlord wants to sell or move back in to prevent homelessness.
“This includes more time to enjoy our homes without fearing eviction, and more notice and financial support if this happens. Similarly, empowering tenants to challenge rent increases won’t work if we still end up with rents rising faster than our incomes.”
On the newly announced English Devolution Bill, Mr Twomey said it is “an opportunity to give metro mayors powers to slam the brakes on soaring rents and allow breathing space for those areas hardest hit by the renting crisis”.
Katie Kendrick, co-founder of the National Leasehold Campaign (NLC), said it was a “momentous day for leaseholders”.
“Over the years we have heard many Queen’s/King’s speeches promising reforms, but today’s commitment from the new government feels different.
“It feels like meaningful change is eventually going to be delivered.”
She added: “It is clear there is a lot of work still to do on the many issues of leasehold, but it’s refreshing to know that the new government is determined to pick up the outstanding issues, tackle them head on and deliver once and for all.”
Cath Williams, co-founder of NLC, said: “While we welcome the banning of new leasehold flats, we cannot forget the millions of existing leaseholders who remain trapped in this feudal system. We remain cautious about creating a two-tier system and care must be given to ensure existing leaseholders are not left behind.
“We need to see urgent action on capping existing ground rents otherwise people will remain trapped in homes they cannot sell.”
Clare Miller, chief executive of Clarion Housing Group, praised the planning announcement.
She said: “In just one local authority alone, we have 800 affordable homes stalled by the lack of promised investment in infrastructure. In another, the regeneration of three different housing estates has been delayed by the drawn out and under-resourced CPO [compulsory purchase order] process.”
Ms Miller added the sector has had “years of inadequate investment and piecemeal policy”. But “now with a more supportive planning environment and almost 20,000 homes in our pipeline, we look forward to working with the government to deliver the safe, secure, and affordable housing this country needs”.
Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, called for “political unity” following the speech.
He said: “Sadly, successive governments have backed away from their housebuilding commitments after encountering opposition either within their own ranks or from local pressure groups.
“I welcome the measures outlined in the King’s Speech aimed squarely at delivering the homes we need in Bradford, Keighley and elsewhere – but we have been here before.
“This time must be different, which means ministers sticking to their policy pledges and standing strong in the face of the inevitable challenges to new developments.
“That task will be greatly helped by politicians from all parties accepting the need to build new homes, rather than habitually opposing local housebuilding for political gain.”
London mayor Sadiq Khan said: “I welcome the English Devolution Bill, which will help unlock the power and potential of cities like London.
“It’s refreshing to have a government that recognises the vital role that regional mayors can play in boosting economic growth, building more homes and improving local communities.”
He also welcomed the no-fault eviction ban, adding: “Change is not going to happen overnight, but this is clearly a turning point.”
Marcus Dixon, director of UK residential research at JLL, said: “The ambitions of the new government are admirable, but as JLL has said during the election period: large housebuilding targets do not automatically mean greater output.
“We hope the new government will begin to address the systemic issues within the sector to unlock greater levels of development.”
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