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Flawed targets hitting the North’s housebuilding ambitions, claims Labour
The North of England could miss out on tens of thousands of homes because of a change in the way the government measures housing need, key figures have warned.
John Healey, shadow housing secretary, said a system introduced by then-communities secretary Sajid Javid last September was acting as “a cap on Northern aspiration”.
Mr Healey was speaking after planning consultancy Lichfields released its analysis of the impact of the standard method Mr Javid approved for assessing housing need.
Lichfields found that 13,340 fewer homes could be built each year across 72 local authorities, making up the Northern Powerhouse due to the change.
Mr Healey said: “Ministers’ flawed housing targets are a cap on Northern aspiration. Ambitious Northern areas want to build for the future.
“The housing crisis is a national crisis. Homeownership has fallen in every region since 2010, and there is visibly rising homelessness in almost every town and city in the country.
“The chancellor should use the next budget to reverse the deep cuts in housing investment made since 2010 and back Northern areas to build.”
Mr Javid’s standard methodology uses household projection data with a multiplier applied in areas where house prices outstrip local incomes, and a cap keeping any increase in local targets at no more than 40% of the figure set in up-to-date local plans or, failing that, in household need projections.
The system was designed to prevent different consultancies using varying methods to come up with wide-ranging housebuilding projections for councils.
But critics say it relies on historic projections for the future and doesn’t account for rapid economic growth in the North. Figures released by estate agent Hamptons International this week showed that the number of people leaving London for Northern England or the Midlands has tripled since 2010.
The Lichfields research was commissioned by Homes for the North – an alliance of almost 20 housing associations in the region.
Carol Matthews, chair of the alliance, said: “As our great Northern cities continue to thrive both economically and culturally, increasing numbers of people are moving to places such as Manchester, Leeds and Newcastle.
“In the next 10 years, the North will need 500,000 new homes to keep up current demand. Yet government policy isn’t geared up for this. The way future housing need is planned fails to recognise future growth prospects of cities across the North.
“This needs to be addressed immediately. Failure to do so will hold the North back – and it is the next generation who will pay the price.”
The Ministry of Housing, Communities and Local Government has been contacted for comment.
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