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Nearly 32,000 of last year’s 217,000 new homes would be deemed unnecessary under the government’s proposed method of measuring housing need.
Last year saw the highest number of additions to housing stock since the recession after a 15% rise in new homes added.
But under the ‘objectively assessed need’ methodology that the government plans to require councils to meet in local plans, many of the homes were built in areas they were not needed. The methodology raises the figure for national need considerably and calls for a huge increase of building in London.
But 114 English local authorities – including seven of the country’s top 10 councils for housebuilding – were told they need a total of 31,835 fewer homes than recently released figures show they are actually delivering.
Net additions statistics for 2016/17 show, for example, that Liverpool built 3,485 new homes last year. On the government’s proposed methodology, 1,803 of these homes were unnecessary.
Newcastle on Tyne built 1,694 homes that supposedly weren’t needed in 2016/17, while Croydon built 1,421, and 66% of the 2,020 homes built in Cheshire West and Chester were unnecessary, according to the methodology.
Emily Williams, senior researcher at Savills, told Inside Housing: “The government assessment uses household projections as its starting point and the only adjustment is for affordability in that area.
“The issue with that is that if you are in an area which has had historic low delivery and therefore historic low household formation, you end up getting a very low number.”
The other four councils in the top 10 for delivering housing but also building supposedly unnecessary housing were Salford, Leeds, Wiltshire and Cornwall.
Leeds Council recently scaled back its development plans after the government’s methodology gave the city a lower assessment of housing need than its local plan and some analysts fear more councils will follow suit.
Andrew Whitaker, planning director at the Home Builders Federation, told Inside Housing: “Some people have been planning for higher numbers than the standard methodology would apply, and we say no that’s OK, local authorities can carry on planning for the higher numbers that are supporting their economic growth aspirations and their various other aspirations.”
A Department for Communities and Local Government spokesperson said: “Our new approach is about getting a better understanding of housing needs in local areas and using this as a basis to plan for affordable high-quality homes for everyone.
“We are taking a transparent approach to housing needs in local areas, taking into account the affordability of homes locally. It’s not a local target, and we have been clear we will support councils who want to be ambitious and deliver more homes.”