By Colin Noble
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April 15, 2024
Recently, I was one of a small number of senior Conservative activists invited to a breakfast meeting with the Prime Minister at Downing Street. The Prime Minister was interested to hear our views about the issues we face. I spoke about housing as a third-generation homebuilder and someone who has spent 39 years in the industry, from building houses to engaging with communities on new housing, business, and industry development. The Conservative Party faces an existential crisis. For it to be the election-winning machine it has been for much of its existence, it must do one thing above all to win over the electorate—make the modern-day case for capitalism. A key component of this is ensuring that every individual has a physical stake in society. We would argue that the easiest way of achieving this is through bricks and mortar and creating a new ‘property-owning democracy.’ In 2016, just 34% of the adult population aged 16-34 were owner-occupiers [1] . By contrast, in 1995, property ownership for the same age group stood at 54%. So, the question for Government is this: do we move forward and build new housing our communities and residents need, or do we risk alienating an entire generation of aspirant homeowners? The reality is that the Conservative Party has always prospered electorally when it promotes a positive agenda on housing. In 1951, Winston Churchill triumphantly returned to Government on a manifesto of property ownership, and his administration fulfilled its pledge to the electorate to build 300,000 houses a year – a policy overseen by the future Prime Minister, Harold Macmillan. In 1980, it was, of course, Margaret Thatcher who introduced the ‘right to buy’, which increased property ownership by 12 per cent over just three years. So, how do get spades into the ground? There isn’t, of course one silver bullet, but here’s my three-point plan for starters. One – There needs to be a recognition that existing backlogs in the planning application determination process are a barrier to building new homes. a) Planning fees currently set by the Central Government, should be determined by individual local authorities. Currently, these fees do not cover the actual cost of processing applications. For example, in 2020/2021, 305 out of 343 planning departments operated in a deficit cumulatively totalling £245 million. b) Council planning departments also continue to experience recruitment and retention problems due to competition from the private sector. Giving councils the ability to set their planning fees locally would result in the sector being able to compete more effectively on terms and conditions, benefiting local residents. Whilst Chess Engage welcomed recent changes allowing councils to charge increased fees on major applications in exchange for an accelerated decision-making process, we fear that this will exclude local construction firms responsible for smaller-scale development. Developers, whatever their size, are key to tackling the housing shortage. Fully devolving the power to set planning fees to local authorities will speed up the decision-making process for all applications and turbocharge the effort to build more housing without costing the Treasury anything. Two – we need to get Councils building more homes. We know that social housing provides families with a secure environment to live in and can act as a bridge to home ownership. Of course, building new social housing will also help reduce the overall housing shortage and address the homelessness surge we are currently sadly seeing. Research from the LGA indicates that for every £1 invested in social housing, £2.84 is returned to the broader economy. Likewise, for every social home built, the Government can save £780 in housing benefit. To support councils in building more social homes, Government should allow Councils to retain 100% of their right to buy receipts to build social homes to replace those where people have taken the right steps to home ownership. These right-to-buy receipts staying with councils would be a real boost to the ambition of councils to build more social housing and reduce the use of temporary accommodation. Three - local authorities also need the long-term financial sustainability of their Housing Revenue Accounts (HRAs). For this reason, Chess Engage is calling on the Government to allow social housing rents to be set directly by local authorities rather than centrally. Again, this would be at zero cost to the Treasury but would ensure that HRAs have the long-term certainty necessary to deliver more social homes. With this power, councils would also be genuinely accountable to tenants for managing social housing. To tackle the national housing shortage and create the next generation of homeowners, we need to recognise that it is Local Government that can and will deliver sustainable housing to communities across our country. As a longstanding councillor and party activist who has knocked on thousands of doors over the years, I know that most people don’t fear new housing per se, but rather development that is not well designed and which does not come with the necessary infrastructure that is needed to support the additional demand on public services. Will the PM adopt my three-point plan? I do believe that delivering these three quick and easy wins which will boost housing growth and help the next generation of homeowners could be a way forward. In so doing, we will make the contemporary case for capitalism and secure the next generation of Conservative voters. After we’d finished, one of the PM’s policy advisors got in touch to set up a follow up meeting. Watch this space… [1] https://researchbriefings.files.parliament.uk/documents/CBP-7706/CBP-7706.pdf