RTPI-CIH Planning for Housing Network 12th February 2015 SHARP PLANNING PLUS Malcolm Sharp.

RTPI-CIH Planning for Housing Network

12th February 2015

*Reflections on theLyons Commission

SHARP PLANNING PLUS

Malcolm Sharp

SHARP PLANNING PLUS

THE REMIT

• Sponsored by Labour• Independent• Chair: Sir Michael Lyons

• Road map to secure 200,000 homes per year by the end of the next parliament

Personal reflection not speaking for the Commission

SHARP PLANNING PLUS

THE COMMISSIONERS:Chair: Sir Michael Lyons

• Tom Bloxham – Chairman Urban Splash• Mark Clare - C. Exec. Barratts• Julia Evans – C. Exec. N.F.B.• Kate Henderson – C. Exec. T.C.P.A.• Bill Hughes – M.D. Legal and General

Property• Grania Long – C. Exec. C.I.H.• Simon Marsh – Head of Planning Policy RSPB• David Orr – C. Exec. N.H.F.• Richard Parker – Partner & Head of Housing

PWC• Malcolm Sharp – Past Pres P.O.S.• Cllr Ed Turner – Dpty. Ldr. Oxford• Prof. Cecilia Wong – Spatial Plng Univ.

Manchester

SHARP PLANNING PLUS

The LyonsHousing Review Mobilising across thenation to build the homesOur children need

SHARP PLANNING PLUS

• A housing crisis of our own making• National focus on delivery• Land supply• Ensuring land is built out• Communities driving their own development• A new generation of Garden Cities and Garden

Suburbs• The house building industry• Quality, Design and Sustainability• Housing for all

SHARP PLANNING PLUS

THE CASE

• 2013 109,000 new build

• Last 10 years avearge p a 137,000 pa

• Need 243,000 pa

SHARP PLANNING PLUS

THE CASE

• Good homes underpin all our collective ambitions – stable communities, educational attainment; “quality of life”

• A major contribution to a stronger national economy, an important domestic industry, greater labour mobility, building on opportunity

• Critical to the control of inflation• Current system one cause of increasing

inequaliity

SHARP PLANNING PLUS

Two background Issues:

Enough land (in the right place)(but its not all planning fault)

Capacity to build(both more ‘developers’ and

‘construction capability skills etc)

But more complex than this.

SHARP PLANNING PLUS

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012100

110

120

130

140

150

160

170

180

190

200

Net rent paid

Mortgage payments

Co

st o

f ho

usi

ng

(2

00

3=

10

0)

SHARP PLANNING PLUS

19711974

19771980

19831986

19891992

19951998

20012004

20072010

20132016

20192022

20252028

20312034

20370%

5%

10%

15%

20%

25%

30%Aged 85 & aboveAged 80-84Aged 75-79Aged 70-74

Pe

rce

nt o

f to

tal p

op

ula

tion

SHARP PLANNING PLUS

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

0

50,000

100,000

150,000

200,000

250,000 2000+ units501-2000 units101-500 units

Ho

usi

ng

sta

rts

(GB

)

SHARP PLANNING PLUS

19771979

19811983

19851987

19891991

19931995

19971999

20012003

20052007

20092011

20130

2,000

4,000

6,000

8,000

10,000

12,000

14,000SMEs (1-500 units)

Nu

mb

er

of h

ou

seb

uild

ers

SHARP PLANNING PLUS

Q4 2007

Q2 2008

Q4 2008

Q2 2009

Q4 2009

Q2 2010

Q4 2010

Q2 2011

Q4 2011

Q2 2012

Q4 2012

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

0

1

2

3

4

5

6

7Current Land Bank (plots)

Current Land Bank (years of supply)

Cu

rre

nt L

an

d B

an

k (p

lots

)

Cu

rre

nt L

an

d B

an

k (y

ea

rs o

f su

pp

ly)

SHARP PLANNING PLUS

0

5

10

15

20

25Strategic Land - Years of Supply

Ye

ars

of s

up

ply

SHARP PLANNING PLUS

SHARP PLANNING PLUS

1919/20

1923/24

1927/28

1931/32

1935/36

1939/40

1943/441948

19521956

19601964

19681972

19761980

19841988

19921996

20002004

20082012

0

50000

100000

150000

200000

250000

300000

350000

400000Local AuthoritiesHousing Associa-tionsPrivate Enterprise

Ho

usi

ng

co

mp

letio

ns

SHARP PLANNING PLUS

1980-81

1982-83

1984-85

1986-87

1988-89

1990-91

1992-93

1994-95

1996-97

1998-99

2000-01

2002-03

2004-05

2006-07

2008-09

2010-11

2012-13

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000Right to Buy

Dw

elli

ng

s

SHARP PLANNING PLUS

Be

lgiu

m

Ire

lan

d

Italy

Po

rtu

ga

l

Sp

ain

No

rwa

y

UK

Sw

ed

en

Ge

rma

ny

De

nm

ark

Fra

nce

Fin

lan

d

Au

stria

Sw

itze

rlan

d

Ne

the

rlan

ds

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Pe

rce

nt o

f re

al e

sta

te in

vest

me

nt p

ort

folio

in

resi

de

ntia

l pro

pe

rty

by

valu

e

SHARP PLANNING PLUSRECOMMENDATIONS:

• A NATIONAL PRIORITY• Cabinet post• Cross Dept Task Force• Re-tasked HCA• Consolidated & Devolved Funding• National Spatial dimension

• LOCAL LEAD • Strategic Housing Market Plans (right to

grow)• Local Plans but on both:

• Sec of State to intervene if necessary• New Homes Corporations• Housing Growth Areas

SHARP PLANNING PLUS

RECOMMENDATIONS:

• PLANNING• Simplify Plan making (POS proposals)• Use it or loose it (tax on unused

allocations, life of pp and substantial starts)

• ‘red line’ applications• 106 / CIL amendments including re

consideration of neighbourhood share & revert threshold for affordable

• NPPF – revert defn. of affordable - & brownfield first

• NPPG – viability & SHMAs• Annual Monitoring strengthened• Statistics strengthened• Greater emphasis on delivery• Plans - more detail on tenure / need

including PRS & local priority where public stake

SHARP PLANNING PLUS

RECOMMENDATIONS:

• LOCAL AUTHORITIES (Planning ++++++)• Play much more energetic role in land

assembly• Greater powers in HGAs• CPO reform and compensation

arrangements in HGAs & Garden Cities• Rolling funds / equity investment• Free up borrowing headroom• Local Planning fees

SHARP PLANNING PLUSRECOMMENDATIONS:

• OTHER• Loan guarantees to HAs• Institutional borrowing for PRS• Greater powers in HGAs• Transparency in land market• Revolving infrastructure funds• Garden Cities and suburbs• Support for SMEs• Skills• Quality – building for life, space

standards, new kite mark, zero carbon.• Housing for older people• Reform Right to Buy & New Homes

Bonus

SHARP PLANNING PLUS

SHARP PLANNING PLUS

REFLECTIONS:

• National scandal• Needs national leadership• Most comprehensive report for

years• Common cause and purpose• Complex – action on a variety of

fronts• Local Authority role - planning +

++++ crucial• Remarkable consensus• Politically difficult – limited votes?• Bold but could be bolder?