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The Government’s approach to housing

The Government’s approach to housing. Simon Ridley Head of Housing & Urban Team. Overview. Government objectives for housing The problem Nationally and in the SE Government’s approach

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The Government’s approach to housing

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  1. The Government’s approach to housing Simon Ridley Head of Housing & Urban Team IPPR seminar

  2. Overview • Government objectives for housing • The problem • Nationally and in the SE • Government’s approach • Sustainable Communities Plan, implementing Barker Review, investment, regional agenda, environmental sustainability • The challenge of delivery

  3. The Government has a complex set of objectives for housing • Access to decent shelter for all • Macroeconomic stability • Labour mobility • Housing’s role as an asset • Environmental and social sustainability • Regional growth balanced

  4. Long-term imbalances between supply and demand are costly to the economy and households • Over last 30 years UK house prices went up by 2.4% in real terms compared to European average of 1.1% • In 2002 only 37% of new households in England could afford to buy a house compared to 46% in late 1980s • Ratio between lower quartile house prices and lower quartile incomes in SE increased by 83% in last 6 years • Increased pressures of homelessness Sources: HMT EMU study, Barker review, GOSE

  5. Different parts of the country are experiencing different problems

  6. The Government is dedicated to providing decent homes for all • Delivering the Sustainable Communities Plan • Implementing the Barker Review • Investing in infrastructure and social housing • Supporting growth in every region • Ensuring new housing is environmentally sustainable

  7. The Sustainable Communities Plan sets out the Government’s overall agenda • £1.2bn market renewal programme aims to revive failing housing markets in areas of low demand • Growth areas strategy focuses growth in 4 areas across wider SE to deliver 200,000 homes above existing plans • Major investment across growth areas: • £3.1bn for new transport schemes such as CTRL • £60m additional health spending for PCTs • Schools investment programme to take account of growth • Abolition of ‘ceilings’ to ensure fast-growing local authorities not penalised • 80% of new development in Thames Gateway on brownfield sites

  8. The Government is committed to implementing the Barker review to tackle long-term under-supply • Government response to Barker by end 2005 • Investment in social housing and through £200m Community Infrastructure Fund • Establish affordability goal by end 2005 • Reform PPG3 to enhance responsiveness • Merge regional housing and planning bodies, supported by strong advice • Examine local incentives to support growth • Consider whether PGS is effective and workable • Work with industry to improve customer satisfaction, skills and design

  9. A programme of major infrastructure investment is taking place in every region Source: PESA 2004, HMT

  10. The Government’s regional agenda is supporting growth across the UK • HMT/ ODPM/ DTI shared PSA to reduce the gap in growth rates between regions • The Government is committed to strengthening the regional role in increasing productivity • Ongoing devolution of decision making: • Lead role of RDAs in promoting economic development • Strategic planning at the regional level for economic development, housing, planning and transport • Consultation on regional funding guidelines to encourage greater prioritisation and co-ordination between different regional strategies

  11. Action is being taken to ensure new housing is environmentally sustainable • Continue to improve the environmental performance of buildings and developments during their planning, design, construction and in use • Sustainable Buildings Code being introduced by end 2005 • Use land more efficiently and protect valuable green space • Average densities in UK up from 25 dwellings per hectare in 1995 to 33 dwellings per hectare in 2003 • 67% of new development in 2003 on brownfield land, up from 56% in 1997 • an additional 19,000 ha of green belt has been created

  12. “We have a fantastic once-in-a-generation opportunity to create new sustainable communities” • The challenge for everybody: central, regional and local • government, industry and communities is delivery: • Regional spatial plans • Sustainable Communities Plan • Barker implementation • Investment in social housing and infrastructure • Communities that are environmentally sustainable

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