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With the general election just around the corner and Conservative polls faltering, it was almost inevitable that the government would look to housing to win new support from voters.
Britain has been a country obsessed with the concept of homeownership since Margaret Thatcher proclaimed her belief in “property ownership democracy” and introduced purchase rights in 1980, and Rishi Snak knows it.
Housing Secretary Michael Gove yesterday announced a new plan to help tens of thousands of people move up the real estate ladder by introducing new housing-building measures to increase the supply of much-needed new homes. This includes plans to create several new investment zones focused on new urban housing, the first of which will be a major extension in Cambridge.
But what do people working in the real estate industry think about this proposal?
Industry reaction:
Propertymark CEO Nathan Emerson commented: “The UK government’s efforts to build more housing are disappointing. To provide the housing the country needs, plans need to be more ambitious and the government needs to move faster and further to achieve this.
“In order to meet demand in different parts of the country, it is important not only to set tenure-related housing targets but also to avoid a piecemeal approach. Housing reform must also protect the greenbelt while reflecting social change, helping to address the climate emergency, engaging the tax system, meeting the needs of the elderly and ultimately providing more affordable options.
“Changes to the UK’s private rental sector have been long overdue and it is positive to hear that the UK government is working to ensure that bona fide landlords and brokers are able to support these proposals.
“The private rental sector is so critical to a well-functioning housing market that a holistic long-term plan, including tax reform and clarification of energy efficiency targets, is needed to address the imbalance between high demand and low housing supply and to encourage investment by real estate agents and their landlords.”
“It is encouraging that further tenure law reforms are being considered, as reforms that reduce costs for consumers and create a level playing field with those who already own tenure are essential. In addition, we welcome the inclusion of new design standards proposals to improve the quality of new homes and new support to help first-time buyers climb the real estate ladder.
“The Secretary of State’s announcement is a step in the right direction, but action is needed now in all regions to provide the housing the country needs.”
Alex Michelin, co-founder of Valouran and Finchatton, said: “The main challenge facing the housing sector today is undoubtedly planning. Over the past decade, the central government has significantly cut funding to the planning sector, leaving it completely understaffed and lacking the equipment and technology needed to effectively manage the number of planning applications it receives. Even simple applications can take up to a year to be approved, putting pressure on the UK economy and causing a massive housing shortage.
Michael Gove’s approach to relaxing planning rules to build more homes “in the heart of the city” does not prevent developers from building many coveted housing opportunities. This change will allow developers such as Valouran to focus on delivering high quality, sustainable and future-proof buildings. Streamlined regulation will allow a focus on strengthening design standards and reducing environmental impact. However, responsible urban planning must continue to be a priority to ensure harmony with existing communities and maintain urban character. ”
Mick Pratt, Director of the Home Freehold Association, said: “Urban housing is a key piece of the puzzle in addressing the country’s housing crisis and meeting its environmental goals, but governments need to think carefully about the challenges and opportunities associated with high-density housing.
“Large and complex apartments are not easy to manage and the government’s tenure reform plan risks shifting this responsibility onto residents, many of whom do not want it.
“Decarbonization is also a key issue for this form of housing, and governments should work with institutional investors and landlords on this issue rather than trying to push them out of the market.”
Colin Brown, Director of Planning and Development at Carter Jonas, commented: “There is some encouragement regarding the proposal for new funding lines to support local governments’ heavy workloads and backlogs.
“If the government really wants to boost deliveries, for example in Cambridge, there is a good chance that development companies can come into play. But since Cambridge is surrounded by the Greenbelt, there remains the big question of how to exploit that ongoing potential without recognizing that the development of the Greenbelt is almost certainly necessary.
“But what is clear is that the national housing goal is likely to be abandoned. The references to urban areas and brownfield sites anticipate the fact that greenfield development in areas with the highest housing demand is not really getting the attention it deserves.
“We support the use of brownfield land, but it is totally wrong to suggest that the housing crisis can be addressed this way. We need to consider both greenfield and greenbelt land.”
Goodroad Insurance Director Ori Sherlock said: “We desperately need to build more homes if we want to ease the pressure on the rental industry. But we need concrete goals and commitments. We have ignored the housing market for too long.
HomeOwners Alliance CEO Paula Higgins said: “We support action to build more housing, using urban centers and existing sites to build more housing. The easy conversion of empty shops into apartments and houses is welcome in principle, but such conversions are often poorly ventilated and of poor quality. Admittedly, they were not always beautiful. These developments must be properly inspected by a third party and the purchaser must have a full construction warranty.
“We warn our readers to face reality before buying such homes. Few repurposed properties have dedicated or shared spaces outside, some are located on very noisy and polluted streets, others are located in business parks miles from shops and schools.” If the government really wants to build housing where people want to live, it needs a strategy that builds housing not only in cities, but also in suburbs and rural areas. ”