HOUSEBUILDING IS BOOMING, SO DON'T FIX IT IF IT AIN'T BROKE

6 March 2006

As Government prepares to reform the planning of new homes [1], countryside campaigners CPRE [2] point out that housebuilding is going through a huge boom – the like of which has not been seen for many years.

Last year 160,000 new homes were completed in England, according to official figures [3]. The last time that level of output was attained was way back in 1990. Indeed, housebuilding has grown by a fifth since the current planning policy came into force six years ago [4].

Housebuilders and their allies often complain about the difficulties of getting planning permission for new homes. But ODPM statistics also demonstrate a rapid, sustained growth in the granting of planning permissions by local councils – up by almost a third [5].

CPRE’s planning and housing campaigner Henry Oliver said: ‘The planning system has enabled a steady, strong growth in the building of new homes since the current policy was introduced by Mr Prescott in 2000 – exactly six years ago this week [6].

‘At the same time we’ve had a big increase in the use of derelict or under-used land for new homes. This has helped to protect the countryside and the wider environment while contributing massively to urban regeneration [7].

‘While the Treasury, the housebuilders and other development interests are piling on the pressure for a weaker, market-driven approach to how we plan for new homes, it’s clear the present policy has actually delivered six years of success. It’s one of the most environmentally-friendly policies the Government has ever introduced, one that really does approach sustainable development. If it ain’t broke, don’t fix it.’

In its submission to Government, CPRE is arguing that the new policy on planning for housing must retain a strong ‘brownfield first’ line. Giving market demand for housing a stronger role in allocating sites for new homes could lead to a big increase in greenfield housebuilding and is potentially a recipe for dispersed, unsustainable patterns of development [8].

Henry Oliver said: ‘We must also boost subsidised housebuilding for those who cannot afford to rent or buy at market prices. Output of these affordable homes has only just started to recover from the lowest levels in half a century [9].’

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NOTES FOR EDITORS

1. The Office of the Deputy Prime Minister (ODPM) finished consulting on its draft Planning Policy Statement 3 – Housing (PPS3) on 27 February. The final version is expected to be issued later this year. A copy of CPRE’s response to the consultation can be obtained from the Press Office.

2. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Sir Max Hastings. Patron: Her Majesty The Queen.

3. The number of houses completed in England in Calendar Year 2005 was 159,700 – ODPM Statistical Release 2006/0023, 6 February 2006. The last time completions exceeded that level was in 1990, with a total of 164,000, according to the Housing Statistics section of the ODPM website odpm.gov.uk.

4. 135,000 new homes were completed in England in Calendar Year 2000. Output in 2005 was 19 per cent higher.

5. In Fiscal Year 2000/2001 a total of 40,100 planning applications for housing were granted by councils in England, according to the Planning Statistics section of odpm.gov.uk. In Fiscal Year 2004/2005 that had risen to 52,600, a 31 per cent increase.

6. This is Planning Policy Guidance Note 3 – Housing (PPG3). Published on 7 March 2000, it was introduced following strong lobbying by CPRE and other organisations, notably Lord Rogers’ Urban Task Force which reported in 1999. PPG3 called for the use of brownfield (previously developed) land for new homes before greenfield sites were built on, and a shift away from land-wasting low densities for new homes.

7. 72 per cent of new homes were built on brownfield land in 2004 – the latest year for which ODPM figures are available and a very significant increase since 2000. CPRE argues that a strong ‘brownfield first’ approach is no obstacle to development. By sending a clear message to developers about preferred areas for development it may actually have encouraged it.

8. Draft PPS3 (see Note 1 above) gives market signals a stronger role in planning decisions. The policy is being revised following economist Kate Barker’s review by Kate Barker of housing supply commissioned by ODPM and the Treasury. Her review, published in 2004, argued that housebuilding was insufficiently responsive to changes in demand. CPRE argues that the environmental, social and economic issues involved in housebuilding are too important to be considered mainly as a matter of supply and demand. In any case, the strong growth in output and planning permissions shows the system is responsive to demand.

9. Output of new homes in England by housing associations and local authorities stood at 16,700 homes in Fiscal Year 2004/2005 having fallen to the lowest levels for decades in FY 2003/2004 – just 13,400 homes. For much of the post-Second World War more than 100,000 of these subsidised homes were being built in England each year. By contrast, the output of homes built by commercial housebuilders for sale on the open market (142,000 in Calendar Year 2005) is just above the average for the past 50 years (141,000 homes completed per annum).

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