A new Tory leader needs to grapple with the disparate politics of housing
The candidates to be Britain’s next Conservative leader spent the weekend in a series of spats over economic plans for the future of the UK. You would assume other important topics, such as the pressing housing crisis, would also be front and centre. At the time of writing, Tom Tugendhat was the only one to even mention it. And by the time this column is published, he will likely be out of the race.
In a way, the absence of housing from the national political agenda is not a huge surprise. Since 2010, there have been 12 housing ministers. Meanwhile, housing is just one part of the remit of the Levelling Up, Housing & Communities Secretary, who also oversees, variously, faith groups and local councils.
Then there is rhetoric. In a speech last month before his resignation, Boris Johnson referred to his government’s manifesto target of building 300,000 homes a year. In saying he couldn’t offer a “cast-iron guarantee that we’re going to get to a number in a particular year”, he cast doubt on his government’s faith in its own policies.
So, with the field due to be thinned down to two candidates later this week, it would be refreshing and reassuring to see a discussion around the future of housing policy among those hoping to be our next prime minister, and for the government to reaffirm a commitment to the industry.
Speak to chief executives across the housing industry and many will point to immediate issues they believe need to be addressed by ministers that would go some way to stimulate housebuilding. Take our planning system first.
One issue is that many local council planning departments are over-stretched and under-resourced. The result is often planning application logjams, with developers waiting too long for decisions.
Another problem is what I see as the politicisation of housing committees. In recent years we have encountered instances where our planning applications for housing schemes have been recommended for approval by officers – who must follow the councils’ agreed policies and local plan – only for councillors to reject the plans. The upshot of this approach is that homes are either delayed or, worse, not built at all. Meanwhile, this approach to planning makes it less likely that developers will continue submitting plans for schemes in these boroughs, to the detriment of people wanting to buy homes there.
There are relatively easy fixes here: better-funded planning departments and outline permission being granted to schemes in line with local plans. But more is needed. Like all businesses, housebuilders crave certainty. Yet with the average tenure of prime ministers and housing ministers getting shorter, developers lack the stability to invest with confidence. It’s therefore crucial that the next prime minister answers three questions quickly.
The first is what’s the build target and where’s the focus? While many routinely refer to Britain’s housing crisis, the reality is the picture is more nuanced than people appreciate. Supply differs by area, with some parts of the country having a surplus while others endure crisis-level, acute shortages. The government must also be clear on its approach to affordable housing and have ideas for boosting supply in this vital area.
Second, ministers need to point the way on planning. How can local authorities be supported so they’re able to quickly and efficiently process planning applications? How can the government assuage the fears of backbenchers in the shires while creating the conditions for housebuilders to boost supply in these areas? These are difficult questions that need answers, not fudges.
Finally, many have been critical of initiatives that boost demand – notably Help to Buy – at the expense of supply. But while finding ways of increasing supply is vital, providing support for those looking to buy is equally important. This doesn’t need to be simply more government-funded giveaways. It could be encouraging greater innovation in the mortgage market to help more people on to the ladder.
UK housing remains at crisis levels for the buyers but represents an attractive place to invest. However, developers require clear direction from the government to play their part in a successful market that works for everyone. Is this all too much to hope for? By the autumn, with a new prime minister in place, we should know the answer.