Article by , Chief Executive of
Centre for Cities, for ConservativeHome
You can almost guarantee that, however mad British politics gets,
solving the housing crisis is never far from policy makers’
minds.
In Downing Street, and are reportedly working on a
plan to ramp up homebuilding numbers as part of our recovery from
the economic damage done by lockdown. I understand that very
significant reforms are being suggested to Britain’s post-war
planning rulebook.
Significant reforms are certainly needed. The shortage of homes,
particularly for younger people who need move to our most
high-demand cities and towns for work, remains one of the largest
domestic challenges that we face as a country. It fuels huge
social divisions: while homeownership remains a distant dream for
many young people, existing homeowners – mostly older and living
in urban south east England – have amassed huge fortunes in
housing wealth.
Without a proper plan to fix this problem and help the younger
generation, no political party should be confident about its own
long-term survival. The Government must come up with a bold
solution to get Britain building the homes we need, where we need
them.
All too often our analysis of the housing crisis boils down to
criticising the people operating around it: greedy developers;
box-ticking town planners; selfish NIMBYs or frivolous
millennials impulse-buying too many avocados to save for a
deposit.
We say that if only these people changed their behaviours – built
more, saved more, thought more about the next generation – then
we wouldn’t have a housing crisis. This is a flawed view; the
problem with our planning system is the system itself.
Most town planners that you speak to will quietly admit that the
planning system is designed to prevent development, not permit
it. Its discretionary case-by-case nature rations the development
of land and chokes off the supply of new homes in the places
where we need them most – close to jobs. Instead, it forces
councils to build new homes where it is most politically
expedient, not where they’re needed.
The consequence of this? Just four per cent of suburban
neighbourhoods supplied 45 per cent of new homes in the past
decade, while one in five neighbourhoods built no new homes at
all. Some places have particularly poor records: in Oxford for
example, no neighbourhood has built more than 25 homes a year in
the last decade and as a result, many of the people drawn there
for work and study struggle to afford decant housing. If this
does not change our prosperity will suffer and the inequalities
that we see in this country will become even more entrenched.
Clearly the bureaucratic case-by-case nature of the current
planning system is a major hurdle to our ability to supply the
homes that we need, where we need them. You can see alarming
parallels in our own system with the ‘shortage economies’ of the
former Eastern Bloc, where production was tightly controlled by
the rationing of permits.
Tinkering around the edges is not enough. To solve the housing
crisis and build the homes needed we should introduce a brand-new
flexible zoning code, designed by the UK and devolved
governments, to guide local authorities and city regions in the
development of their own local plans.
Under this new code, any proposals that comply with a zone-based
local plan and building regulations would automatically be
granted planning permission. Areas would be zoned according to
density – ranging from light residential up to industrial.
There would still be opportunities for public consultation under
this model, but they would be frontloaded into the writing of the
plan rather than giving the public effective sign off on every
single development.
I appreciate that removing much of the public consultation
element of the planning process would be a controversial move for
many people, but the current system is simply too bureaucratic
and unresponsive to allow for enough new homes to be built.
Many of the most common concerns that people have about
development, such as aesthetics and density, could be addressed
in the drafting of the local plan. So, for example, if people
wanted to ensure that any new developments in their area were
medium density mock-Georgian terraces they would still have the
opportunity to do this under a zone-based system, but at the very
beginning when the plan is developed.
A stable home need not be unaffordable, as it is for many people
in Britain today. Our housing crisis is the result of a political
choice that results from our tacit commitment to sustain a
bureaucracy that deliberately undersupplies new homes. This fuels
inequality between prosperous places and struggling one, between
homeowners and their children, and between the haves and the
have-nots.
We can change this with a more flexible zoned approach to
development, but it requires genuine political will to make it
happen. With a majority of 80 and no election on the horizon, the
time is right for the Government to seize this opportunity to end
the housing crisis.
Yet if it balks now and our housing crisis worsens, it will
further entrench our economic and social divides and make Britain
an even more unequal place.
You can read our new report ‘Planning for the Future: How
flexible zoning will end the housing crisis’ here.