Kate Barker’s Recommendations for the UK Housing MarketKate Barker’s Recommendations for the UK Housing Market According to Kate Barker, the UK housing market is currently facing several challenges. She highlights that indicators of market health are worse today than they were 20 years ago. The supply of new social housing has declined, and there has been a failure to link new homes to infrastructure delivery. To address these issues, Barker makes 18 recommendations in her memo to the government. These recommendations cover planning, financing, and implementation of housing policy. Implementation * Restore the National Housing and Planning Advice Unit (NHPAU) to develop a more robust approach to mandatory housing targets. * Establish an interdepartmental Implementation Unit within Cabinet Office to oversee housing policy delivery and coordinate with key stakeholders. Financing * Streamline existing funding pots and processes, moving away from competitive, small-pot funding towards longer-term, needs-based formulas. * Recognize the role of institutional investment in housing by creating a level playing field for taxes and establishing a clear vision for future developments. * Reform the current system of developer contributions (Section 106 and CIL) to prioritize affordable housing over infrastructure levy. Planning * Restore a mandatory approach to strategic planning at sub-regional/city region level. * Establish an extensive network of spatial planning teams between authorities to increase skills, capacity, and resources. * Increase the delivery of small and medium-sized sites and support SMEs and community-led developers through changes to the National Planning Policy Framework (NPPF). * Commission an independent inquiry into the Metropolitan Green Belt to identify strategic growth opportunities. * Review Homes England’s role as a master developer and explore partnership opportunities with development companies. Barker’s recommendations aim to create a more robust approach to housing supply and planning in England. The final report of her commission is expected to be published in the fall.
According to Kate Barker, most indicators of the health of the housing market are worse today than they were 20 years ago and the supply of new social housing has declined.
In her letter to Matthew Pennycook MP, the new housing secretary, Barker recommended that the government re-establish the National Housing and Planning Advice Unit “as soon as possible” to create a more robust approach to mandatory housing targets.
Another initial recommendation is that the government establishes an inter-departmental implementation unit within Cabinet Office to oversee the delivery of housing policy, working with key stakeholders such as the Bank of England and collaborating with finance and utilities regulators.
Barker’s memo to the government, which makes 18 recommendations on planning, financing and implementation, says that “despite strong support for her original report, a recent review by the Home Builders Federation (HBF) has found that only 11 of the 36 recommendations are currently in place.”
It adds: “Unfortunately, most indicators of housing market health are worse today than they were 20 years ago. In particular, there has been a failure to link new homes to infrastructure delivery and also, since the financial crisis, there has been a further decline in the supply of new social housing.”
>> See also: Only one in six municipalities uses national exception locations to increase the supply of social housing
>> See also: Lloyds proposes extra payment for ‘Social Housing Contract’ to boost housing supply
Some of the initial recommendations in Dame Kate Barker’s memo:
Implementation
- Restore the National Housing and Planning Advice Unit (NHPAU) as soon as possible to develop a more robust approach to mandatory housing targets at a strategic level.
- Establish an interdepartmental Implementation Unit at the Cabinet to coordinate the delivery of housing policy across government and work with key stakeholders such as the Bank of England and financial and utilities regulators.
Financing
- Streamline existing funding pots and processesreplacing the wasteful and divisive short-term, competitive, small-pot funding model with longer-term, needs-based funding formulas.
- Recognize the crucial role of institutional investment in housing, by creating a level playing field for taxes and creating a clear vision for the delivery of future developments.
- Reform the current system of developer contributions through Section 106 and CIL, with a certain aim to create more affordable housing, rather than introducing the proposed infrastructure levy.
Schedule
- Restore a more effective mandatory approach to strategic planning at sub-regional/city region level to support the plan-driven system and deploy planners for spatial planning rather than regulatory development management functions.
- Establish an extensive network of spatial planning teams between authorities to increase the skills, capacity and resources of planning teams.
- Significantly increase the delivery of small and medium-sized sites and delivery by SME and community-led developers through specific changes to the NPPF, for example by supporting Permission in Principle.
- Commission an independent inquiry into the Metropolitan Green Belt to identify strategic growth opportunities, including new or expanded cities.
- Review Homes England’s role as a master developer possibly collaborate with development corporations.
In March, economist Barker was appointed by think tank Radix, with backing from law firm Shoosmiths, to lead a new study into housing supply in England.
This new research marks 20 years since Barker’s previous research into housing supply and planning, which she carried out for the previous Labour government.
On funding, Barker said existing funding pots should be streamlined, “replacing a wasteful and divisive, short-term, competitive, small-pot funding model with longer-term, needs-based funding formulas.”
On planning, the Barker Housing Committee argued that the government should significantly increase the supply of small and medium-sized sites and delivery by SMEs and community-led developers by making specific changes to the national planning policy framework, for example by granting consent in principle.
Another recommendation to government is that the Metropolitan Green Belt should be independently assessed to identify strategic opportunities for growth, including new or expanded cities.
Barker echoed the recommendations of the Homes England review by government bodies published in April, suggesting that Homes England’s role as lead developer be reassessed and potential partnership opportunities explored with development companies.
The committee’s final report will be published this fall.
The members of the Commission:
- Dame Kate Barker CBE (Chair), Chair of the 2004 Barker Review into Housing Supply and the subsequent Review into Planning (2006); author of Housing: Where’s the Plan (2014) and former member of the National Infrastructure Commission
- Lord Richard Best, Leader of Social Housing and Member of the House of Lords Built Environment Committee
- Richard Blyth, Head of Policy at the Royal Town Planning Institute
- Paul Brocklehurst, Chairman of the Land, Planning and Development Federation and former head of Catesby Estates
- Tom Chance, CEO, Community Land Trust Network
- Rick de Blaby, CEO, Get Living
- Melissa Mean, Director at WeCanMake, a community project to create affordable housing by unlocking micro-locations for development Alexandra Notay, Independent Commissioner at the Geospatial Commission
- Elsie Owusu OBE, Founder of the Society of Black Architects
- Vicky Pryce, Chair of Radix Fellows and leading economist
- Ben Rich, CEO of Radix Big Tent and former secretary of Lord Rogers’ Urban Taskforce
- Dr Catriona Riddell, expert in strategic planning issues in partnership with local authorities
- Jackie Sadek, Director at Urban Strategy and expert in urban renewal
- Andrew Taylor FRTPI, Group Planning Director at Vistry Group
- Lisa Tye, Partner and Co-Head of Homes at Shoosmiths
- Doreen Wright, Commercial Director at A2Dominion Group
