The Urgent Need for Housing SolutionsThe Urgent Need for Housing Solutions A comprehensive housing plan is crucial to address the looming housing crisis. Labor’s aspiration to construct 1.5 million homes by 2029 demands a robust strategy that recognizes housing’s role in economic growth and social well-being. Mobilizing the Housing Sector Collaboration between the public, private, and housing association sectors is essential. Long-term lease agreements and regulatory clarity are vital to incentivize investment. Additionally, a review of funding pots and streamlining existing homes can free up capacity for new construction. Supporting Housing Associations Housing associations face acute pressure due to short-term rent caps and rising interest rates. Extending their lease agreements and providing flexibility in funding utilization would alleviate uncertainty and enable them to deliver affordable homes. Addressing New Building Safety and Energy Efficiency Regulations The escalating costs associated with new safety and energy efficiency standards require clear guidance and financial support. Housing associations need clarity on expected standards and assistance to meet the increased expenses. Planning Reform Empowering local authorities with specific targets and tenure breakdowns will expedite the planning process. Additionally, examples of successful initiatives, such as estate regeneration and housing-first models, should be promoted and replicated. Public Investment and Collaboration Public investment is crucial for boosting housing production and stimulating economic growth. Pension funds and investors are eager to participate in delivering affordable and private rental homes. Collaboration among stakeholders is essential to achieve the ambitious goal of 1.5 million homes. Conclusion Labor’s commitment to housing must translate into immediate action. By working closely with the sector, the government can implement effective solutions and ensure that everyone has access to safe, affordable, and sustainable housing.
The new government’s plan for the first 100 days must put forward the well-founded arguments that housing drives economic growth and that more homes are needed to solve the social problems we face. Only then can we achieve the goal of building 1.5 million homes by 2029.
Geeta Nanda is Chief Executive of Metropolitan Thames Valley Housing
Labour has inherited a housing crisis of all kinds. There are 142,000 children in temporary accommodation, thousands sleeping rough, a private rental market that offers no security for tenants, a generation feeling excluded from home ownership and older people without housing options. There is no single solution to the housing crisis, so mobilising the public, private and housing association sectors is essential. We can’t just wait for new cities to be built and graduates to get their degrees; we need an alliance to show what can be done now and in the future.
For housing associations, the government should start with a long-term lease agreement that gives registered providers and investors the confidence to plan how they deliver services and build homes. The regulatory and financial environment has put housing associations under acute pressure. The short-term caps and reductions in social rent have led to huge uncertainty about investment, particularly as interest rates have risen.
We also need to review all funding pots to make the most of them, providing flexibility in the use of existing homes to create capacity to build new homes. We need to tear up the rules on Right to Buy receipts, building safety grants, decarbonisation and new homes, Section 106 agreements etc and instead ask how we can best use these funds to build more homes quickly and invest in existing homes.
We also need clear guidance on social housing regulation and the future standards we can expect. The cost of meeting new building safety and energy efficiency rules has skyrocketed. Since 2016, expected rental income has fallen by £3bn, while spending on repairs and maintenance has risen by £2.4bn since 2021.
Construction recovery: increasing social housing construction can boost the economy
Planning reform is central and will certainly help to free up hundreds of thousands of homes and investments that are being held back by our planning system. It is essential to give the targets back to local authorities, but we also need clarity on what those targets include by tenure.
Public investment is essential to the recovery of housing production and to support much-needed economic growth. Research from the National Housing Federation this year shows that a major expansion of social housing construction could deliver tens of billions of pounds in social value and economic growth, including the creation of 140,000 jobs, resulting in a £12 billion gain for the taxpayer over 30 years.
The government will be helped by the many examples of what works well. Following the example of London with estate regeneration and development companies, there should be more flexible, long-term investment in regeneration to deliver homes on all types of plots that will meet high standards well into the future. These could be prime candidates for Labour’s new cities, to regenerate spaces and deliver homes, amenities and infrastructure.
The housing-first approach to tackling homelessness, supported by Crisis, has been a resounding success in Newcastle and London, demonstrating that providing a home first, with wrap-around support, leads to successful tenancies. Meanwhile, the Older People’s Housing Taskforce has been working to expand housing and support for an ageing population. Pension funds and investors also stand ready to support additional delivery of new homes in the affordable and private rented sectors.
To build 1.5 million homes within five years, a long-term plan is needed. To achieve this, we need to take action now.
In government, Labour must immediately begin working with the housing sector to deliver appropriate and timely solutions. The housing sector stands ready to work with government; we must be heard now.
Geeta Nanda is CEO of Metropolitan Thames Valley Housing
