Breaking finance and business news, tax information, jobs and more for finance directors and senior finance professionals.

UK government out of touch on housing

Written by Gary Howes

Wednesday, 03 September 2008

South East Assembly claims government has set unrealistic housing objectives.

Today claims have been made that central government is trying to overrule local authorities on new house building targets.

Cllr Paul Carter, chairman of the South East England regional assembly and leader of Kent county council made the claims today - at a time when the governments actions on housing are still under intense scrutiny in the wake of yesterdays economic rescue plan.

Carter said, "the government’s obsession with increasing housing numbers in the South East defies all logic. As with many obsessions, it fails to take account of the real world – for example the need to invest in infrastructure to support new homes, and a declining market where house builders are not building and mortgages are hard to find.

Unrealistic targets

It is claimed governments drive for more homes continues - after a delay of more than two years, the government has now published its views on the Assembly’s 20-year vision – the South East plan.

Ministers want to see at least 662,500 new homes built in the South East by 2026. This is 4% above a panel of inspectors’ recommendations, suggested only 12 months ago, and 15% above those in the Assembly’s draft plan.

"The government seems determined to show it has the power to override the region’s own realistic housing targets that balance growth with the need for decent infrastructure and protecting the environment. These new government targets threaten to destroy that balance," continued Carter.

Councils overruled

The Assembly’s original target of 578,000 homes was agreed after three years of extensive research and consultation. It is believed government is increasing housing numbers to a level that threatens to be undeliverable – particularly in the current economic climate.

Carter says, "it is a clear example of the centre trying to overrule the local. It is local authorities who led the work on the Assembly’s South East plan and created a strong evidence base, only to find that our needs don’t match the government’s view of the world. It has wasted our time if it intends to take no notice of our work."

The Assembly want to see strong commitments by government to increase the infrastructure in a viable investment plan for the South East.

Already there is a £400m shortfall in investment for affordable housing over the next three years, and this excludes the cost of transport, education and health improvements that will be needed to support the new homes we are expected to build.

Planning ahead

And counting that cost will become increasingly difficult with new rules which mean that local authorities will no longer be able plan housing delivery with certainty: house building targets are now set as minimums by government.

"The government has said that housing targets are no longer long-term goals – they should be seen as a starting point. This creates serious problems for local authorities trying to plan ahead for their communities’ needs. If we agree to targets becoming minimums, we will be unable to carry out realistic assessments of the environmental impact of new homes and the infrastructure they need," concludes Carter.