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- £500m cash boost for housebuilding councils
£500m cash boost for housebuilding councils
| Published | 14 September 2007 |
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Housing and Planning Minister Yvette Cooper today unveiled a major £500m package of proposals to accelerate the building of the homes families and first-time buyers desperately need - ensuring both that new homes are greener and the focus is on brownfield land.
A major set of incentives, provided through the new Housing and Planning Delivery Grant (HPDG), will reward councils which speed up housing supply delivery and maximise the supply of building land in their areas. Local authorities which show they are leading the way in both of these, and helping to meet the Government's ambition of 240,000 new homes per year, will receive a share of the new funding incentive.
The Minister also announced progress in delivering more green homes and more homes on brownfield sites. She revealed that 200 more disused public sector sites across the country have been identified as potential sites for housing and could contribute thousands of new homes. This brings the total of brownfield sites being assessed for development suitability to more than 750.
She also revealed an enthusiastic response to the Government's challenge to the house building industry for all new homes to be zero carbon by 2016. Over 150 organisations, including housebuilders, green groups and local councils, have now put their names to the 2016 Commitment to work together to build 240,000 new zero carbon homes a year within a decade. 152 signatories, including the Home Builders Federation, Local Government Association, Green Building Council and WWF as well as individual developers and councils have now 'taken the green building pledge' and signed up to the Commitment.
Yvette Cooper said:
"Families across the country need more affordable homes. We want to give more support to communities and councils who are doing their bit to deliver the extra homes we need.
"This money is about extra support for the councils which are already doing their bit. Some of them are doing a lot of work to support additional housing, but we know that others really need to do more. I want this new cash injection to push local authorities to raise their game."
Councils will be required to identify at least 5 years' worth of sites ready for housing and a further 10 years' worth for future development. A lack of suitable development land is often cited as the reason for blockage in the delivery of new homes. Yvette Cooper has made clear that, while many councils are ahead of the rest in delivering more good quality homes quickly, some are failing to be proactive enough in identifying the homes their communities need.
The Minister will propose that HPDG will be awarded to those councils which:
- deliver against their housing plans to meet local needs and meet agreed 'development timetables' to speed up new housing. The timetables will commit councils to set out clear and ambitious plans on the number and type of homes needed in a local area, including family homes; and
- identify banks of deliverable land suitable for new homes
She additionally announced that the body which will drive forward the Government's plans for housing growth will be called the Homes and Communities Agency. This reflects its role in delivering new homes and in regenerating existing and creating new communities. The agency, as announced by the Prime Minister in his legislative programme statement on 11 July, will be at the heart of Government's plans for delivering these targets and ensuring the creation of thriving communities through regeneration and renewal.
Notes to Editors
1. Today's announcements take forward the Government's commitment to build 3 million green new homes by 2020, and provide additional funding to accelerate the rate of housebuilding across the country as set out in the Housing Green Paper, published on 23 July. Further details can be found here: http://www.communities.gov.uk/housing/housingsupply/homesforfuture
2. Research from the National Housing and Planning Advice Unit (NHPAU) has shown if we don't build more homes house prices will rise to 10 times average earnings by 2026. House prices have nearly trebled in the past 20 years.
3. On 11 July, the Prime Minister announced that 550 surplus public sector land sites were being assessed to see if they are suitable for housing. Details can be found here: http://www.number-10.gov.uk/output/Page12422.asp
4. The HPDG supersedes the Planning Delivery Grant which provided additional funding as a reward for councils who had speeded up their planning decisions.
5. The HPDG will be targeted at the areas across the country where housing growth is a priority, including the four major growth areas and 49 towns and cities who have proposed extensive housing growth in their areas. Further details will be set out in a consultation shortly, including precise eligibility and allocation criteria. The first payments are expected in 2008.
6. The Housing Green paper confirmed the Government's ambition for all new homes to be zero carbon by 2016. The 2016 Commitment signatories agree that:
- by 2016, zero carbon homes are a reality at the scale required to meet housing targets;
- over the interim period new homes will meet the increasingly higher environmental standards as set out in building regulations; and
- they resolve the issues that need to be tackled to achieve the 2016 objectives.
Further details can be found here: http://www.communities.gov.uk/planningandbuilding/theenvironment/taskforce/commitment-signatories/
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