Posted on January 16, 2013

AspinallVerdi and Dr Rachael Unsworth were commissioned as part of the RegenMomentum programme to research the question, ‘does affordable housing planning policy act as an impediment to housing delivery and is there a better way of regulating the market?’.  

In a period of growing demand, the government aimed to secure affordable housing by regulating the mix of housing provided by developers.  The requirement has often been implemented without sufficient regard for the particularly circumstances for individual communities.  Ironically, the supply of affordable housing became dependent on rising prices.  In the recession, hundreds of housing sites have stalled, and this policy – with its associated uncertainty and burden on developers – is now an impediment to a recovery in the market.

Our report advocated a fundamental re-think of the financial, institutional and planning system, to improve the possibility of households gaining access to and being able to retain their position in housing.  Specifically considering the North of England, it includes both short term interventions and a range of innovations to be put in place over the longer term.

There needs to be a freeing up of housing supply to remove barriers to change and dismantle distortionary practices which inhibit an efficient market.  But this needs to be coupled with measures to alter controls on both the supply and demand sides, in order to limit perverse outcomes and where possible to reduce socio-economic and geographical disparities.  There needs to be a greater emphasis on the growing role of the rental sector and institutional investment in housing, and a much greater role for both co-operative and mutual housing options, which have strong roots in the North.

This is about ensuring that there is a range of products and tenures which enable better access to housing, and with an emphasis on improving existing neighbourhoods.

Our report advocates a fundamental re-think of the financial, institutional and planning systems, to improve the possibility of households gaining access to, and being able to retain their position, in housing.  In summary, we advocate:

• More ‘joined up’ thinking at the highest level – for example, house price regulation via the financial system rather than/instead of the planning system;
• A greater understanding of ‘mixed communities’ – the on-site S106 affordable housing requirement has often been implemented without sufficient regard for the particular circumstances for individual communities;
• A simplification of the intermediate sector – the intermediate sector in now the ‘mainstream’, as first time buyers particularly are thwarted by the large deposits required by mortgage lenders.

Many of the issues stem from the fact that the housing market in many of the northern towns and cities have fundamentally different characteristics to the market in London and the South East i.e. the built up area of London is vast compared to say Leeds or even Manchester and it is possible for key workers to find ‘affordable’ (in ‘normal’ market conditions) housing within commuting distance of employment opportunities in these northern cities.  The issue is often about choice and neighbourhood conditions.

To request a full copy of the report please contact AspinallVerdi on  0113 243 6644 or by emailing info@aspinallverdi.co.uk