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ARE COUNCILS DOING ENOUGH TO PROVIDE THE UK WITH ENOUGH NEW HOMES EVERY YEAR?

While the Government may be setting ambitious housing targets as a means to combatting the increasing shortage of housing across the country, recent reports have brought to light the failure by some councils to provide enough new homes.

The data has been put together by the Ministry of Housing, Communities and Local Governments, and shows that 108 local authorities have failed to meet the target of 95% delivery. According to the new Housing Delivery Test, they must now explain why they missed their targets and how they will address this failure.

This is the first time that figures from the new Housing Delivery Test have been published as an incentive for councils to improve upon their housing delivery. The figures have been calculated using the numbers of total net homes delivered over a three year period which is then divided by the number of homes required over a three year period.

These figures brought to light that another 87 local authorities had failed to deliver 85% of the homes required and will now be subject to a buffer which requires them to provide an additional 20% on top of their five year supply. In this instance, there were no boroughs that delivered less than 25% of their housing need, meaning none will face the ‘presumption in favour of sustainable development’ penalty, however the threshold for the penalty will increase to 45% in November 2019 and 65% in November 2020 in an effort to keep councils building.

The National Federation of Builders (NFB) recognises that the Government are taking steps to provide incentives for councils to build. Chief Executive, Richard Beresford, says “since the carrot of meeting housing need themselves is not enticing enough for local planners, the Government’s stick of penalties and buffers is clearly required. We have a housing crisis and the Government is taking appropriate steps to fix it”.

While these new penalties will certainly go some way in ensuring more homes are provided each year, they’re not taking into account the continuing lack of suitable land being put forward for residential development each year. In order to get Britain building, land owners across the country need to be providing local authorities with the appropriate spaces to build.

At Intro Crowd, we’re attempting to help ease the strain on the housing market by giving qualified investors the opportunity to collectively fund the purchase of strategic land sites through our online platform. These sites are greenfield in nature, and have had no prior development. The sites are typically located next to an existing settlement, and with good road access as well as access to amenities such as public transport, medical care, shops and schools, are often considered sustainable which can be attractive to house builders.

Once these sites are funded through our platform, our experienced planning team takes them through the planning process and, if successful, will then aim to sell them on to a house builder for residential development thus increasing the number of new homes.

For more information on anything mentioned above, or to learn more about Intro Crowd and what we do, please do not hesitate to contact us today on +44 (0)20 7118 4040 or via email at incrowd@introcrowd.com

This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.

In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.

No responsibility or liability is accepted by Intro Crowd or Sapia Partners LLP for reliance on the contents of this article.

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