Will the Governments plans to solve the housing crisis inflate the price of Land in the Essex?

Posted in: Auction News, General News

As we are all aware the government has just released the White Paper for their plans to fix the UK’s broken housing market outlining a clear plan for the future. This paper explains plans to help developers and housing associations build more affordable homes as well as providing more help to buyers looking to get onto the property ladder which over recent years has been so difficult to do. However, these plans beg the question, will this simply push the value of Land in counties surrounding London, such as Essex, up? And if so, who will really benefit from these changes?

 

Theresa May MP Prime Minister states in her foreword  “Our broken housing market is one of the greatest barriers to progress in Britain today”. The Prime Minister continues “it is difficult to get on the housing ladder, and the proportion of people living in the private rented sector has doubled since 2000”. This is all true and those within the property industry have seen vast declines in first time buyers out there buying property, and those who are able to get onto that ladder are usually doing so with the help of the bank of mum and dad.

The Prime Minister goes on to say ”I want to fix this broken market so that housing is more affordable and people have the security they need to plan for the future”

Good news I am sure you will all agree, but how will they do this?

The PM explains “The starting point is to build more homes. We need to build many more houses, of the type people want to live in, in the places they want to live. To do so requires a comprehensive approach that tackles failure at every point in the system. Second, we need to ensure that homes are built quickly once planning permissions are granted and third, we will diversify the housing market, opening it up to smaller builders and those who embrace innovative and efficient methods”

Theresa May also plans on “improving safeguards in the private rented sector, and doing more to prevent homelessness and to help households currently priced out of the market”.

You cannot help but wonder if this has all been said before so what really is the plan here to finally solve the broken housing market? Well I will not outline the entire plan as it is over 106 pages but here is a very basic summary of what to expect.

 

  • Step One – Planning for planningthe right homes in the right places.

Making sure all local councils have up to date plans that decide where developments should go

Simplify Planning ensuring plans start from an honest assessment of the need for homes

Clarifying what land is available for new housing through greater transparency over who owns land and the options held on it

Making more land available for homes in the right places by maximising the contribution from brownfields and surplus land

Maintaining existing strong protections for the Green Belt, and clarifying Green Belt boundaries

Making better use of the land by encouraging higher densities, where appropriate, such as urban locations

  • Stepweb_HouseConstruction_iStock_16280983_LARGE 2 – Building homes faster

Provide greater certainty for authorities that have planned for new homes and changing the way that land is assessed

Boosting local authority capacity and capability to deliver, improving the speed and quality which planning cases are handled

Ensuring infrastructure is provided in the right place by targeting the £2.3bn housing infrastructure fund

Securing timely connections to utilities so that this does not hold up getting homes built

Supporting developers to build out more quickly by tackling unnecessary delays caused by planning conditions

Holding local authorities to account through a new housing delivery test

  • Step 3 – Diversify the market

Backing small and medium-sized builders to grow, including through the Home Building Fund

Supporting custom-build homes with greater access to land and finance

Bringing in new contractors through our Accelerated Construction Programme

Encouraging more institutional investors into housing, including building more homes for private rent

Supporting housing associations and local authorities to build more homes with £7.1bn worth of funding

Boosting productivity and innovation by encouraging modern methods of construction in house building

  • Step 4 – Helfirst time buyerping people now

Continuing to support people to buy their own home through help to buy and starter homes

Helping households who are priced out of the market to afford a decent home that is right for them through our investment in the Affordable Homes Programme

Making renting fairer for Tenants

Improving neighbourhoods by continuing to crack down on empty homes

Encouraging the development of housing that meets the neds of our future population

Helping the most vulnerable who need support with their housing

 

Well this is quite a list and even more of a statement from our government but what could potentially solve the market crisis could also force the price of land sky high.

If developers and local housing associations are being heavily funded and incentivised, smaller builders encouraged, planning becoming quicker while encouraging more units on each plot and with the local authorities releasing more brownfields and potentially green belt sites for development this is likely to create a boom in that section of the market.

If you are a Land owner then this is great news, however, this could also end up with us straight back to where we started only this time being builders not buying land due to the huge inflation of prices

It will be interesting to see how this all plays out and if the government will create any plans to stop inflation of land value or if any of these plans are actually actioned, after all, the majority of the local authorities have already had 12 years to produce up to date plans to decide where developments should go with 35 local authorities still to hand in these plans.

Time will tell if these plans will work, let’s all hope they do and we see the majority of the population as home owners in the years to come.

 

For the full White Paper on fixing the broken housing market visit the government website.

Click here to see the full White Paper report