This website uses cookies so that we can provide you with the best possible experience. If you continue to use this site we will assume that you are happy with this. You can find out more about how we use cookies here. If you would like to know more about cookies, or how you can delete them, click here.

Vulnerability of developers post-Brexit put affordable housing at risk, RTPI warns

20 July 2016

The RTPI is urging the Government not to repeat the same mistakes that allowed affordable housing schemes to stall after the 2008 financial crisis.

Trudi Elliott, RTPI Chief Executive, said:

“Rightly or wrongly, the job of housing the nation has up until now fallen largely to private developers. This means that their vulnerability post-Brexit is a national issue which policy makers need to address. We must learn the lessons from the 2008 financial crash and cannot let the challenges that major house-builders will face in a downturn result in affordable housing being dropped.

“Too much planner, developer and councillor time was wasted during the post-crash recession arguing over which element of a permitted housing scheme should be cut to make it stack up financially. Too often it was affordable housing, too often the resulting scheme was poorer for it. In order to avoid the same public vulnerability to the shocks suffered by large house-builders, we must find innovative ways of funding the affordable housing element of consented sites.

“The new Minister for Planning and Housing hit the nail on the head when he said we need to ‘work with councils, housing associations, developers, investors and local communities to make sure we build the homes we need with the mix of tenures that people want…’ It is exactly this pragmatic approach which works across and leverages the various public and private sector players that we need now.

It is exactly this pragmatic approach which works across and leverages the various public and private sector players that we need now.

“Market behaviour is driven by the existing housing stock, the structure of the rental market, taxation and housing benefit policy. We must recognise the true value of planning in creating certainty and shaping markets that work for everyone.

“The Minster’s first statement rightly recognises what needs to be done. Now let’s do just that.”

Read Trudi Elliott's blog on 16 practical ideas to avoid a post Brexit housebuilding slump

 

The Prime Minister's vision of "a country that works for all" signals the time for a wider debate on what kind of planning systems we need. Tell us your views by 31 July by completing a short survey.