Comm Comm’s Chris Sharp takes a look at the planning policy highlights from the Conservative Party Conference
Comments By Planning Minister, Rachel Maclean
This week, Rachel Maclean, the planning minister, participated in a panel discussion on the planning system and addressing the UK's housing needs.
In brief, her stance can be summarised as follows – she advocates increased home construction and aligns with the "Yes In My Backyard" (YIMBY) perspective on many fronts.
However, it is the Prime Minister who holds the ultimate authority to steer housing growth and presently, this doesn't seem to be among his foremost priorities.
Additionally, the frequent turnover of planning ministers is noteworthy. When Maclean assumed her role in February 2023, she became the fifteenth Planning Minister since 2010.
Nevertheless, some of the key points she raises are intriguing and can be found below.
Help To Buy Will Not Be Revived
After numerous years of the government's efforts to address housing affordability through incentives, Maclean appeared to imply that schemes like Help to Buy and First Homes do not resolve the problem and that only increasing the supply of homes will be effective. On this, Maclean said:
“If we incentivise through Help to Buy, First Homes [for new build homes], or any of these schemes, that’s great for those people, but it inflates the prices. Demand has to be balanced with the supply side.”
The number of first-time buyers who used the Help to Buy programme but are now behind with their home loan payments, runs into the thousands, the Daily Telegraph reports.
London Housing Crisis
Maclean acknowledges that the housing crisis is most acutely felt in London. On this matter, she has declared that the Secretary of State is prepared to intervene to ensure that the London Plan delivers a greater number of homes:
“We clearly have seen a failure of London to deliver the houses that are needed, especially compared to the scale of the affordability element in London. It is quite extraordinary to see the mismatch between salaries and earnings in London and the ability of young people, in particular first-time buyers, to buy or rent a home.
“It is therefore right that we take those long-term decisions now, that the Secretary of State uses the powers that he has those legal powers, if necessary to intervene, to make sure that that London plan delivers a lot more housing.”
The London agenda seems to be politically driven against Labour Mayor Sadiq Khan, particularly with elections due next year.
Cambridge – A Key For Growth
As recently outlined by Michael Gove, the Cambridge area is a crucial location for achieving the government's housing and economic growth objectives. On this matter, Maclean commented:
“Cambridge is clearly a national asset. It is essential to the economic growth of the whole of the United Kingdom. It is in our national interest to develop Cambridge and its biomedical, its tech, its life sciences hub - because that is going to spread prosperity around the country.
“But what is holding it back now is the lack of space. It is the lack of ability for housing and laboratories to be built. So that's why we are working again together with our partners Homes England and others to bring about this vision where we can see Cambridge expanding and let's be clear, not everybody will be happy with that - there will be people who object to it.”
The government's 'Building Beautiful' agenda will play a central role in the growth plans for Cambridge, as stated by Maclean. She also emphasised that both brownfield and greenfield sites are necessary to realise the government's aspirations for the city. She remarked:
“We are sticking to our vision of this being an urban quarter with beautiful design at the heart of it with placemaking as its central vision - yes, using brownfield but also maybe using greenfield in some areas because you simply cannot expand Cambridge without doing that in some way.
Interestingly, despite considerable local opposition to constructing new homes in Cambridge, it appears that the government is resolute in countering NIMBYism and intervening as necessary. Maclean commented:
“Yes, we have to do it with community consent and I'm sure we'll talk more about that. But it is a strategic decision for this government to intervene in a place like Cambridge and I therefore think it is the right thing to do.”
Brownfield Ambitions
As previously mentioned, when discussing the growth of Cambridge, Maclean stressed that the housing needs of the UK cannot be exclusively fulfilled by brownfield sites. Regarding this, Maclean commented:
“We are kidding ourselves if we think we can meet the housing needs of the nation just on brownfield land. We have to go much further than that.”
Housing Targets
Despite the Housing Secretary's announcement in December 2022 that the government would no longer pursue mandatory housing targets, Maclean asserted that the government has not abandoned the targets (as of now), and she added that they must maintain housing targets to deliver the necessary homes:
“And before anyone asks me, can I just say very clearly, no, we have not dropped housing targets.
“We still have them, we must have them. It is an urgent need for us to build the houses that we need across the country. And we will continue to make sure we do that.”
Not Just A Young Person Housing Crisis
Maclean acknowledges that the crisis doesn't only affect young people who are renting or trying to get on the property ladder but also older individuals seeking to downsize:
“We do recognise the challenges, not just of younger people, but also of older people. To put this in context, I'm a mum of four, I have four children, all of whom are working professionals. Three live in London and are in the private rented sector, one's a homeowner. So, I get this on all sides. I've also got my mother and father, both elderly, both needing very complex care. They can't find a property and can't downsize.”
Land Tax
Maclean mentioned that the government is examining the possibility of an infrastructure levy through the introduction of a land tax. This would result in more funds going to the government, to be allocated within local communities and fewer funds retained by landowners once the land receives planning permission and appreciates in value. In relation to this, Maclean commented:
“Essentially, we know at the moment when planning permission is granted, the land price goes up and where does that land price go? It goes to the landowner. We need to capture that and allow that to be spent in the community. We currently have different ways that's done. They frankly don't work effectively everywhere. So that's why we're looking at this infrastructure levy concept.”
The levy would be introduced as part of the Levelling Up and Regeneration Bill. More about the Community Infrastructure Levy, which would replace Section 106 requirements, can be found here in a government press release: New levy to make sure developers pay fair share for affordable housing and local infrastructure - GOV.UK (www.gov.uk)
Comments By Housing Secretary, Michael Gove MP
Whilst Maclean focussed on the details, her boss, Housing Secretary, Michael Gove, provided the broader vision to his housing approach in a speech given at the conference. The speech lacked detail and included no new policy announcements.
The Need For New ‘Attractive’ Affordable Homes
Michael Gove reiterated the necessity for new homes, although he did not reference any specific targets. Instead, he focused on the requirement for attractive and affordable homes. This once again underscores his commitment to building in an aesthetically pleasing manner. It remains uncertain whether such homes, if offered at market value, can be considered affordable without a sufficient supply. Moreover, there were no particulars provided on how to address issues related to the supply side. Concerning the demand for new homes, Gove stated:
“We need to ensure that every family has a safe, decent warm home. We need to ensure that many more young people can have a home of their own and we're on track. There are a million new homes in this Parliament.
“But we need many more. Our long-term plan for housing will deliver the attractive affordable new homes that we need.”
He added:
“We will ensure that our new homes are energy efficient, zero carbon ready and built to the highest aesthetic standards.”
Prioritisation Of Brownfield Land
In contrast to his planning minister, who mentioned that brownfield land alone cannot resolve the housing issue, Gove did not make a reference to this. Instead, he reiterated the importance of preserving the greenbelt. Additionally, he highlighted that brownfield development played a crucial role in reducing commuting times and rejuvenating high streets. Regarding this, he stated:
“We will build in the heart of towns and cities and on brownfield land. Because that cuts commuting times, it helps revitalise high streets and it protects the greenbelt.”
The Party Of Nature And Beauty
Labour has now pledged to grant local authorities increased authority to develop on greenbelt land, particularly in areas that may not be considered aesthetically appealing. However, the Conservatives appear to exclude any form of development on greenbelt land, with Gove aligning himself with the principles of preserving nature and beauty. There is no mention of addressing the issue of younger generations struggling to afford homes; instead, there is a reference to ensuring that children can appreciate fields, meadows and forests. Gove implied that Labour, with its planning agenda, would diminish the opportunity for children to delight in such natural attractions. Regarding this, Gove stated:
“Because we're not just a party of opportunity and ownership. We're the party of beauty and nature. And that is why we will resist the proposals of the Labour Party and now the Lib Dems too, to build all over the greenbelt and to destroy precious natural habitats. Labour must not be allowed to take our fields, meadows and forests away from our children and we will stop them.”
Notably, Gove also singled out the Liberal Democrats. This followed a notable victory by young activists at their conference who passed a motion, securing the party's commitment to constructing 380,000 homes annually against the wishes of leader, Ed Davey. There was speculation that Davey wished to abandon this target to appeal to rural constituencies in the forthcoming election. This could indicate that the Conservatives might argue that the Liberal Democrats’ housing targets will result in detrimental impacts on rural communities.
How The Parties Compare
When it comes to the Conservatives, prioritising increased housing supply doesn't seem to be at the forefront of their agenda. It was notably absent from leader Rishi Sunak's conference speech and he has previously affirmed the Party's commitment to preserving the countryside and avoiding its excessive urbanisation. Under Sunak's leadership, the Conservatives have all-but eliminated mandatory housebuilding targets, a move aimed at placating NIMBY MPs within the party.
In contrast, Labour's housing rhetoric appears more ambitious, although the party has exhibited inconsistency. In 2021, Labour opposed ambitious planning reforms that could have facilitated increased home construction. More recently, Labour has made efforts to obstruct Conservative initiatives to ease restrictions on nutrient neutrality, a move that could potentially unlock 140,000 homes. We now await Labour’s Conference to see if any new concrete policies are announced – more updates to come.
The Liberal Democrats find themselves divided on planning matters. While many of its members, particularly the youth wing, are determined to promote greater home construction, the party's leader and numerous other influential figures are staunchly opposed to such plans.