A housebuilding landscape – how do we move forward?

On 7 March 2024, our Builder’s Breakfast seminar held at Writtle University College witnessed an impressive turnout, drawing together key stakeholders from the housebuilding industry to engage in a conversation about pressing housebuilder issues and future prospects. Under the adept guidance of our hosts Paul Skelton from the Housebuilder Team and Tom Newcombe, Head of Planning, the seminar provided a platform for an insightful discussion led by speakers representing various facets of the industry.  

Exploring diverse perspectives

Paulette McAllister, Programme Director of the Strategic Housing Development Programme at Brentwood Borough Council, shared her knowledge of the regulatory and political landscape affecting housing delivery. Timothy Chilvers, Operations Director at Anderson Development Group, offered his perspective as a leading housebuilder. Paul Edwards, Chief Executive of CHP, provided insights into the challenges and opportunities facing Registered Providers (RPs) and Lee Daniel, Business Development Director at Close Brothers, shed light on the financial aspects shaping the industry’s trajectory.  

Addressing critical issues 

The panel delved into a range of critical topics, including challenges surrounding housing delivery, potential legislative changes, and the evolving political landscape. With housing affordability and availability becoming increasingly pressing concerns, the discussion provided a platform for stakeholders to exchange ideas and strategies for overcoming these challenges. The rising public awareness of housing issues further underscores the urgency of finding sustainable solutions to meet the growing demand for housing across the UK. 

Key takeaways from the questions asked of our panellists

Q1. To what extent do we think that the mechanics of our planning system is preventing the delivery of housing and what can be done from a process perspective?  

• The planning system does not need major reform, but the current process often takes too long and therefore it is questioned whether it is fit for purpose.  

• The 1947 Town and Country Planning Act intends to bring order to the planning system, but decisions remain slow and bureaucratic as there are resource limitations and a lack of urgency and awareness of economic costs. There needs to be a willingness to meet deadlines while taking into consideration the social and economic costs of delays.  

• Planning is not inherently flawed; initiative-taking planning officers can make the system work effectively. 

Q2. In terms of planning policy what needs to be changed and how are local and national planning policies affecting things?  

• The definition of affordable housing within the National Planning Policy Framework needs to be more flexible to address gaps in the benefit system.  

• The HBF State of Play 2024 report indicated that planning is a key barrier for developers. This is further complicated by the housing ministerial turnover in the last 13 years.  

• There is a need for a defined, consistent approach to planning applications amidst complexities like S.106 Agreements, Community Infrastructure Levy and Biodiversity Net Gain. Biodiversity Net Gain requirements pose additional burdens on the development sector which may affect housing delivery and will only primarily benefit ecologists.  

• Training junior planning officers is extremely challenging due to the frequent changes so therefore a more stable system is required.  

• The planning system is naturally expected to address multiple policy objectives, but some may be better managed and funded directly by the Government.  

Q3. Is the Levelling Up and Regeneration Act a move towards national development management policies? Is this an innovative idea from the perspective of taking the policy burden out of local plans or speeding up plan making decisions?  

• Local plans often take too long to produce, which could further delay the process if local input is reduced.  

• In the production of local plans, there are many stakeholders involved which may cause the main objective to be overlooked.  

• Developers face shifting timetables due to change in resources and policies, emphasizing the need for stability and consistency.  

• From a national and local perspective, maintaining a stable and unchanged system for as long as possible is desirable to ensure effective planning processes.  

Q4. From the point of financial viability and risk in development, what are the challenges and what should be done?  

• Fluctuating house prices and rising building costs have squeezed the housebuilder sector, especially smaller developers.  

• Smaller developers face challenges when buying land with planning uncertainties, as the market can significantly change during the length of the planning process.  

• National housebuilders who tend to be more financially independent can afford to wait for planning approvals while smaller developers struggle to secure land and navigate planning hurdles. 

• Transparency among developers, local authorities and other stakeholders is crucial for fair land pricing and effective collaboration.  

• More funding is needed to ensure future savings for the public and enable the delivery of social rent ensuring it aligns with developers long-term business plans.  

• Maintaining a positive relationship with the Local Planning Authority (LPA) is essential for receiving support when needed.  

Looking ahead 

As the housebuilding industry navigates a complex landscape shaped by economic, social, and regulatory factors, events like our Builder’s Breakfast seminar serve as invaluable forums for fostering dialogue and forging strategic partnerships. By harnessing the collective expertise and insights of industry leaders, stakeholders can work collaboratively towards creating a more inclusive, sustainable, and resilient housing market for the future.  

With the announcement that the General Election will take place on 4 July, it will be interesting to see the importance that each political party places on these fundamental issues. Watch this space!