However, this amendment was vetoed in parliament because the terms were too loose. We recommended a far more nuanced approach as well as addressing the main source of river pollution: agriculture and water companies.
There’s a disappointing absence of any definitive climate action. Energy efficiency in homes is a quick win to improving people’s lives by creating warmer homes and cheaper energy bills.
A long-term investment in energy-efficiency and broad-spectrum retro-fits of existing housing stock also reduces our reliance on the volatile gas market, reduces expensive upgrades to our energy grid, creates jobs across the country and helps control carbon emissions.
Decarbonising the built environment sector is crucial for making net-zero progress and a lack of support in this area means it’s left to the private sector. Tax relief on machinery and tech may not be enough of an incentive.
Permitted development
Consultation will begin on new permitted development rights to allow any house to be converted into two flats, provided the exterior remains unaffected.
In July, the government also proposed more leniency in planning permission for
- Converting empty retail units into homes
- Barn conversions
- Repurposing agricultural buildings and warehouses
- Home extensions, loft conversions and renovations.
This will make better use of existing buildings and infrastructure, as well as boost housing availability. However, the concern is the quality of these conversions and potentially adding more cramped, sub-standard spaces that lack ventilation and decent insulation.
Mortgage guarantee extension
The scheme enabling buyers to take out a mortgage worth 95% loan to value (LTV), requiring only a 5 per cent deposit, is extended until June 2025.
Current affordability constraints mean the effectiveness of the mortgage guarantee scheme depends on the availability of eligible properties.
Most first-time buyers’ primary concerns are repayment affordability, preferring to save for a larger deposit where possible. Few will therefore take out the highest LTV mortgage.
A damp squib
This was a real missed opportunity by the government.
The construction industry contributes approximately 8 per cent of UK GDP, and due to lead times to deliver the end product to market, the sector is also counter-cyclical.
A proper, well thought-out approach now, would have helped boost the economy ahead of next year’s general election.
Knight Frank’s most recent Residential Land Index Report, shows the falls in house prices have lead to drops in the average greenfield and urban brownfield land values.
As our white paper points out, the issues hindering housebuilding are so intertwined and interdependent that there’s no single fix to solve the housing crisis.
If buyers can’t afford to buy houses, developers can’t afford to build them and the shortage perpetuates. Solutions have to be holistic and long-term, with joined-up thinking and strategies across all parties.
