The Housing & Finance Institute has called for a fairer share of housing money to be given to England’s towns, counties and districts.
In their new report, ‘From the Shores to the Shires’, the HFI says England’s regional towns and councils must get a fairer deal when it comes to the allocation of housing funds.
The Institute says it is England’s regional towns and councils that are leading the way on house building and they should be rewarded with more resources. It argues that there has been a longstanding emphasis on giving a bigger share of the money to big cities and metropolitan areas who are only responsible for around 30 per cent of new homes.
HFI chief executive Natalie Elphicke OBE commented: “Following the EU Referendum, it is clear that things need to change if we are going to succeed in building a Britain that works for everyone. This must include rewarding energetic councils across England who toil to make the housing difference but who don’t have the comfortable cash flow or big balance sheets of the largest cities and housing associations.
“Change is afoot in our coastal communities, the country villages and market towns, the post-industrial heartlands and historic cities and counties of England. There is an ambition to build and shape housing choice for local communities. Too often it has been the noisy major metropolitan cities or the massive housing associations already awash with cash who ask for even more.
“Yet the beating heart of sustainable housing delivery is in the counties, ordinary towns and districts of England. It's time to harness the energy across the country in building homes and regenerating communities. The Government needs to put more of its housing money where the opportunity to deliver is and that means right across the country.”
Research published in the report shows that around 70 per cent of new homes and homes permissioned for planning are currently in the district and unitary councils. That far outweighs the combined contribution of the London and metropolitan councils, who currently get the lion’s share of cash and attention.
The Institute has highlighted housing zones to demonstrate this skewed funding. London has secured almost 100 times as much initial funding in this area than the rest of England, but will deliver only twice the number of homes.
London has secured £600 million of housing zones allocations, which they are planning to build 75,000 homes with. This is compared to just £6.3 million allocated for the rest of England in the same period, which will result in 34,000 new homes.
It is calling for regional councils to keep the cash from any valuable houses they sell, to be exempted from the high value assets levy and given extra cash allocations and financial support if they can show they can and will deliver more homes.
Natalie Elphicke continued: “If a council can show it is housing business ready, has a good track record and will commit to minimum housing targets, why shouldn’t it get the type of individual deals, powers and money given to the big devolved city authorities.
“It isn’t the case in housing delivery that biggest is best – some of our coastal communities, country villages & market towns, post-industrial heartlands together and historic cities and counties of England are absolutely brilliant at making housing delivery happen and are delivering the majority of our new homes. If a council knows what it is doing and is doing a good job in housing delivery, government should give it greater support and resources. That should apply to smaller councils too.”
The HFI has also launched a new book that provides councils with a ready-made strategy for building more homes, more quickly. The strategy is designed to help councils deliver more homes by fully using their assets and resources and collaborating across the public and private sector.
