The Competition and Markets Authority has shared its “fundamental concerns” with British housebuilding in a new report. The report, culminating a year-long study of the nation’s housebuilding market, outlines how both the unpredictability and complexity of the planning system, and a reliance on speculative private development, are significantly contributing to the under-delivery of new homes.

In addition, the study found that home owners on new housing estates are paying unfair estate management fees to pay for the maintenance of amenities such as roads and has called for new consumer protections to be introduced.

The report rightly concludes that local planning departments are in many instances under-resourced, which can lead to delays in processing applications. Between 2010 and 2018, spending in local authority planning departments in the North fell by 65%, compared to a 50% fall in the rest of England. To remedy this, the Competition and Markets Authority proposes that the government could make planning fees cost-reflective and ring-fence these funds to increase planning capacity.

Along with this capacity issue, the report concludes that the planning system is currently undermining the delivery of new homes in several other ways. Firstly, due to the requirement to obtain planning permission on a site-by-site basis, housing developers are not provided with certainty or predictability as to what proposals or schemes will receive permission prior to application. Secondly, the study found that the incredibly complex and resource intensive nature of planning applications is also undermining delivery. Thirdly, the Competition and Markets Authority found insufficient clarity, consistency and strength of local housing targets, objectives and incentives to deliver on these targets.

Another important conclusion from the study is that speculative private development – where developers purchase land, obtain planning permission and build new homes without knowing who will purchase them – cannot meet housing need alone. While private development will always play an important role in delivering new homes, increasing delivery outside of this model would further help to increase the number of new homes built each year. To do so, the country needs to increase the amount of new affordable housing, as well as the number of self-build and build-to-rent homes. This echoes some of the conclusions made in the 2018 Independent Review of Build-Out Rates that called for greater diversity across the housebuilding sector to improve the rate at which new homes that have received planning permission are built.

Finally, the Competition and Markets Authority also announced that they would be opening a new investigation into possible anti-competitive practices by eight major housebuilders. The investigation will focus on whether the developers in question shared information that may undermine competition in the sector. The Competition and Markets Authority was clear to point out that they are not making any judgements yet as to whether competition law has been breached.

A summary of the Competition and Markets Authority’s report and associated policy proposals can be accessed here.

Member Engagement Manager James Bryson reports from our recent member visit to Muse and Salix Homes’ Passivhaus development in Salford.

The Northern Housing Consortium had the pleasure of bringing members together to visit Muse and Salix Homes’ brand-new development, Greenhaus, in the heart of Salford.  If you’re familiar with Salford,  you’ll know that a brand-new block of apartments popping up is not that unusual. So, what makes Greenhaus so interesting?

Greenhaus is a Passivhaus building, meaning it has been built to the highest standard of construction and energy efficiency. Whilst awareness of Passivhaus is increasing, there have been very few projects delivered at this scale in the UK. Greenhaus is one of the first multi-storey certified Passivhaus buildings and the largest certified development in the North West.

It is a testament to both Muse and Salix’s forward thinking and commitment to sustainability that this block will be delivered. As we sat in Muse’s offices listening to Simon Hourihan (Project Director, Muse) and Phil Summers (Development Director, Salix) explain the ins and outs of the development, it became clear that they do not just see Passivhaus as just a nice-to-have, or something that is worth doing every now and again.

Why shouldn’t the housing sector be building to the highest possible standards for every single new home? As Salix’s CEO Sue Sutton has explained, Passivhaus is simply “good business” futureproofing their assets from future retrofit, providing good quality housing to those most in need, lifting people out of fuel poverty and meeting their carbon reduction targets.

It was fantastic to bring so many Northern housing providers together to learn about Passivhaus, and heartening to hear others are considering their own similar developments. Hopefully we will see many more homes like Greenhaus springing up across the North in the years to come.

Find out more by reading the Real Home, Real Change case study here.

NHC and the Belong Network to collaborate around the sector’s role supporting resilient communities.

The Northern Housing Consortium is delighted to announce reciprocal membership with Belong – the Cohesion and Integration Network. As part of the arrangement, the NHC will bring members and Belong together to advance the role the sector plays in supporting community cohesion.

The NHC’s recent report Pride in Place: Views from Northern Communities underlines the important work the NHC’s membership of Housing Associations, Local Authorities and ALMO’s undertake in partnership to create stronger, resilient communities.

Through resident workshops undertaken across the North, participants told us that local ties and social connections with friends and neighbours were essential to the pride they felt in their area, and more could be done to promote neighbourliness and strengthen the relationships people have in their neighbourhood. We also know that social cohesion plays a strong role in developing social capital; the ability for people to lead healthy, fulfilling lives engaged in their local community and economy.

Entering into this timely reciprocal membership with Belong will be central to the NHC’s work ensuring our members are acknowledged and valued as vital anchor institutions, not only providing decent affordable homes but supporting the social fabric of the places they serve.

Belong are the UK’s leading membership organisation on social cohesion, with strong ties to the north being based in Manchester and having Manchester City Council as a founding member. Belong’s work includes sharing learning through member-led Communities of Practice, the Shared Ground training offer on managing community relations, and the Power of Connection toolkit which promotes cohesion through volunteering.

We look forward to working with Belong to bring their expertise on community cohesion and integration to the NHC membership; sharing learning and good practice, evidencing the important contribution the housing sector makes to this agenda, and speaking with a united voice.

Belong’s Power of Connection Workshops, book via eventbrite here, more information below:

 Volunteering provides a unique and powerful opportunity to bring people together from different backgrounds. The Belong Network is committed to supporting all volunteer-involving organisations and the wider civil society sector to make this happen.

Belong’s Power of Connection Toolkit takes you through everything you need to know to bring people from more diverse backgrounds into your organisation and strengthen the wider community around you. It’s suitable for any size organisation with any cause – and it’s FREE. Sign up for a free workshop to find out more and get started.

Workshop dates for 2024:

Thursday 7 March, 10.30am – 12pm, online

Thursday 13 June, 10.30am – 12pm, online

To join, book via eventbrite here.

For further information on Belong and their work, visit Belong’s website here.

Patrick Murray – Executive Director (Policy & Public Affairs), NHC

We’re pleased to welcome new Executive Director of Policy and Public Affairs, Patrick Murray.

Patrick joins the NHC from Department for Levelling Up, Housing and Communities where he most recently worked on the Public Bodies Review of Homes England. He previously worked on key housing policy areas in the Department including the Affordable Homes Programme. He has a broad range of leadership experience across the public and third sector. He has also worked for the Department of Health and Social Care and in the housing sector, and local Government where he was the Cabinet Member for Housing at a local authority.

He joins at a crucial time, with a general election fast approaching, and work on the NHC’s next corporate plan due to start soon.

Executive Director of Policy and Public Affairs Patrick Murray said:

“I’m delighted to join the fantastic team at the NHC. The Consortium has a great track record of supporting members to collaborate and influence on key priorities such as developing ways to meet the Net Zero challenge and making sure housing is at the heart of the Levelling Up agenda.

“I’m keen to build upon and take forward this work. This year will likely see a critical general election for housing and the North. This presents an enormous opportunity for the housing sector, and the communities we exist to serve. I am determined we grasp that opportunity with both hands.”

Northern Housing Consortium Chief Executive Tracy Harrison said:

“We’re pleased to welcome Patrick. He brings a wealth of experience and ideas and seemed the perfect fit with our values. He’s committed to working with colleagues, members and stakeholders to make a positive difference. With a general election fast approaching, he’ll play a big part in making sure housing and communities in the north are high up on the agenda of the new government.”