Over the weekend the Chancellor of the Exchequer, Rachel Reeves, announced a package of housing related funding and policy changes. This included a £500m top-up to the affordable housing programme, consultation on a new rent settlement and changes to the Right to Buy scheme, reducing the discount and allowing councils to keep 100 per cent of receipts.

Northern Housing Consortium Chief Executive Tracy Harrison said:

“The £500m top-up for the Affordable Homes Programme will mean our members can continue building and is something we advocated for strongly in the run-up to the Budget.  A 5-year CPI+1% rent settlement (with a consultation including a ten-year option) will give housing providers more certainty to plan investment. Changes to Right-to-Buy should help stem the loss of social homes.

“These are all great first steps, but there’s lots of work to do to in the run-up to the Spending Review and through the rent consultation. Our members need long-term financial certainty to improve the quality of existing homes, including making them warmer and greener, and to deliver new homes on the scale required to meet government ambitions.

“At the NHC we’ll strongly advocate for investment that supports delivery in the North where regeneration matters, and HMT value-for-money rules (and their narrow interpretation) have too often locked out much needed projects. Deepening devolution, with more local control over funding, will make sure government funds make the biggest possible difference to communities in the North.”

The Affordable Homes Programme (AHP) announcement followed numerous sector reports that the current AHP was close to fully committed. In the run up to the Budget, we made this point to government, including providing data on a number of housing sites where progress had stalled due to funding uncertainty. This announcement will go some way to support affordable housing providers in the North to continue developing, while we await the full details of a post-2026 Affordable Homes Programme in the Spring.

The Chancellor confirmed that social housing rents will be permitted to rise by CPI +1% for five years, with a consultation to launch seeking views on potential alternatives. This consultation will include potentially extending the CPI +1% rent policy to ten years, which has been the policy ask of the NHC and other sector bodies in recent months. Providing greater long-term certainty on future rental income levels will free up additional resources to invest in new and existing homes and is critical to achieving the government’s goals for social housing.

The government also announced changes to the Right to Buy scheme. Firstly, local authorities will now be able to retain 100% of the receipts they receive from any sale through Right to Buy. In addition, it has been confirmed that Right to Buy discounts will be reduced and additional protections on new-build properties will be introduced. It is hoped that these changes will both provide local authorities with greater resources to fund replacement homes following Right to Buy sales, as well as reducing the current disincentive to develop new homes that councils face, as they risk being sold off at a discount shortly after completion.

Overall, this package of changes is a strong first step in addressing some of the most immediate pressures facing the affordable housing sector, and demonstrates that the government is listening. Thank you to our members who provided detailed information to support our case to the Government to help secure much-needed funding. You can read the NHC’s full Budget representation to HM Treasury here.

Watch out for our on-the-day briefing which will cover all the announcements which will impact the housing sector in the North.

The NHC was invited to discuss the Government’s proposed reforms to social housing quality with housing minister Matthew Pennycook MP.

NHC Executive Director, Patrick Murray, attended the roundtable and shared the views of our members on how the sector can work with government to ensure a successful implementation of Awaab’s Law and wider reforms to social housing quality. Patrick also discussed the importance of regeneration, with ageing stock a key issue for northern social landlords.

Patrick was joined by a range of our partners in the sector and the discussion was constructive, with a clear commitment to protecting social housing residents from serious hazards in homes while ensuring that landlords are realistically able to meet the new requirements.

Earlier this year, the NHC submitted a response to the Awaab’s Law consultation on timescales for repairs in the social housing sector. The Government has confirmed it will bring forward legislation for Awaab’s Law in the social rented sector this autumn.

Tom Miskell, Former Chair, Northern Housing Consortium

Tom Miskell has a wealth of experience in the housing sector having undertaken various roles during his career as a management consultant, working for the Housing Corporation, a local authority, housing associations and as a board member for a number of organisations.

Tom was appointed as Chair of the Northern Housing Consortium (NHC) board in 2015, remaining in the role until 2019.

Here, he shares his insights of what he’s learnt during his career, including some valuable advice for others working in the sector today.

 

Why did you choose to work in housing?

My career in housing actually came about in a roundabout way. I started my working life in finance in the civil service. However, a job as an accountant at the Housing Corporation was my first encounter with the world of social housing and, from there, I’ve had a variety of roles. These have included being an area manager at the Housing Corporation and I was then invited to complete a secondment at Derby Council as assistant director of housing. My experience has involved working on 30-plus stock transfers for local authorities across the North and the Midlands. I moved to Pennine Housing in 2000 as finance director, at the time there was a stock transfer from Calderdale Council, later becoming Chief Executive.

Since I finished full time work, I’ve carried on in non-exec roles including a further year as Chair of Northern Housing Consortium and becoming Chair of Accent Housing.

I always had an aspiration to help people and I found that housing was a way you could do that. One of my old bosses used to say, if we invest this money in housing stock and we haven’t changed the lives of people who live there, we’ve failed. And I absolutely endorse that. It’s an opportunity to make a positive contribution to people’s lives.

I’ve had some fantastic experiences during my career. It’s been a privilege as well as a wonderful learning curve.

 

What have been the biggest challenges in housing in the North over the last 50 years?

 

Right to buy had a massive impact, as the stock wasn’t replaced and, of those properties that have been sold, many have fallen into the hands of private landlords and ended up in bad states of repair.

And demand in different areas is a challenge because we don’t have the right stock in the right place at the right time.

 

And what’s had a positive impact?

 

One transformational thing has been the housing stock transfer programme, creating housing associations from local authority stock. This brought investment in decent homes and it’s also been an opportunity to create jobs and change lives within communities.

For example, Wakefield and District Housing have taken time to develop and grow their existing workforce over the years through a range of training programmes that have delivered life changing opportunities for people.

 

What role does Northern Housing Consortium play in supporting housing in the North?

 

NHC is uniquely placed because it’s the only organisation that has the common membership between local authorities and housing associations. So it can speak holistically and look across the sector, making the case for the whole of housing in the North.
A really nice thing about NHC is its collaboration. Something I’ve seen change over the years is that, where people used to be competitive, now we see people working together, and I think NHC has played a key role in fostering this collaboration on projects that will ultimately benefit people in the North.

NHC has also been able to play the role of influencer with Government and I’ve seen that massively improve in terms of our voice being heard and amplified through the organisation’s round tables and visits from ministers and senior civil servants. It’s been a real positive shift and that momentum is continuing now, as new people join the board.

 

Can you share some highlights from your time as chair of NHC?

 

Firstly, it was a real privilege to be Chair and to work with such great people.

During that time, NHC established the Commission for Housing in the North which I had the honour of chairing and involved working with people like Lord Best and Lord Bob Kerslake. It was a real opportunity to look at what positive change we could make and it’s great to see some of the issues we picked up on, like local authorities not having sufficient resource for planning, now being addressed by the Government. The commission was an opportunity to think positively and see a way forward.

An on a personal level, after I finished full time work, I was asked to stay on as Chair of NHC for another year. There can be self-doubt when you finish full time work but on a personal level, continuing to be involved was reinvigorating.

 

Do you have any advice for others who are working in housing, or perhaps starting out in their career?

 I’ve been really lucky to be involved with lots of different organisations and I’d encourage anybody to take any opportunity to get that visibility of how others are working. You can really shape your own learning and service delivery by being willing to look outwards, and learn from others whether that’s through a secondment, short term roles or collaborating on a project.

The NHC was invited to discuss the government’s consultation on reforms to the National Planning Policy Framework (NPPF) with Housing Minister Matthew Pennycook.

NHC Executive Director, Patrick Murray, attended and shared the views of our members on what the changes to planning policies will mean for the North’s housing sector. He also had the opportunity to share our recent research on the opportunities to unlock brownfield land for homes in the North, if the adequate funding is provided.

The discussion was positive, and it was clear to see the ambition in both government and the housing sector to use planning reform alongside much-needed investment to deliver more social housing.

 

 In the briefing below NHC Senior Policy Advisor Karen Brown outlines what the key proposals in the revised NPPF mean for members. 

The new Labour Government published a draft of the revised NPPF. The Secretary of State Angela Rayner addressed Parliament to outline the reasons why change is necessary. Key amongst these is the need to increase the supply of new homes to meet the Government’s 1.5m homes target (the equivalent of 300,000 homes per year).

 

Key points in the NPPF proposals:

1. Reversal of NPPF changes made in 2023, including:

• Making the standard method for assessing housing needs mandatory for all local authorities
• Removing the ‘urban uplift’
• Strengthening the ‘duty to cooperate’ and cross-boundary strategic planning
• Restoring the five-year housing land supply requirement and the 5% buffer for housing delivery in local plans
• Removing the requirement that a minimum of 25% of affordable housing units should be First Homes
• Replacing ‘beauty’ standards with ‘well-designed development’

2. Setting out expectations for Local Plans by every local authority

3. Defining ‘grey belt’ land with ‘golden rules’ such as a 50% requirement for affordable homes. Expectations for brownfield planning approvals will be strengthened.

 

Housing targets

A core change in the draft NPPF includes a new Standard Methodology for calculating Local Housing Need (LHN). Underpinned by the Government’s ambition to deliver 1.5 million homes over the Parliament, this results in an increased target of 370,000 homes per annum across England – up from 300,000 under the current method.

Instead of household projections, the new method uses a stock increase approach – a baseline set at a percentage of existing housing stock levels, driving a level of delivery proportionate to the existing size of areas. The revised method has as its starting point a multiplier of 0.8% of existing housing stock each year, plus a revised affordability adjustment of 0.6% (previously 0.25%). LPAs can still propose a lower figure due to local constraints and conditions e.g. major flood problems.

The proposed revised method for the Northern regions is:

	Current Method	Proposed Method	Average Annual Net Additions (2020/21-2022/23)
North East	6,123	12,202	8,466
Yorkshire & Humber	18,699	27,433	17,602
North West	21,497	37,817	27,742
England	305,223	371,541	228,871

The proposals remove the previous 40% cap on any uplift above the previously adopted local plan housing figure as well as removing the 35% uplift that applied to the 20 largest cities.

 

Affordable Housing and tenure mix

For affordable housing the requirement will be widened for planning policies to specify the type of affordable housing required, including the minimum proportion of Social Rent homes required. On sites in the Green Belt, for major developments, there is a proposed target of 50% affordable housing with an appropriate proportion being Social Rent, subject to viability.

The proposals remove the requirement that a minimum of 25% of affordable housing units secured through developer contributions should be First Homes.

 

Land Use and Green Belt

The proposed NPPF attaches great importance to Green Belts.

The consultation seeks to identify a new classification of ‘grey belt’ land within the Green Belt, to be used in the planning system through both plan and decision-making to meet development needs. There are proposed ‘golden rules’ for development on land released in Green Belt – 50% affordable, with appropriate proportion being social rent, but this would be subject a viability test using a new Green Belt benchmark land value. Proposals for compulsory purchase for housing are also outlined.

The proposals re-introduce the requirement for all Local Planning Authorities to undertake a Green Belt Review as part of their Local Plan preparation where housing need cannot otherwise be met.

The proposals establish a sequential test – brownfield sites should be prioritised, and to support release in the right places, first consideration will be given to PDL within in the Green Belt, before moving on to other grey belt sites, and finally to higher performing Green Belt sites where these can be made sustainable.

Government defines grey belt land as, ‘land in the green belt comprising of previously developed land and any other parcels and/or areas of green belt land that make a limited contribution to the five green belt purposes, excluding areas or assets of particular importance.’

The proposals seek to broaden the existing definition of brownfield land, with a strengthened expectation that applications on brownfield land will be approved, with the consultation stating, ‘the default answer to brownfield development should be yes.’

 

Local Plans

The new NPPF aims for universal plan coverage “as quickly as possible” and “within this Parliament.”

The publication date of the new NPPF (publication date + one month) will trigger the application of new figures, depending upon the stage of a Local Plan adoption – so the new figures will likely be enforced by the end of the year.

There are obligations on plan making authorities to collaborate. The plan making authority is obligated to cooperate and make sure that their plan policies are consistent with those of other bodies, promoting a more strategic approach to planning. The initiating plan making authority will assume responsibility for making an informed decision based on cross-boundary matters.

 

Fees and cost recovery

The consultation document recognises that local planning authorities will need to be appropriately resourced.

A chapter of the consultation proposes new fee structures for planning services and also options for localisation of planning fees which would require primary legislation to establish.

 

Next steps

Whilst the Secretary of State was keen to emphasise the need to avoid too much reform there is more to come. Notably the measures in the Planning & Infrastructure Bill, consultation on National Development Management Policies, Right to Buy consultation and the first round of New Towns designations. A long-term housing strategy will be published alongside the Spending Review.

Alongside the NPPF consultation, the Lords Built Environment Select Committee is carrying out an inquiry into the Grey Belt as proposed in the NPPF consultation. This short inquiry will seek to gain a better understanding of what Grey Belt land is, how it can contribute to housing targets and what sustainable Grey Belt development looks like.  The inquiry is open for submissions from anyone with answers to the questions in the call for evidence. Evidence can be submitted until Monday 14 October 2024.

The NHC has responded to the NPPF consultation.  The published response is here.