The North will rise again: seizing opportunities for housing-led regeneration

| |by

Maggie Rafalowicz, Director, Campbell Tickell

The election of a new government has put housebuilding front and centre of economic growth with the ambition to deliver 1.5 million new homes over this Parliament and the promise of a long-term housing strategy to be published next Spring.

We have seen many policy announcements already, including proposals for mandatory housing targets, a New Towns Taskforce, concerted action to accelerate stalled sites, £3 billion of guarantees to support SME housebuilders, half a billion of extra investment into the Affordable Homes Programme and the focus on devolution and combined authorities. Meanwhile, for existing homes the Government has committed further funds to remediate unsafe cladding, launched a rebranded ‘warm homes’ programme, and published the Renters Rights Bill to improve standards in the private rented sector.

Much of growth in housing is aimed at the North as demonstrated by the increased housing targets. Such growth is seen as being a key driver of economic productivity, closing the longstanding gap between regions, with benefits for health and living standards. It dovetails with plans for the further devolution of powers and investment to regional mayors, with combined authorities already covering most of the North’s population.

Planning for the homes the North needs

A critical component of the government’s plans to increase housing supply lies in reform of the National Planning Policy Framework. Proposals to introduce a new standard method for assessing local housing needs translate to over 77,000 new homes in the North each year. This represents an increase of 67% compared with the current method, and contrasts with an average increase of 22% across England as a whole.

Delivery demands that local areas have a clear plan and strategy for working with partners to accommodate growth. Cross-boundary co-operation and spatial planning at the regional level is crucial, with the greatest increase in housing targets proposed outside of the core cities. There will also be debates about the trade-offs, such as the circumstances in which Green Belt (or even ‘Grey Belt’) land is released to meet housing need.

Delivering new homes in the North

Targets and plans alone do not build homes and there is a need to increase delivery output. This presents a challenge at a time when confidence in the construction sector remains low, registered providers are diverting their attention to investment in their existing homes, and local authority planning capacity is overstretched.

We know the challenges of housing delivery can be greater in the North, where lower values can threaten viability. This is particularly true on brownfield sites which require remediation and may have other infrastructure requirements. The Northern Housing Consortium have identified capacity for an additional 320,000 new homes on brownfield sites across the North, which could make a huge contribution but are likely to require significant upfront investment to deliver.

Existing homes could also provide a huge opportunity across the North, with approximately 89,000 long-term vacant homes that could be brought back into use and be a solution for households living in temporary accommodation. Stronger CPO powers and more flexible grant funding could allow such homes to be purchased, repaired and remodelled, or where appropriate enabling land assembly for regeneration schemes offering higher density and more diverse housing mixes.

Looking forward – strategy to deliver

A renewed political focus on housing and devolution stands to offer considerable benefits. It will be essential for areas to have a clear vision and strategy for housing, which takes account of local housing needs, is supported by partners and communities, and identifies the priorities for regeneration. Having such a strategy will be crucial in making the case for devolved funding and to signal opportunities for the external investment needed to deliver the homes the North needs.

Campbell Tickell’s support with housing strategies

At Campbell Tickell we have a wealth of experience of working across the North on local housing strategies. To speak to us about how we can support you, please contact Maggie Rafalowicz (Director):

Further reading: Housing strategy – what’s in it for residents? Read Maggie Rafalowicz’s recent article featured in the MJ and New Start.