The UK Experience by Malcolm Morley*
Councils in the East of England are anticipating the Secretary of State publishing her views on independent review proposals to increase housing provision by 505,500 and jobs by 421,500 by 2021 within the region. Councils will then have the opportunity to respond within a 12 week period. With proposals of this scale there will inevitably be major impacts on many local communities in the region. Councils have responded very differently to the proposals for their areas.
The proposals for growth are based upon four assumptions. These are:
- high house prices will be contained by increasing housing supply
- economic success requires workers who can access jobs therefore more houses are required close to economic centres of activity
- infrastructure provision requires significant contributions from the private sector therefore a critical mass of growth is required to make the contribution required
- growth should be pursued sustainably.
As Councils know, demand created by household formation outstrips supply consistently. There is often a mismatch, however, between the nature of the local housing demand and the desire of the private sector to build houses to meet it. Developers prefer to build large, high margin houses that can often lead to an inward migration of people into Council areas. Areas in need of regeneration also struggle to attract developers to build houses until there is a real investment backed regeneration strategy that is being delivered sufficiently to change the perceptions of would be buyers.
Aspirational targets that developments should contain 35 per cent ‘Affordable Housing’ are likely, on the current evidence of provision, to remain aspirational. Developers increasingly and successfully argue that the contribution that they have to make to ‘Affordable Housing’, transport infrastructure and other social infrastructure reduces the attractiveness of development.
Councils in less marketable areas find it very difficult to achieve the developer contributions that other more marketable areas achieve. Both housing and economic activity require appropriate infrastructure provision. Transport is a key issue for both residential and economic developments. Places that have an existing transport infrastructure deficit generally find it very difficult to attract large scale private sector investment in either housing or economic activity. Large scale housing/jobs growth and infrastructure provision require land and have major implications for water supply, sewage disposal and energy consumption.
Balancing growth with environmental sustainability will continue to be a major challenge. Infrastructure provision and the delivery of housing/job growth require planning, investment and time. Major roads can take 15 years to plan, finance and construct. Growth will not happen overnight.
After the consultation on the Secretary of State’s views has taken place, decisions will be taken by Government on the nature, level and local of growth. Councils will then have to work with the Government, with their local communities and with the private sector to make the proposals a reality. This will test the capacity of Councils, the desire of the private sector to invest and the willingness and ability of the Government to forward fund infrastructure investment. A key issue will be whether Government is prepared to abide by the maxim – “no growth without infrastructure” – given its desire to see growth happen quickly. It will also test the resolve of Government to invest in less attractive areas to increase the potential for private sector investment.
*Malcolm Morley is Chief Executive of Harlow District Council and can be contacted via the Editor, email info@lgfocus.com.au The views expressed in this article are not necessarily those of his employer.
