Call for planning change to help housing associations built more homes

Planning rules should be relaxed to allow housing associations to build more affordable homes in the UK, a new report suggests.

They are currently beset by planning and funding issues and this is having a detrimental effect on their ability to build what is needed, according to a survey from Gowling WLG.

It found that 96% of surveyed housing associations will make savings in the next 12 months and 76% are undertaking commercial build to sell housing development activities to generate funding.

It also found that 92% of housing associations consider themselves ‘under pressure’ to cut costs in line with Government funding decreases and austerity targets, whilst 96% say they plan to tighten expenditure in the next year.

In addition, 68% believe planning inflexibility impedes their ability to build, while 62% think leniency surrounding their Section 106 obligations would help them develop commercially successful schemes.

‘Our findings show that the appetite and potential for housing associations to build more homes is there, but the research also suggests that, for most, significant steps need to be taken to allow them to make a really meaningful impact,’ said Jacqueline Knox, partner and social housing expert at Gowling WLG,.

‘Planning reform that helps housing associations to make the most of their potential influence in the build to sell market and by doing so to cross-subsidise their affordable housing schemes, could be a significant contributor to delivering more social housing.

‘In light of these findings, relaxing of planning obligations for not for profit housing associations at a national level could provide a feasible option to unshackling prohibitive restrictions on housing associations,’ she explained.

The firm says that changes that would have a significant impact could include improved access to planning officers, changes to speed of planning consent, relaxation or abolition of Section 106 obligations, prioritised access to public land and financial support for brownfield remediation works.

‘It may seem counter-intuitive that relaxing planning for housing associations could enable them to better fulfil their social objectives, but without a dramatic sea change in the public funding of housing associations, facilitating successful commercial profit-making functions is likely to be key to driving further investment in affordable housing,’ Knox added.

https://www.propertywire.com/news/uk/call-planning-change-help-housing-associations-built-homes/