27 May 2005
Government proposals to give people a leg up on to the property ladder are a step in the right direction, the author of its review of housing supply has told Public Finance.
Banker Kate Barker, whose 2004 report called for a substantial increase in house-building, said she was pleased with the detail outlined in a pamphlet published jointly by the Treasury and the Office of the Deputy Prime Minister on May 25.
The document sets out the steps being taken to increase the supply of housing and make it more affordable by extending shared-ownership schemes.
Barker told PF that, at this stage, she was confident that enough was being done to address supply to avert further house price inflation.
But she hinted that her view might change once the government responds to her recommendations later this year. 'The government said right at the beginning that this would take a long time and these are difficult issues. Of course, one would like to do these things sooner rather than later. The end of the year will show how happy I really am,' she said.
The National Housing Federation declared itself 'disappointed' that the ODPM had not yet formally accepted Barker's recommendations.
Danny Friedman, director of policy, said: 'Planning law needs to be reformed so that we can speed up the release of private sector land and scrap the system that allows government land to be sold off to the highest bidder. This is thwarting efforts to deliver urgently needed affordable housing.'
Friedman also urged ministers not to ignore the housing needs of the poorest members of society.
'Any effort to make home ownership more affordable is to be welcomed. But if the government is to subsidise demand in this way, it's all the more important that it acts to boost housing over and above the small increases it has announced,' he said.
'This must include affordable housing of all types – including rented accommodation for those unable to afford even a part-share in a property.'
Adam Sampson, director of Shelter, said increasing the number of affordable homes for those in most need had to be the government's top priority.
'By creating more potential homeowners without substantially increasing the amount of homes available, as the Barker Review recommended, the government is creating a "black hole" of further house price inflation,' he said.
Deputy Prime Minister John Prescott said he was 'absolutely committed' to the provision of decent social housing at an affordable rent. 'We have already announced a 50% increase in new social home-building,' he said.
The pamphlet sets out details of a new government agreement with the Council of Mortgage Lenders to extend shared ownership opportunities to non-key workers, and also includes a catalogue of previously announced government plans such as the raised stamp duty threshold and the redevelopment of defunct NHS land.
The government also announced the locations of three former NHS sites that will be used to provide cheap housing, in Newport Pagnell, Basingstoke and Maidstone.
PFmay2005
