01 November 2002
Lord Rooker gave evidence to MPs on October 30, the day before the deputy prime minister was to deliver the keynote speech at the government's Urban Summit in Birmingham. Rooker acknowledged to the urban affairs select committee that addressing the affordable homes 'crisis' was a key Labour policy.
He admitted, however, that the government had not set specific targets to tackle the problem. But for general guidance, he added: 'You might expect maybe a quarter of all new planning developments… to be affordable dwellings.'
Committee members asked whether, with Rooker's estimated 'targets' in mind, there would be a shortfall in such housing across the UK. Rooker replied that he had figures only for the Southeast, where the problem is most critical: 'We have delivered around 4,000 homes in London and 6,000 in the wider Southeast, but the expected levels were 6,000 and 13,000 [respectively].'
Rooker promised he would provide figures for the rest of the UK before the committee publishes its final report on the issue early next year.
As Public Finance went to press, Prescott was preparing to unveil plans to tackle the shortage of affordable housing through a strict new planning regime at the Birmingham summit on October 31.
He was expected to force developers to build higher density housing in areas, mainly in the Southeast, where affordable homes are scarce. New developments currently average 23 homes per hectare, but he was expected to impose a new minimum requirement of 30 per hectare.
On the eve of the summit, Prescott revealed that he is in talks with other government departments to persuade them to sell off surplus land cheaply, so it can be used to build affordable homes.
He has told regeneration agencies to start work on specific sites – 124 have been identified so far – for new buildings, with a £200m fund being made available.
But these discussions could create friction with the Treasury, which has introduced resource accounting to encourage ministries to maximise their assets.
Prescott was expected to use his set-piece speech at the summit, which was conceived to bring together experts in planning, architecture and regeneration, to outline his vision of 'sustainable communities'.
He was likely to tell delegates that proper transport links, schools, shops and health facilities need to be constructed alongside new homes.
Edward Davey, who shadows Prescott for the Liberal Democrats, told Public Finance that the deputy prime minister's plans were unlikely to solve the affordable housing crisis. 'It's just a drop in the ocean against the size of these problems,' he said.
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