Recession 'is no excuse to stop housing developments'_2

5 Mar 09
Local authority planners have been warned not to use the recession as an excuse for holding up housing developments.

06 March 2009

By Neil Merrick

Local authority planners have been warned not to use the recession as an excuse for holding up housing developments.

Ministers remain committed to house building targets set two years ago and expect councils to continue offering land to developers ahead of an upturn in the economy, said Richard McCarthy, director general for housing and planning at the Department for Communities and Local Government.

Speaking at a Chartered Institute of Housing conference in Brighton on March 3, McCarthy rebuked councils that have failed to draw up local development frameworks outlining where homes should be built. While admitting that the original LDF process was too bureaucratic, he insisted that a simplified system introduced last year meant councils should produce their plans as quickly as possible.

To date, just 41 of the 363 English councils with planning powers have had LDFs approved.

McCarthy appealed to councils and housing associations in particular to ‘get out there and build more homes’. While ministers were not prepared to see design standards reduced, they had given the Homes and Communities Agency money to speed up schemes.

‘We are making it easier for you to build more homes in the present economic conditions,’ he added.

McCarthy later revealed that the HCA had allocated £198m of the £200m set aside for housing associations to buy up unwanted homes from private builders. A total of 5,700 homes have been purchased.

David Montague, chief executive of London and Quadrant Housing Group, told the conference that councils, housing associations and private developers should work together more closely and make the most of government support.

‘There is not going to be much in the way of public grant available in the long term,’ he said. ‘We should use what little investment is available now in a creative way that keeps us all busy.’

Earlier the same day, L&Q launched a £42m housing scheme with London Mayor Boris Johnson, who chairs the HCA’s London board, allowing tenants to rent at sub-market rates before buying stakes in their homes.

Sir Bob Kerslake, chief executive of the HCA, said: ‘We are doing everything we can to get projects moving and deliver well-designed homes for Londoners. Our flexible investment approach means we’re able to respond quickly and effectively to bring forward affordable housing that would otherwise not get built.’

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