Comment

03.06.19

Building for the future amidst a growing affordability crisis

Source: PSE Apr/May 2019

Cllr Philip Atkins, housing, infrastructure, and planning spokesman for the County Councils Network (CCN), reveals that county house prices are the most unaffordable in England outside of London.

House prices are never far away from the headlines, and much media attention in recent months has focused on sluggish growth for the country’s property market.

Whilst some parts of the country have seen house prices drop – particularly London – this has not been the case for county areas. Whilst a buoyant property market is good for sellers and homeowners, the other side of the coin is a growing affordability crisis that has locked millions out of home ownership.

Recent research from the CCN illustrates this affordability issue and how it is spreading from the capital to the shires. The average county house price is now 10 times annual average wages – a ratio that has widened over the last two years. The average home in Cambridgeshire is 14.6 times annual wages in the county; and in total just six out of 27 county council areas have a wage to house price ratio that is lower than the national average of 8.3.

This poses social and economic issues for county leaders. As the County All-Party Parliamentary Group’s social mobility report touched on last year, counties face a ‘brain drain’ whereby skilled graduates and workers leave their county home and never return. The increasing unaffordability of homes – and average county wages which are some £2,000 lower than the national average – only exacerbates this situation when our young people feel like they have more opportunity in the cities.

The government’s attempts to address the country’s housing crisis is laudable; despite Brexit considerations, this has arguably been the government’s flagship domestic agenda. Yet reforms designed to boost housebuilding do not go far enough. Bolder change is needed if this agenda is to be a success.

The planning system in two-tier areas is fragmented; a closer alignment of the system is needed. CCN has long called for a re-introduction of planning on a strategic scale, with counties working in close collaboration with their district councils, bringing in a closer alignment of the disparate planning and infrastructure functions currently carried out by the different tiers.

This closer relationship between districts and counties would also allow for planning over larger geographies with an improved and clear role for the county council in helping to plan for new development and infrastructure over a larger area rather than by district area. This will help ensure that we get the right mix of homes, in the right places, with the necessary and properly-financed infrastructure.

This is not a power grab from the counties; instead, it is an acknowledgment that the present system is not working as well as intended, and closer collaboration is needed.

At the same time, the government has acknowledged that developer contributions to help finance infrastructure requires reform. This is particularly pertinent for county authorities, who face billions in infrastructure funding gaps. Hertfordshire, for example, calculates that it requires £6bn to support the planned growth in new homes for the county, but only £1.6bn of this has been identified so far.

Development funding via Section 106 arrangements and the Community Infrastructure Levy is inadequate to truly address each county’s need, and government reforms, like its planning policy revamp, do not go far enough. Whilst the restrictions to lift s106 pooling restrictions are very welcome, we would like to see a more effective way of capturing land value, and the ability to set strategic infrastructure tariffs – something only urban-metro mayors can do currently.

The aim of the game must not be to simply increase the numbers – it should be to ensure that we build not just homes, but long lasting, attractive, and sustainable communities. County councils are the ones that can provide the strategic leadership and delivery to ensure that this happens.

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

latest public sector news

Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower e... more >
Colleges set to receive £200m in Funding

19/08/2020Colleges set to receive £200m in Funding

Over 180 colleges are set to receive a share of £200m, in order to repair and refurbish buildings and campuses. The funding makes up p... more >
UK climate change projects to receive £14m funding

18/08/2020UK climate change projects to receive £14m funding

The National Lottery Community Fund has announced the first 14 grants from the Climate Action Fund going to communities across the UK to tackle c... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PSE were looking at innovative ways to deliver its content to our audience in a more dynamic and responsive manner. We’re conscious to take the time to both prot... more >
read more blog posts from 'the raven' >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

public sector focus

LGA: ‘Air pollution is a major public health issue’

17/08/2020LGA: ‘Air pollution is a major public health issue’

The Local Government Association (LGA) has ca... more >
Automating back-office processes for local authorities

29/07/2020Automating back-office processes for local authorities

Words provided by Cantium Business Solutions,... more >