Britain’s housing policy must “ditch its relentless numbers game”

Some houses. Image: Getty.

Britain must build more homes – that much is certain. But a relentless focus on how many means we have lost all focus on the types of homes we must be building. This means we risk repeating the mistakes of previous decades, building homes entirely unfit for future generations.

This is the stark conclusion of a new report from Demos, Future Homes. Analysing the trends we expect to be shaping Britain in the future, we find our current approach to housebuilding has not kept pace with these changes. Indeed, we found that one third of the public don’t think new homes will be fit for purpose in thirty years’ time. Putting this right demands a revolution in our approach to housebuilding.

First, new homes must be fit for multigenerational living. This living arrangement is already on the rise: after decades of decline, average household size is rising, in part due to an increase in the number of multigenerational households. But housing design has not kept pace with these changes: our research found that two thirds of the public do not think new homes are not fit for multigenerational living.

We do not bemoan the rise in multigenerational households – quite the opposite. In a time of social isolation, multigenerational living may help to reduce loneliness amongst the elderly, helping them to stay integrated in society and play an active role in family life. More social contact between the young and old could also reduce the scope for intergenerational conflict, fostering mutual understanding between different generations.

Multigenerational housing may also help ease care burdens at both ends of life, making it simpler to look after the elderly, while allowing relatives to more easily help with childcare. It could also reduce the under-occupation of housing by the elderly, freeing homes at the top of the housing ladder. It is no exaggeration to say that in a time of increasing social and political division, building more multigenerational housing could help bring Britain back together – a first step on the path to a more connected society.

That’s why we call on the government to enshrine a commitment to multigenerational housing in its new Future Homes standard. Multigenerational households should also be entitled to council tax discounts and permitted development rights introduced for “granny annexes”, ensuring current housing stock can be made fit for multigenerational living.


We also need to build much more environmentally friendly homes whilst improving the state of our dilapidated housing stock. With the government aiming for net zero carbon emissions by 2050, this will require a radical change to housebuilding – especially when home energy efficiency has not improved since 2015.

To address this we call on the government to reintroduce the zero carbon homes standard and to launch a Green Homes Fund backed by a new, state-backed Green Development Bank. This would allow the government to make ultra-low interest rate loans to fund energy efficiency home improvements, as is widely and successfully done in Germany.

We must also begin to prioritise the creation of green space and gardens when building homes. This isn’t just what the public wants – we found gardens are the most important feature when choosing a home after location – but is good for our health too. Studies show that those living close to green space are more likely to exercise regularly – vital if we are to tackle today’s obesity crisis. That’s why our report calls for the government to introduce a new “green space standard” for all new homes, eventually giving all residents the right to a garden.

We recognise our proposals could increase the cost of housebuilding, potentially raising property prices – a great concern given the state of Britain’s overheated housing market. However, we believe our proposals can be justified for two reasons.

First, much of the recent explosion in property prices derives from land price increases, not construction costs. Therefore, if our changes were introduced alongside sensible policies to bring down land prices, such as a land value tax, their impact on cost would be limited. Second, even if there are additional costs today, the cost of pulling down new homes in just a few decades would be enormous. This has to be avoided.

Homes can be so much more than a roof over our heads, helping us respond to the great challenges of our time – loneliness, climate change, the crisis of care. But this can only happen if Britain ditches its relentless numbers game on housing and begins to care about the types of home we build, not just the number.

Ben Glover is a senior researcher at Demos.

 
 
 
 

The Tory manifesto promises to both increase AND decrease the rate of housebuilding

Housing secretary Robert Jenrick. Image: Getty.

In his 2014 Mansion House speech, the then-chancellor George Osborne expressed with uncharacteristic honesty the motives at the heart of how the Conservatives see British housing politics: “The British people want our homes to go up in value, but also remain affordable; and we want more homes built, just not next to us.”

Five years later these contradictions remain unreconciled and present in their manifesto, which contains two different and contradictory – but clearly extensively targeted and focus-grouped – sets of policies.

The Conservatives have two housing targets. The first is to make significant progress to hitting “our target of 300,000 houses built a year by the mid-2020s”. The second is their aim to build “at least a million new homes” during the next parliament, which implies a target of 200,000 homes a year. This is not only 100,000 lower than their initial target but also lower than the current rate of housebuilding: 213,660 new homes a year. They have therefore implied at separate points in the same manifesto that they intend to simultaneously increase and decrease the rate of housebuilding.  

There are similar conflicts in their approach to planning. They intend to make the “planning system simpler” while simultaneously aiming to introduce community-led design standards for development and planning obligations to provide infrastructure for the local community.

None of this is unsurprising, The Tories don’t seem to know if they want to build more houses or not – so of course they don’t know whether they wish to make it easier or harder to do so.  

Politicians like obfuscation on housing policy to placate NIMBY voters. Take for example prospective Conservative MP and ‘environmentalist’ Zac Goldsmith’s crusade to save treasured local car parks. The manifesto can equally be accused of pandering to NIMBY instincts, protecting their shire voters from all housing, including ones they might actually need or want, by promising to protect the greenbelt.  

Instead, Conservatives intend to foist development on Labour-leaning inner-city communities and prioritising brownfield development and “urban regeneration”. This requires massive, infeasible increases in proposed density on brownfield sites – and research by Shelter has shown there are simply not enough brownfield sites in cities like London. Consequently, it is not clear how such a policy can co-exist with giving these inner-city communities rights on local design. Perhaps they intend to square that circle through wholesale adoption of YIMBY proposals to let residents on each street opt to pick a design code and the right to turn their two-storey semi-detached suburban houses into a more walkable, prettier street of five-storey terraces or mansion blocks. If so, they have not spelt that out. 

Many complain of NIMBYism at a local level and its toxic effects on housing affordability. But NIMBYism at the national level – central government desire to restrict housebuilding to make house prices rise – is the unspoken elephant in the room. After all, 63 per cent of UK voters are homeowners and price rises caused by a housing shortage are hardly unpopular with them. 


There is anecdotal evidence that protecting or inflating the value of homeowners’ assets is central to Conservative strategy. When George Osborne was criticised for the inflation his help to buy policy caused within the housing market, he allegedly told the Cabinet: “Hopefully we will get a little housing boom, and everyone will be happy as property values go up”. More recently Luke Barratt of Inside Housing noted that most Conservatives he spoke to at the 2018 party conference were scared “they’d be punished by their traditional voters if the values of their homes were to fall”. He was told by a Conservative activist at the conference that, “If you build too many houses, you get a Labour government”.

But the senior figures in the Conservative Party are painfully aware that the continuing housing shortage presents major long-term problems for the Party. As the manifesto itself acknowledges: “For the UK to unleash its potential, young people need the security of knowing that homeownership is within their reach.” Perpetual increases in house prices are incompatible with this goal. The problem has greatly contributed to the Conservatives’ severe unpopularity with a younger generation priced out of decent accommodation. 

Equally, there is increasing evidence that ‘gains’ from rising house prices are disproportionately concentrated in the south of England.  The differences in housing costs between regions greatly reduce labour mobility, suppressing wage growth in the north and midlands, which in turn leads to greater regional inequality. The policy of coddling southern homeowners at the expense of the economic well-being of other regions is a major long-term stumbling block to Conservative desires to make inroads into the ‘red wall’ of Leave-voting labour seats outside the south.

Before dealing with the issue of where housing should go, you must decide whether you want to build enough housing to reduce the housing crisis. On this issue, the Conservative response is, “Perhaps”. In contrast, even though they may not know where to put the necessary housing, the Labour Party at least has a desire in the abstract to deal with the crisis, even if the will to fix it, in reality, remains to be seen. 

Ultimately the Conservative Party seems to want to pay lip service to the housing crisis without stopping the ever-upward march of prices, underpinned by a needless shortage. Osborne’s dilemma – that the will of much of his party’s voter base clashes with the need to provide adequate housing – remains at the heart of Conservative housing policy. The Conservatives continue to hesitate, which is of little comfort to those who suffer because of a needless and immoral housing shortage.

Sam Watling is the director of Brighton Yimby, a group which aims to solve Brighton’s housing crisis while maintaining the character of the Sussex countryside.