The Week in Housing: will London’s ‘emergency’ housebuilding package work?

Good afternoon.

Rumours of a cut to London’s affordable housing target came true yesterday after an ‘emergency’ housebuilding package was announced that included lowering the affordable housing requirement for schemes to 20%.

The sector’s response to whether the plans will work was mixed, with the G15 calling for a “cultural change” in the private sector, and others warning that the move must not “set a precedent” and saying more needs to be done to unblock social housebuilding in the capital.

Part of an issue with the viability of schemes has been a lack of take-up on Section 106, for which the government has chided the sector.

With that in mind, Inside Housing pored over our exclusive Biggest Builders data and talked to development directors across the sector to find out what is actually happening with Section 106.

An interesting solution to the delivery crisis was floated this week as a coalition of private and public sector parties called for the government to use tax credits to fund 90,000 new social rent homes a year.

Fixing the planning system has been a key focus of the Labour government. A Conservative peer and vice-president of the Local Government Association raised concerns that recent changes to the Planning and Infrastructure Bill are not being given fair scrutiny because of political and fiscal pressures.

In other exclusive data-led features, we published our annual Chief Executive Salary Survey. It revealed an average pay rise of £14,500 and a widening gender pay gap among the housing associations we surveyed.

The Renters’ Rights Bill passed its final stage in the House of Commons this week, and is set to be brought into law through royal assent. The sector’s immediate reaction is here.

Under this bill, landlords who evict tenants so they can sell their property will be unable to re-let their home for 12 months if the sale falls through.

However, the ban will not apply to shared owners who have met conditions showing they had made a genuine effort to sell the property, after peers agreed an amendment to the legislation last week.

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