If labour are to achieve their target of delivering 370,000 new homes each year, housebuilding in the North needs to increase by 79.2%, according to new research.
Following the publication of the revised National Planning Policy Framework (NPPF), experts from West One Loans, a leading provider of property finance and specialist mortgages, compared Local Housing Need figures in each region.
The updated NPPF, which held its most recent consultation between July and September last year, informs councils they must play their part to meet housing needs and ultimately delivering Labour’s target of 370,000 per year.
However, researchers revealed some areas are struggling more than others, particularly the Northeast of England. Under previous laws, some 6,123 homes a year were required by government calculations, however, the new standard method means this figure now sits at 10,976 – an increase of 79.2%.
Against this backdrop, the number of homes needed in the Northwest has increased by 61.3%, with the Southwest (41.8%), Southeast (37.9%) and Yorkshire and the Humber (33.5%) also experiencing some of the largest hikes.
Though the research is worrying, Guy Murray, co-head of short-term finance at West One Loans remarks previous government failings to meet housing targets means councils shouldn’t stress themselves too much.
‘Our new Labour government has been quick out of the blocks with respect to new housing delivery and their introduction of grey belt land classification is certainly one of the more positive steps we’ve seen in recent times,’ he said. ‘However, whilst admirable, their target of 370,000 new homes per year seems ambitious at best, particularly when you consider the failure of the previous government to come anywhere close to its target of 300,000 new homes per year.’
‘The key to boosting housing delivering is developer incentivisation and this can take many forms from tax breaks, grants, credits or rebates, or via improvements to help streamline the process, such as easing zoning regulations,’ Guy continued.
‘Of course, the biggest incentive is a buoyant market and we’re yet to see the current government make any real statement with respect to stimulating buyer demand levels. In fact, they’ve done quite the opposite by failing to extend current stamp duty relief thresholds beyond the end of March.’
A full list of the results from West One Loans can be found here.
Photo by Nicolas J Leclercq via UnSplash
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