Following last year's launch of the ‘Planning for the Future’ white paper, which pledged to carve up land in England into ‘growth and ‘protected’ sites, the government has confirmed that it aims to use brownfield sites to build 160,000 homes.
The chancellor announced £1.8bn has been earmarked to develop homes on derelict land. £300m will be given to metro mayors and councils to unlock smaller brownfield sites for housing. Infrastructure will also be given extra funding, such as transport links, schools and community spaces and extra attention given to energy-efficient housing.
The chancellor said: "We're investing more in housing and homeownership too, with a multi-year housing settlement totalling nearly £24 billion: £11.5 billion to build up to 180,000 new affordable homes, and we're investing an extra £1.8 billion, enough to bring 1,500 hectares of brownfield land into use, meet our commitment to invest £10 billion in new housing and unlock a million new homes."
Philip Woolner, Managing Partner at Cheffins says: “The Chancellor’s pledge today of almost £2bn-worth of funding for development of brownfield sites is a savvy move from the government and is welcomed in its mission to help build out neglected potential sites across the country. With the ability to ‘unlock one million new homes,’ the funding will work in a two-pronged approach in both helping to create additional housing which is so crucially needed, whilst also protecting the greenbelt.
"As brownfield sites are often in locations where demand for housing is lower or economic growth is weaker in comparison to other parts of the country, it can often be difficult for developers to justify building these out, particularly when assessed against easy-to-develop greenfield sites in high demand locations. For developers, brownfield sites which frequently come with additional complications, higher costs and potential contamination issues can be a rather unattractive proposition and hopefully this injection of cash from the government ought to encourage developers to take on these sites which have been calling out for rejuvenation or to get cracking with building out the sites which have already been banked by many of the national housebuilders.
"The results of building out brownfield can be spectacular, for example at the Queen Elizabeth Olympic Park or the Gasholders site at King’s Cross, and they can bring huge economic and social benefits to a given area. Finally, the government has seen the potential for many of these sites across the UK and has been willing to help ensure that it is still within housebuilders’ interests to make use of these types of areas, instead of setting vote-getting housebuilding targets to be achieved at random, spoiling much of the countryside in the process.
"However, it also must be remembered that whilst it would be great to have these sites cleaned up with rows of shiny new properties, there will still need to be a significant level of greenbelt development in the coming months if the government is going to meet its housing targets, particularly in London and the congested south-east.
"And the important element here is the delivery of green, affordable housing, which will allow the government to work towards its net-zero carbon goals, whilst also addressing the housing shortage. Affordability continues to be a major issue for vast swathes of the population and whilst the government’s aim to build an additional 300,000 homes per year for the next five years is all very laudable, these need to have a large proportion offered at affordable price points in order to help the millions still struggling to get onto the property ladder.
"Thankfully the Chancellor’s announcement of a dedicated £11.5bn towards solely affordable housing ought to help this, however, the proof will be in the pudding as to whether 180,000 new affordable homes is enough to really make an impact on this perennial problem which successive governments have repeatedly tried to tackle.
"These are muddy waters ahead and the government will need to review both its housing targets and its changes to the planning system regularly in order to navigate them.”
Nick Sanderson, chief executive of Audley Group, said: “160,000 greener homes on brownfield sites are the government’s latest housing commitment but what’s lacking is detail on the types of houses. Building more of the same will not address the issues the housing sector faces.
“We have enough houses, that isn’t the problem. The problem is that too many properties are under-occupied. There are millions of surplus bedrooms across the UK, with many owned by people who would like to downsize but don’t know have the options available.
“The government’s focus needs to be shifted to specialist housing, and fast. The benefits could be numerous. Freeing up homes, while simultaneously taking pressure of stretched care services. It’s time for the government to build smarter.”
Paul Smith, MD of The Strategic Land Group, said: “The extra costs associated with delivering new homes on many brownfield sites often result in wider infrastructure improvements - like news schools and parks - being sacrificed to make development financially viable. And while it’s welcome to hear that the government is taking steps to help fund housebuilding on brownfield sites, the biggest obstacle is the planning system.
"The unpredictability and high costs that characterise the current planning system are a barrier to schemes being brought forward of all types, but especially brownfield sites - the smaller uplift from existing use to residential development value, combined with a reluctance from many councils to allow sites to be redeveloped unless they have been vacant for a number of years means that it simply isn’t worth the risk and expense to apply for planning permission for new homes; even on brownfield sites that are perfectly suitable.
“We’re very unlikely to see new homes built on brownfield sites in greater numbers without meaningful changes to the planning system - the economic benefit that would produce for the country dwarfs every other announcement made in today’s Budget. "
