• New generation of Public Rental Homes (PRH) needed to match the needs and pockets of 1.2 million households on waiting lists.
• New Public/Private partnership model for half-market rent homes designed for local needs, built by private developers.
• Site-by-site appraisals rather than top-down planning targets form the bedrock of local PRH programmes.

The Housing Finance Institute (HFI) and Localis published a 30-page blueprint designed to stimulate a new generation of council homes.

‘Public Rental Homes – fresh perspectives’ provides a solution to the challenge that just 6,000 of the 52,000 new homes listed as ‘affordable’ in 2020/21 by local councils were truly affordable by 1.2 million households on waiting lists.

Local authorities would have the opportunity to develop plans to slash council waiting lists and galvanise local housebuilding by partnering with private developers to build homes by adopting this new-generation PRH model, that flips the traditional approach to negotiations on ‘affordable’ provision.

Currently councils negotiate with developers to determine the percentage of affordable homes a scheme can provide, based on the total private unit sales. ‘Affordable’ rents can vary from 50% of local market rents up to 90%.

Subsidised sales are included in the percentages. The PRH model flips the question to ‘what percentage of private homes are needed to produce sufficient PRH homes?

Under the PRH model – which deals in ‘bottom up’ plans, not top-down targets – local authorities would be responsible for identifying sites that might meet PRH criteria and initiate a discussion with developers.

For their part, developers would assume 100% of the risk and a 20% margin on both the PRH homes as well as their own private units.

Report author, Peter Bill, said: “Families on council waiting lists are squeezed to the bottom of pile by financial pressures on councils and developers trying to agree on the percentage of affordable homes. A new perspective is needed to ensure the needs of these families become the top priority on sites where PRH is viable.

“The PRH approach addresses that need and provides fresh impetus to councils looking to house those on their waiting list and to developers looking for better, simpler, ways to build.  Site-by-site viability is the key. Developers take 100% of the risk and therefore deserve a 20% profit margin.”

Co-author, Jackie Sadek, said: “We need to get on and deliver. Stop arguing about the whys and the wherefores. Delivery only happens on the ground, not from Whitehall.

Let’s try to crack this massive crisis, not top down, but bottom up. Every council should be supported in drawing up a 10-year Plan to deliver Public Rental Homes.”

Chair of The Housing and Finance Institute Board, Sir Steve Bullock, said: “Thousands of families and individuals, both young and old, are caught in the trap of being unable to afford to buy or rent privately but finding no alternative that they can possibly afford either.

More people are falling into this trap each month yet the supply of new affordable homes is actually diminishing.

“The impact of the cost-of-living crisis makes finding a response ever more urgent and the HFI has commissioned this research to offer a way forward that can attract support on a cross-party basis.

“Putting the emphasis on building new social homes has the potential to be a win–win with homeless people having a better chance of moving to decent properties that they can afford and make into homes while the economic impact of the construction will have wider benefits.

“Doing this at pace will need a different mindset at all levels of government and the HFI will press for that and work with councils, government and developers in the coming weeks to make this happen.”

See more about affordable homes on Skill Builder

Research by debt advisory specialists, Sirius Property Finance, has revealed which areas of Britain look set for a property building boom, having seen the highest level of planning applications granted in recent months.

Sirius Property Finance analysed figures on the average monthly total planning applications submitted across each region of the UK, the average success rate of these applications and what this equates to in terms of total applications granted.

The research shows that across the UK, almost 24,500 planning applications are received on average each month, with just over 20,500 (84%) of those being successful.

Northern Ireland is home to the highest average monthly success rate for planning applications approved, with 95% of all applications given the green light each month, followed by the North East at 92% and Wales at 97%.

However, these regions are also home to some of the lowest average monthly totals of planning permission submitted, accounting for 0.5%, 2.3% and 3.8% of respective successful planning applications.

In fact, it’s the South East that looks set for the biggest building boom in 2023 so far, with 4,491 planning applications made on average each month.

While just 84% of these applications are successful, this equates to 3,772 successful applications every month, 18.4% of the UK total.

At just 75%, London is home to the lowest percentage of successful planning applications across the UK.

But despite this, the 3,444 successful bids seen across the capital every month account for 16.8% of the national total.

The East of England (12.7%), South West (10.4%) and North West (8.3%) also account for some of the highest levels of successful planning applications made each month across the UK.

Managing Director of Sirius Property Finance, Nicholas Christofi, commented:

“Despite the economic uncertainty that came during the closing stages of 2022, we’ve continued to see a high level of market activity when it comes to the financing of both commercial and residential developments across the UK.

Perhaps more telling is the higher propensity of these developments in higher value regions such as the South East and London, which suggest that a robust level of confidence remains in the market and that any fears of a property price downturn are largely behind us.

More encouraging still, is the fact that the majority of applications made are getting approval and this bodes very well for the health of the market moving forward, both in terms of ability to actually build, as well as the delivery of this stock to avoid any future periods of market stagnation.”

View full data tables online here.

New College Durham is launching a new course which aims to address the retrofitting skills gap…

The Level 2 Award in Understanding Domestic Retrofit will provide the local workforce with the first step towards in-demand careers in the retrofit industry.

As part of the government’s net zero obligations, eleven million homes across the UK need to be retrofitted to reduce both energy consumption and emissions.

This will only be possible with raised awareness and a skilled workforce.

New college Durhams Level 2 Award is designed for anyone looking to gain a better understanding of retrofit, and can also help those with professional construction experience take the first step towards becoming a Retrofit Assessor, or work in the building insulation field.

Lee Baum, Green Skills Manager at New College Durham, said:

“There has never been a better time to start the Retrofit journey, whether your ambition is to become a Retrofit Assessor, you are a tradesperson who wants to understand best practice for building insulation to meet PAS2035 compliance or you just want to learn more about the topic, this course is packed with valuable content that ensures you make the right first step into retrofitting.

It will give you a comprehensive and easy-to-follow introduction to whole-house retrofit. You will gain an understanding of what domestic retrofit is, what it is supposed to achieve, what you need to know when working in the industry, and what to look out for when installing energy efficiency measures in homes.

Employers are increasingly seeking to develop a workforce who understand the fundamentals of retrofitting, so the course is designed to improve your employability skills.”

The Level 2 Award in Understanding Domestic Retrofit at New College Durham, starts on Monday 17 April at 5.30pm-8.30pm.

It runs for six weeks and is accredited by City and Guilds.

To find out more or enrol visit www.newdur.ac.uk, contact 0191 375 4040 or email help@newdur.ac.uk.

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