While localism and the New Homes Bonus can improve elements of planning and housing delivery, in reality they risk tinkering around the edges. The overarching problem for house-building today is land supply. This is not to say there is not enough land – just 7% of the country has been built on – but that available and viable land supplies are nowhere near sufficient. There are a number of reasons for this, not least the many restrictions on land use which have ensured there is insufficient competition in terms of land that can realistically come forward. Landowners with land available for development can be in a very strong position. If more land was made available in local plans construction would be easier and cheaper and therefore the cost of homes would be more affordable. The government must also set an example in this regard. Central and local government bodies are sitting on a large amount of land suitable for development but rarely make this available for construction either because it is not a priority or for economic reasons – expecting land values to increase. Surplus public sector land could become vital to increasing house building, but the government needs to drive the process. Over the coming months we expect the coalition government to make efforts to increase mortgage lending to first time buyers and speak clearly about the need for more access to home-ownership. What they must also do, however, is tackle the fundamental problem of land supply for house building. This won’t be easy politically but it will demonstrate that they are thinking about the long term future of the country.
