Next Thursday (7 June) sees the launch of the Government’s National Housing and Planning Advisory Unit [1]. Established in response to economist Kate Barker’s recommendation, the Unit has been set up to advise regional assemblies on housing and affordability issues.

Kate Gordon, CPRE’s [2] senior planning officer said:

‘It is vital that the Unit avoids simplistic assumptions about house prices and how many homes are built.  We have found no evidence to suggest that not enough land is being allocated or that this is the cause of high house prices. Councils are allocating land [3], and housebuilding has increased [4], although in many instances developers prefer to build up their landbanks rather than build homes [5].’

Research commissioned by CPRE has identified a wide range of factors which affect house prices, including the quality of the neighbourhood, school exam results and interest rates [6].

Kate Gordon continued:

‘We are asking the Unit to be realistic about what affects house prices and what the planning system can achieve. Planning does not control interest rates or schools, for example.   Where and how development takes place profoundly affects the quality of local neighbourhoods and the local environment – it is important the new body understands this.  A narrow economic focus would have devastating consequences for communities and the environment.’

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NOTES FOR EDITORS

1. The launch of the National Housing and Planning Advice Unit, a non-departmental public body, takes place at the Building Awareness for the Future conference at the Imagination Gallery in London on Thursday 7 June. 

2. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Sir Max Hastings. Patron: Her Majesty The Queen.

3. For example, in the South East region, around seven years’ worth of housing land has been allocated or has planning permission.

4. Housebuilding in England now stands at its highest level since 1989, with 168,000 homes built in 2006/7. The latest Government figures for 2006/07 show that the number of new homes built has risen every year since 2001/02.  Output has grown by 29% over those five years. Source: Communities and Local Government statistical release, May 2007.

5. Landbanks (land with outline planning permission or better) held by the 17 leading housebuilders in Great Britain in 1998 increased by 44% (from 237,069 plots to 341,552) over the 7 years to 2005.

6. CPRE study Planning for housing affordability. Publication expected late June.