Housing Need across England only partially reformed, with a focus on major urban areas

This is includes an update to the ‘Standard Method’, and has a focus on prioritising brownfield sites and urban areas. Full statement here: 

• The Standard Method ‘1.1’ requires nearly 300,000 homes per annum to be planned across England, with a major focus on London, at circa 93,000 homes per annum. In the vast majority of local authorities, the Standard Method 1 figures remain as is.
• Urban areas will be further encouraged to plan for more family homes. The Government has outlined proposals (and funding) to support greater delivery in England’s top 20 cities, an uplift of circa 35% in the housing requirement. 14 of which are in the Midlands or the North, accounting for circa 30,000 homes per annum. Excluding London, the five main cities in the south, account for circa 7,500 homes per annum.
• Funding to further assist with the ‘levelling up’ agenda, ensuring greater focus on investment and delivery in the Midlands and the North.
• Repurposing offices, and retail to residential where appropriate, and seeking high density / taller buildings where appropriate, for example in London.
• A new expert Urban Centre Recovery Task Force has been set up to advise on the development and regeneration of our great town and city centres. The Task Force includes Peter Freeman, the visionary behind the redevelopment of Kings’ Cross and new Chair of Homes England.

The proposals are to accord with wider reforms, notably to permitted development rights, for example redundant buildings to residential provisions (Class ZA), and the prospect of permitted development from Class E to residential (presently being consulted). More information here: 

Savills, in our research and response to the proposed draft Standard Method ‘2’ consulted from August, outlined support for a method which tackled housing affordability, had regard for existing levels of housing stock and adopted a realistic approach to the aspirations for London.  The Government has chosen instead to largely stick to the previous Standard Method, which means only an increase of 13% nationally.  

The Government’s ambition remains for 300,000 homes per year to be delivered in England. This needs to be properly planned now, on the basis of the present planning system, ahead of intended reforms later in 2021.  In our response to the Planning White Paper, Savills outlined a case for proportionate reform, to ensure prompt local plan coverage.  As the PPG has also been updated to make clear that the 35% uplift in London and 19 other cities should be planned in within those cities (noting a six month transition period), questions will inevitably be raised about the implications, including on delivery and on adjacent or nearby local authorities.

David Jackson, Head of Planning at Savills, commented:

‘The Government’s continued focus on increasing the delivery of new homes in response to the crisis in supply across the country is welcome.  From this announcement, it appears the Government is seeking to address 3 key issues: the housing target, the ‘where’ and the ‘what’.  In terms of the target, the new method the Government has announced would result in a target of 300,000 homes per year in England; down from the figure of 337,000 homes - the output of the method the Government previously published.   A key issue with this number is that we should measure outcomes i.e. what gets built not what gets planned.  To achieve 300,000 homes there needs to be some level of ‘headroom’ and we would suggest that local authorities therefore ensure their Local Plans allow for this headroom so the 300,000 new homes target is met.   In terms of the ‘where’ the Government is maintaining the long-held planning principle of ‘brownfield’ first.  Whilst that is right, it cannot mean ‘brownfield only’ and there needs to be a realistic assessment of what urban sites can deliver and what role currently undeveloped sites must play.  This should be an area that is actively monitored to ensure targets are not missed.  Finally, the ‘what’, we support the Government’s emphasis on higher quality and energy efficient homes, set within walkable neighbourhoods and green spaces.  The next step must be for Government and local planning authorities to embark on a campaign of ‘plan, plan, plan’ in order to ‘build, build, build’’, and promptly, particularly in and around the major urban areas.”

Savills will be shortly publishing our regular updates on local plan production and five year housing land supply.  Our predicted results (to be published by Government in the New Year) on Housing Delivery Test have already been published here: 

The analysis of the updated Standard Method ‘1.1’ and implications for each local planning authority will be of interest to all in the development industry.