Small sites are important for local economies

On the eve of the local elections for four new regional metro mayors the housebuilding industry is pressing the successful candidates to boost housing delivery.

  • Ambitious targets for small sites needed
  • Metro mayors should use their powers to buy land for housing
  • Mayors should ensure colleges offer targeted skills in construction

England’s four new metro mayorsare being urged to use new powers ahead of schedule to help address the housing crisis by the building industry.

Local elections on Thursday, the 1st of May, will see new mayors for Cambridgeshire and Peterborough, Hull and East Yorkshire, Greater Lincolnshire, and the West of England.

The Homebuilders Federation,HBF, has published a Mayor Manifestocalling on them to draft spatial development strategies setting out overarching priorities for housing and infrastructure regionally.

HBF chief executive Neil Jefferson said: “This is the moment for them to take bold, immediate action and unlock the housing potential of their regions by addressing the barriers to housing, whether it’s planning delays or affordable housing shortages, or the need for greater flexibility in tenure mixes.

“By taking swift, decisive action now, mayors can deliver the stability, growth, and homes our communities desperately need, all while putting the power to shape the future firmly in their hands.”

Under the planning and infrastructure bill, expected to become law by the end of 2025, metro or combined authorities can set spatial development strategies like the London Plan.  The forthcoming English Devolution bill, scheduled to come into force in 2026, will give metro mayors the authority to intervene in local planning decisions.

The HBF manifesto encourages metro mayorsto use their full range of powers to accelerate housing delivery. This includes intervening when local councils underperform, using mayoral development corporations or orders to unlock land, and setting up a house builder panel to improve communication with home builders.

Small sites are important for local economies

“A greater focus on a diverse housing mix is also essential. The manifesto calls for mayors to set ambitious targets for small-site developments, particularly in locations well-served by public transport.

“Small sites, often overlooked in larger planning schemes, deliver valuable homes, support smaller home builders and boost local economies,” said Mr Jefferson.

The House Builders Association, part of the National Federation of Builders, NFB, calls for five site size definitions to replace one to ten for ‘minor’ sites and ten and above for ‘major’ sites. These would be one to nine for ‘minor’ sites, ten to 49 for ‘medium’; 50 to 100 for ‘large’; 101 to 249 for ‘major’ and 250 and above for ‘strategic’ sites.

NFB policy and market insight headRico Wojtulewicz said: “Smaller sites of one to nine homes support projects best targeting local demand. Sites of 10 and 50 are focused on organic growth.

“Sites of fifty to one hundred support almost all SMEs and do not greatly impact existing infrastructure.”

He said the different site sizes would avoid making planning more expensive for SMEs by streamlining planning for sites creating the lowest level of impact.

Hank Zarihs Associates said development finance lenders supported greater specificity in defining smaller sites as this would offer SME developers more opportunity to compete against larger builders.

NFBchief executive Richard Beresfordsaid:“In order to build 1.5 million new homes and save our SME builders, we need a planning system that is fit for purpose, priorities placemaking, and enables builders of all sizes.”

The HBF manifesto also calls on mayors to use their powers over local education and training to ensure colleges and training providers are aligned with the needs of the local housing market.

For Cambridgeshire and Peterborough where water scarcity has proved a majorhousebuilding barrier, the NFB has called on the new mayors to convene an action group.Stakeholders would include housebuilders, local authorities, water companies, and the Environment Agency to find long-term solutions.

LinkedIn Question:How optimistic are you that metro mayors will be instrumental in helping to hit the 1.5m target of new homes by the end of 2019?

SME builders give thumbs up to Homes England’s small sites category
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HZA
Shiraz Khan is the author of the content. Shiraz is the managing director and founder of Hank Zarihs Associates. With over 16 years' of experience we are master brokers within the short term financing industry. We specialise in a wide variety of short term loans.