INTRODUCTION

  1.  The Royal Town Planning Institute (RTPI) is the professional body representing over 18,000 chartered town planners. It has recently merged with ROOM, the National Council for Housing and Planning in order to create a more inclusive, outward looking, informed and interventionist body. As part of this radical evolution the Institute and ROOM@RTPI will be taking a more direct interest in housing issues and, in particular, the relationships between policies and practice in housing with those in planning and regeneration. For this reason, the Institute particularly welcomes this inquiry as focusing on the key interrelationship between housing and planning.

  2.  This memorandum of evidence addresses the seven questions in which the Select Committee is particularly interested. Before doing so, however, we wish to stress one major point which underpins much of this evidence. The RTPI has called for a national spatial strategy[28] and we believe that such a policy document would form a very important contribution to national policy on housing and on sustainable communities. As this evidence makes clear, housing policy must be sensitive to the particular needs of individual regions and areas. In many areas those needs will relate to the need to accommodate growth. In many others, those needs will relate to the requirement to renew not only housing markets but local economies. In such areas, housing provision cannot be based on trend planning related to household projections but must be seen as an integral part of an overall economic, social and environmental policy for an area.

  3.  In order for this to happen, national and regional policy not only needs to be strengthened and integrated but needs to be expressed in terms of its spatial outcomes. There is a need for the impacts on different places within the country of, for example, DTI policy or, even, changes to the Housing Benefit System, to be evaluated clearly through a spatial strategy—and for this strategy to then be used to refine such policies and guide their implementation. Until this happens, national policy on housing will continue to sanction the development of communities in which jobs are not linked to housing and neither is linked to social and community facilities or to the protection of the environment.

THE OVERALL SCALE OF HOUSEBUILDING REQUIRED

  4.  The RTPI is in broad agreement with the figures provided by Alan Holmans[29] and supported by the Joseph Rowntree Foundation that the overall need for housing is some 225,000 homes a year to the year 2016—of which 83,000 should be affordable[30].

  5.  There is no doubt that the failure even to approach such a level of supply has had very serious implications both socially and economically. There are, for example, 81,260 households in temporary accommodation (compared with 45,030 five years ago) and the difficulties experienced in significant parts of the country in housing those who are key to economic success are well documented. However, there are a number of factors that need to be taken into account in addition to the overall numbers. The complexity of the demand and supply sides for housing must be reflected in the variety of policies adopted if the current housing crisis is to be tackled effectively.

  6.  First, it needs to be borne in mind that the demand for housing can be met not just by building afresh but by measures such as a serious national programme of bringing empty property into use—there were 753,188 empty homes in 2001—and by improving sub-standard housing. One of the effects of a greater concentration on these areas of supply is that household growth could be addressed within existing communities to a greater extent rather than building new housing in estates which themselves will not have the attributes or sense of a community. We recognise that planning policy itself must be more directed at meeting these challenges rather than focusing overmuch on the requirement for new house building.

  7.  Secondly, the overall numbers of housing are irrelevant unless they are broken down into different categories of housing—for those that can afford to buy on the open market, for those whose levels of incomes do not allow them to compete in the market and, yet, do not render them eligible for support and for those who need to rely on grant-aided rented housing. We address this issue below.

  8.  Third, we would stress at the outset that it is not simply a matter of overall numbers but a matter of the quality of housing that is developed—in terms of design, of the creation of desirable neighbourhoods and of the standards of construction and internal layout. In 1947, Aneurin Bevan, then Minister of Housing, said that, "At this moment we are going to be judged by the number of houses that we build. In 10 years' time, we shall be judged by the kind of house that we build, and I am not going to be panicked into doing a bad job." This sentiment remains as true today as it did 55 years ago. We return to the question of design in a later question.

ARE THE PROPOSALS LIKELY TO SIGNIFICANTLY REDUCE HOUSE PRICES?

  9.  It is clear that, in some parts of the country, the imbalance between the supply of housing of all sorts and the demand for housing is one cause of house price inflation. Given this, it follows that measures to increase the supply of housing should have an effect on the price of that commodity. However, four points need to be made.

  10.  First, it is apparent that the issues surrounding house price inflation are not found in many parts of the country. Indeed, the housing problems that face a significant proportion of the population and of geographical areas stem from the low cost of housing and the condition of the stock. This is well recognised—as the establishment by the Government of the Housing Market Renewal Fund demonstrates. However, the Institute reiterates this point in this evidence to stress the point that any Government policy that is informed largely or solely by problems of high demand is bound to fail large parts of the country.

  11.  Secondly, the imbalance between supply and demand in growth areas is not the only factor contributing to the rise in house prices. Factors such as comparatively low interest rates, the willingness of mortgage companies to loan at higher ratios to incomes and to lend on properties to rent or for second homes all contribute to pressure on house prices in certain areas. Fluctuations in house prices correlate much more with these factors—and such influences as changes to stamp duty and taxation relief on mortgages—than they do to the supply of land through the planning system.

  12.  Third, such research that has been undertaken indicates that it would require an extremely large expansion of the housebuilding programme to reduce house prices to any significant extent. For example, a study published in 1996[31] found that "releasing a lot of extra land has only a moderate impact on prices. For example, a 32% general increase in plan provision might only reduce prices by 8% in the medium term".

  13.  Fourth, it needs to be borne in mind that changes in planning policy—even those involving an increase in the supply of housing—can have the effect of increasing land and, thus, housing prices if, for example, they herald a significant public or private investment in the local economy and a strengthening of economic opportunities in the local area.

  14.  Finally, the Institute would support the evidence submitted by Alan Wenban-Smith in urging that more consideration be given to the effective supply of housing in terms of housing in which people want to live. Housing which is unattractive is effectively removed from the supply of housing—thus increasing the value of the remaining stock.

  15.  All these factors indicate that the proposals in the Deputy Prime Minister's statement would not, in themselves, significantly reduce house prices. Having stated that, however, the Institute would point to the effect that the allocation of land through the planning system can have on the price of housing in localised situations. The best example of this is the use of "exceptions sites" policies to allow sites in rural areas to be used solely for affordable housing for local need and, thus, establishing a lower value for the site than would exist if market housing had been allowed on the site. The Institute recognises the need to examine further the relationship between planning policy and land prices in this context and, in particular, the implications and opportunities of the suggestion in the planning green paper that local planning authorities could allocate sites solely for affordable housing.

THE GEOGRAPHICAL DISTRIBUTION OF NEW HOUSING, INCLUDING PLANS TO CONCENTRATE DEVELOPMENT IN THE SOUTH EAST IN FOUR GROWTH AREAS, THE CAMBRIDGE/STANSTED CORRIDOR, ASHFORD AND THE THAMES GATEWAY

  16.  Guidance on the distribution of housing at a national level is not provided in the Statement nor is it provided elsewhere. It is a failing of the English planning system that there is no national view of spatial priorities. The forecasts provided by the predecessor Departments to the ODPM have been misconstrued by some as targets but are not designed to fulfil this function. Instead, it is left for each region to establish its own figures in the light of Government forecasts but, also in the light of regional environmental and other factors, including political influence. This process is repeated at the county and district level.

  17.  The Institute naturally fully supports the need for local democratic processes to influence the planning policies and allocations for an area. However, it is conscious of the need to ensure that the planning process does not serve only to articulate a view that is resistant to development, however valuable that development is to other sections of society who are not, at present, empowered with such a strong voice.

  18.  As stated at the start of this evidence, there is the need to have a more informed approach to housing allocations and an approach that looks across other key policy areas in doing so. The Institute has stressed the need for a national spatial strategy which "would guide regional programmes in housing, employment, business support and regeneration. It must co-ordinate the programmes of Government bodies and the use of major funds from organisations as diverse as the European Union and the Lottery".

  19.  Finally, with reference to national policy on housing development, the Institute wishes to make it clear that the Government cannot claim to have achieved the target of 60% of housing development on "brownfield sites" in the terms in which that target was set. It has been achieved now on a much lower housing development programme that was envisaged in 1997 when the current administration reiterated that target. In terms of the housing needed, nowhere near 60% is being built on brownfield land.

  20.  Allocations at intra regional level also need to be made through an integrated planning process which has the ability to link economic policy with social and environmental policies. There is still a long way to go before Regional Planning Guidance, Regional Economic Strategies and Regional Housing Strategies are sufficiently integrated to provide a sound basis for housing allocations. Unless planning is undertaken in such an integrated way, we run the risk of creating rootless dormitory towns.

  21.  At the more local level, there is the need for a clear policy that all new housing must be based on the researched needs of the locality—and not on standardised solutions derived from elsewhere. In the great majority of cases this will mean that there should be no more housing-only developments of any significant size anywhere but that all should be planned to contain the essential elements of a community, whether community facilities, or local employment.

  22.  In the case of the South East, the four growth areas chosen reflect the growth zones in regional planning guidance. However—and this is still not clear—if the 200,000 houses in the DPM's statement are additional to the allocation in RPG9, then there is the need to question whether this is the right geographical spread for such additionally housing. The need for affordable housing is clear but this need exists in a variety of areas which do not necessarily accord with the four growth areas which have been identified partly by their capacity to absorb growth. RPG identifies other areas where additional investment is required, notably the low wage coastal towns and it is a matter for concern that the DPM's statement did recognise the need for development within the region to support the overall regional strategy rather than just the growth areas within it.

  23.  It also needs to be borne in mind that the allocation of housing numbers to particular areas is of little value unless public investment follows that allocation—particularly in terms of transport and other infrastructure. The role of an integrated planning system, which informs investment decisions is crucial in this respect.

WHETHER THE PROPOSALS WILL PROMOTE HIGH QUALITY SUSTAINABLE COMMUNITIES WHILE AVOIDING POORLY DESIGNED URBAN SPRAWL

  24.  The DPM's statement does provide a useful policy framework within which high quality communities can be developed and, as such, is welcomed by the Institute. However, there is the need to take further action if high quality communities are to be achieved.

  25.  The ODPM must focus to a far greater extent on the quality of the outcomes of the planning process rather than concentrating on the efficiency of the process. One of the major steps that Government can take is to engender a climate that celebrates and supports quality rather than a climate which appears simply punitive towards poor performance. The Institute recognises that change is taking place in this respect but there is the need to design systems that can measure, monitor and reward quality rather than being driven by a qualitative assessment of process outputs.

  26.  The Institute supports calls for an improvement in the skills base of those working in planning—particularly, in this instance, in urban design. The RTPI is a member of the Urban Design Alliance which has taken a lead in developing the skills agenda and the work which the Institute is undertaking through its Education Commission will help to set in place approaches both in initial professional education and in life- long learning that will help to meet the needs for a greater range, and depth, of skills.

  27.  The Institute supports the need for a greater focus on the preparation of masterplans—documents which bring together a design-based approach with one that achieves desirable social, economic and environmental aims and which involve local communities and interests as an intrinsic part of the process. There are already a number of examples where this is happening and the ODPM's proposals for changing the local planning process provides the scope for a further increase in such plans.

  28.  Finally, the Institute has already raised concerns about the functionality of current policies on the green belt. The Institute and its members are fully committed to the prevention of sprawl (if that is to be taken to mean the ineffective use of land and the creation of non-sustainable development). However, it has initiated a debate on whether current green belt policy, which has remained largely unchanged for 15 years, is the best way of maintaining the required control of development in a period of pressing need and of maintaining the value, in terms of the rural economy, recreation and landscape, of the land that is protected.

PROPOSALS FOR NEW MILLENNIUM VILLAGES

  29.  Whilst the Institute supports the concept of Millennium Villages, it feels that, to date, their achievements have not matched the original intentions behind them. The reasons for this are fourfold: because of the slow pace of the programme, because of some of the difficulties inherent in the development process, because of the absence of a strategic planning process in some cases and because of the lack of monitoring against agreed criteria. On this latter point, we support the conclusions of the recent research commissioned by the ODPM which stated that:

Whilst there is good practice emerging on some fronts, no major development in the UK has been required to set project objectives covering sustainability aims, and as such the creation of sustainable settlements as we understand the term has not been fully tested.

  30.  It should also be borne in mind that the planning system can help achieve the objectives and guiding principles that need to be met in order to create more sustainable forms of development. However, in order to create truly sustainable developments a more holistic approach must be taken. Whilst the land use planning system can address spatial aspects it cannot ensure that behaviour or activities within developments will be sustainable.

  31.  Proper planning needs to play a much more significant role in the choice of Millennium villages. Millennium communities should be carefully researched to fit with (and be integrated into) local circumstances (including local housing and property markets) as well as promote innovative and energy efficient elements. We would suggest that, in the case of Allerton Bywater at least, this has not been done properly.

  32.  At present, the total programme of such communities represents only some 6,000 homes. Welcome as this is, this programme cannot be seen as contributing in any worthwhile way to the total number of new homes that are—and need to be—developed. At present sustainable forms of development are the exception not the rule. This situation could be improved if policy tools used to create sustainable forms of development were made applicable to all development as opposed to being selectively area based as with the urban village.

THE BALANCE OF NEW DEVELOPMENT BETWEEN HOUSING FOR SALE AND SOCIAL HOUSING

  33.  The Institute believes that it is too simplistic to look simply at housing for sale and social housing for rent. There is already a growing sophistication in the range of tenures offered that span subsidised renting and full cost purchase. However, the Institute believes that there is still the need for a greater concentration on the intermediate sector in the housing market in order both to provide for the growing numbers of households who cannot afford to purchase but do not qualify for assistance or access to the social rented sector and to provide new models of tenure for areas of low demand which may require public investment to "pump prime" a self-supporting housing market.

  34.  We also consider that too little emphasis has been placed on market-based solutions, which provide both a return on investment and properties at below market rent. Most notable amongst these are the two CASPAR schemes promoted by the JRF in Leeds and Birmingham. In order to obtain the full benefit from such non-subsidised approaches, there is the need for the development industry to gear itself up to meet the challenges and not to rely to such a large extent on smaller, or individual, landlords to operate the private rented sector.

  35.  The Institute recognises the role that planning needs to play in defining the need for particular forms of tenure within an area and then for supporting any new forms of tenure required. This can be done by undertaking more sophisticated local housing needs assessments than are undertaken in some areas; by becoming a key part of a local authority's responsibilities to act as a strategic body in housing policy; by working in partnership with developers, landowners and registered social landlords at the earliest possible stage of the development process and by recognising the role that new and less tried forms of tenure can play if meeting local housing need when applications for such schemes are submitted.

  36.  As part of this process of taking a more detailed look at the types of housing required in different circumstances, the RTPI has been working with the Chartered Institute of Housing, the National Housing Federation, the Local Government Association and Shelter to put forward proposals for redefining affordable housing in planning terms. Evidence on this was submitted to the previous Inquiry by this Committee[32].

THE EXTENT TO WHICH DECISIONS RELATING TO HOUSING, INCLUDING NUMBERS, TENURE AND DENSITY, SHOULD BE TAKEN BY CENTRAL AND LOCAL GOVERNMENT

  37.  We believe that we have covered this question to a large extent in our comments on the need for a UK Spatial Strategy. Such a strategy would act as the framework for regional and sub-regional strategies and, thence, for local development frameworks. We welcome the commitment by the Government to make national policy guidance more focused but reiterate that a collection of different policy statements cannot be joined together to form a spatial strategy. We would also stress that policy guidance needs to be expressed in a clear and unequivocal way. In the past, too much advice has been expressed in a vague or "fence sitting" way.

  38.  The Royal Town Planning Institute would be pleased to discuss with the Committee the matters raised in this Memorandum.

29   Alan Holmans (2001) Housing Demand and Need in England 1996-16, NHF and TCPA. Back

30   Dave King (2002) "Can planners count on population forecasts?" Planning 11.10. Back

31   Glen Bramley and Craig Watkins (1996) Steering the Housing Market, Policy Press. Back

32   See p88 of HC 1206-II of Session 2001-02. Back