MPs
cast doubt on sustainable developments
By Cheryl Taylor - Property Editor
16 April 2006
John Prescott’s plan to build “sustainable communities” may itself prove
unsustainable. The Office of the Deputy Prime Minister did not properly consider
the impact on the environment when it made plans to build thousands of homes in
new communities, MPs have warned.
Commenting on a follow-up report published this month on sustainable housing by
the Environmental Audit Committee, chairman Tim Yeo MP said: “We are concerned
that houses are already being built, and will continue to be built, without
sufficient regard to strong environmental standards.
“Reliance on developers to gradually ‘do the right thing’ on a voluntary basis
is misplaced and is symptomatic not only of the Office of the Deputy Prime
Minister’s reluctance to take on the building sector, but also of a fundamental
lack of urgency in the Government’s approach to ensuring that new housing and
new communities are truly sustainable.”
The committee members accept the need to build more affordable homes but are
worried about the environmental impact, says Yeo. “What we find reprehensible is
the clear signal from government that it really does not matter that these homes
are going to be built before supporting infrastructure is in place.”
The MPs remain “deeply concerned” that John Prescott’s office is determined to
build new homes first then worry later, if at all, about how the supporting
infrastructure can be created. According to the report “communities that are
created as a result of such a short-sighted policy will be anything but sustain-able”.They
are also “deeply worried” about the South East’s ability to cope with the
increased water demands as a result of the Government’s plans to built 200,000
new homes per year by 2016, given the Environment Agency warning that standpipes
and rota cuts may be necessary this summer, as climate change bites.
The committee’s recommendations to the Treasury include revising the current VAT
rules concerning both new-built and refurbished homes built to high
environmental standards, and to consider reducing both Stamp Duty and Council
Tax for those homes.
Meanwhile, new figures on the growing number of households released by the
government show the true extent of Britain’s worsening housing supply crisis
over the next 20 years. By comparing the increase in households with current
statistics on house building, leading new homes warranty provider Premier
Guarantee has revealed the precise shortage of homes in each area of the UK.
The number of households in England is expected to increased from 20.9m in 2003
to 25.7m by 2026, an annual growth of 209,000, according to the Office of the
Deputy Prime Minister. This is a result of growth in the adult population,
increased numbers of single households, rising divorce rates and increased
immigration. However, the already low rate of new homes being built is
increasing at a much slower pace of just 2% per year.
London faces the most severe shortage, with households increasing by 36,200 per
year, but only 18,163 new homes being built annually. Consequently, the City
will see only half of the new homes needed building built between now and 2026,
according to the report. The South West and South East are also facing chronic
shortages if radical action is not taken to increase housing supply, it says.
The South West will have a deficit of 11,489 homes per year, the South East a
deficit of 9,158 homes. The only area of the UK in which levels of house
building are exceeding the rise in households is the North East, where new homes
are being built at a rate of 7,368, compared to a 5,300 annual increase in the
number of households.
Although developers are keen to increase levels of building, they are being held
back by an antiquated planning system that is extremely slow and shows little
sign of coping with current or future demands, concludes the report.
Robin Plaster, director of Premier Guarantee, says:“The planning system is
already creaking under the weight of existing planning applications and causing
enormous frustration for house builders who are keen to get on and start solving
the housing crisis. The government must modernise the planning system to make it
faster and less complicated, so house builders can get on with the job.”
New innovations in house building could also help increase levels of activity,
provided the planning system is overhauled. Modern Methods of Construction,
where all or part of the construction takes place in a factory, could offer a
solution to the shortage, allowing homes to be built at a much faster rate, as
well as achieving greater quality due to highly automated factory conditions.
Only by embracing such innovations and changing the way we both plan and built,
does the industry have a chance of meeting this demand.”