Signs of the home-owner’s apocalypse, number 17: Planning Delivery Grant August 10, 2006
Posted by Brickonomist in Media, NIMBYs, Planning.add a comment
Here’s a wonderfully hysterical story from Monday’s Telegraph about how
The Government intends to reward councils with cash if they give planning permission for hundreds of thousands of new homes to be built in attractive parts of England where property prices are high.
(Funny how the Telegraph only cares about areas with high house prices, isn’t it?)
Let’s see how many things they managed to mislead their readers about in a single story, shall we?
No environmental conditions are placed on the scheme
There doesn’t need to be. The housing targets are set as a result of a regional planning process which takes great account of environmental impacts.
There is no apparent ceiling on the money that councils could make if they exceed the targets for new homes set by Ruth Kelly, the Communities and Local Government Secretary.
Well, the total pot of money available for the Planning Delivery Grant in 2007/08 will be only £120m, equivalent to a whopping 0.6% of the total Council Tax take. Currently ‘Housing Delivery Grant’ accounts for only 20% of that (see page 4 here), with the remainder rewarding perceived good performance in adminstering planning decisions and policy-making. In a separate consultation paper, the government seems keen to tilt the balance more in favour of incentivising housing delivery, but there is no indication that the total pot available is going to increase.
Councils not reaching a threshold would be starved of cash.
If you call not receiving a very small bonus on top of a huge income from council tax, business rates, etc being ’starved’, yes. If not, then that’s just nonsense.
Government figures show that five million new homes are needed in England over 20 years, 1.5 million of them because of record levels of immigration.
Now, as it happens, I think the proposed Housing and Planning Delivery Grant is a pretty crude and bureacratic way to incentivise housing supply at the local level. But I also think it’s too insignificant to make much of a difference. Of course it was not in the interests of Charles Clover or the Telegraph’s editors to inform their readers of the amount of money involved, since that would have got in the way of their primary objective of stirring up paranoid visions of class warfare.
Sensible comment on demolitions shocker June 24, 2006
Posted by Brickonomist in Housing economics, Housing markets, Media, Regeneration.6 comments
Good to see someone commenting on this who has actually taken time to find out what’s happening. John Perry in Public Finance:
In the past few months alone, we have seen veteran journalist Sir Simon Jenkins in the Guardian and the programme Tonight with Trevor McDonald both attacking the notion of demolishing older houses. The Tonight programme, like several others, focused on what could be done by throwing money at one particular house, ignoring the problems of the wider area.
Meanwhile, Jenkins refers regularly to ‘Yvette Cooper’s proposal to demolish 150,000 Midlands and north country terrace houses’. Apart from the exaggeration, of which more later, there is the turn of phrase, which evokes stone-built cottages in Wensleydale rather than pokey two-up, two-down terraces in Liverpool or Stoke-on-Trent.
The prime mover against demolition has been the pressure group Save, whose assessment (on its website) is that as many as 400,000 houses will come down in the pathfinder areas. To those anxious to get on the housing ladder in the south of England, or who have invested their savings in modernising a terraced house, these figures must seem to be a travesty of housing policy. But put them under closer scrutiny, and the argument crumbles.
For a start, there are still something like 2.5 million Victorian terraced houses in England. The vast majority of these form excellent homes or can be modernised with some modest investment. But some are obsolete. That is, they are either too small, too badly designed or in too poor condition to be satisfactorily improved. Or – and this is often the case in the pathfinder areas – there are simply too many houses of the same type, age and size in the same place. For example, in Stoke-on-Trent, more than half of the housing stock is Victorian, consisting mainly of small, back-of-pavement terraces.
Sometimes, this kind of housing can be transformed and given a new niche in the housing market. As part of the local pathfinder programme, Urban Splash has converted 108 terraced houses in Salford into trendy ‘upside down’ units. There were long queues when they went on sale in April and they are now sold out. But this is redevelopment in all but name – the terraces were totally hollowed out and the yards and back alleys bulldozed. It is a tremendous example of regeneration but its effect depends in part on the scarcity value. Doing this to thousands of houses simply isn’t possible.
Opponents of demolition seem to forget that we do need to replace old houses at some point. The country currently replaces fewer than one in 1,000 houses each year – and most demolition is of tower blocks, not Victorian terraces. No-one – least of all the pathfinder agencies – is contemplating mass demolition. The aim must be selective renewal of the most difficult property, as part of the wider regeneration of poor neighbourhoods.
The other argument deployed by the critics is that local residents are up in arms against demolition plans. As Save says on its website: ‘Householders are being forced out of their beloved homes following minimal and often misinformed consultations.’ But the striking thing about many of the pathfinders is not the level of opposition, but the degree of support that they are obtaining for their renewal plans. Stoke and Hull provide two examples.
The Renew North Staffordshire pathfinder expects to replace just over 12,000 houses over 20 years. Although this might seem a lot, it also aims to refurbish or improve 63,000 houses and build 15,000 new ones. But there is no grand plan for demolition – the process is taking place at neighbourhood level, where master plans are being devised in conjunction with residents. One of the pathfinder’s innovations is the appointment of ‘residents’ friends’ in each area, answerable to the local Citizens Advice Bureau rather than to the council or the pathfinder. They help residents articulate their problems and give them independent advice. By putting unprecedented effort into involving residents, Renew is emerging with plans that have high proportions of local support – even from people whose houses might be demolished.
The Gateway pathfinder is more advanced with its renewal plans for some neighbourhoods in Hull – but still has support from residents. Houses have already been demolished, and local people are demanding faster replacement of the remaining boarded-up properties. Again, the pathfinder has used a variety of methods to find out local opinion and has high levels of support for what it is doing. It has adopted a ‘charter’, which sets out the promises made to local people. Residents engaged in the process have made a video showing their ambitions for their community. The level of support has convinced the local press, which is also calling for faster demolition of the worst houses.
The latest documentation on the pathfinders nationally – available on their websites or that of the Audit Commission – suggests that on current plans they will replace some 60,000 properties. Some further clearance might be planned in later phases, for which the pathfinders have yet to produce detailed plans. But it seems most unlikely that they will reach the total of 150,000 cited by [Simon] Jenkins, much less the absurd maximum put forward by Save. And this is over a period of up to 15 years, including of course many thousands of unpopular postwar developments as well as the cherished ‘north country terraces’. To put the figures in perspective, the pathfinders cover in total more than three-quarters of a million homes.
Deluded of Tunbridge Wells May 29, 2006
Posted by Brickonomist in Environment, Factoids, Homelessness, Media, NIMBYs, Party politics, Planning.2 comments
Greg Clark, Conservative MP for Tunbridge Wells, has a shocking tale to relate (via obliging Times journalist Rosemary Bennett):
Up to 20,000 new homes each year that ministers claim are going up on brownfield sites are actually being built in back gardens, figures show.
That “up to”, friend to alarmists everywhere, sets alarm bells ringing, as does the implication that unsuspecting homeowners are waking up to find that sneaky developers have dumped a block of flats on their geraniums. So let’s do what Rosemary Bennett didn’t and give this factoid more than a moment’s reflection.
Her article goes on:
“Garden grabbing” now accounts for 15 per cent of all new housing as family homes in towns and suburbs are pulled down by developers and replaced with flats.
The Conservatives, who obtained the figures from the Department for Communities and Local Government, said that the public was being “deceived”.
Greg Clark, Tory MP for Tunbridge Wells, said: “Most people assume that when the Government talks about building on brownfield sites it means ex-industrial land, like disused factories and railway sidings. They have no idea that much of it is actually beautiful, green, environmentally important gardens.”
That first line really is a peach. What Clark and Bennett call “Garden grabbing” actually covers any and all construction of new dwellings on previously residential land – including the land occupied not by gardens but by the buildings themselves. So if, for example, someone pulled down a block of flats without gardens and replaced them with semi-detached homes with gardens, Clark would call that “garden grabbing”. The logical extension of the argument is for all current residential land to be frozen in its current state of development for perpetuity or for it to be declared undevelopable greenfield as soon as the current dwellings are demolished. That would naturally create far more pressure for greenbelt land to be developed, but I’m sure Clark doesn’t actually want that.
The article implies that “garden grabbing” is a new or growing phenomenon, since it “now accounts for 15 per cent of all new housing” and Bennett cherry-picks 1997 as a base year since the figure then was only 11 per cent. What she mysteriously omits to say is that back in 1986 (under the Conservative government), fully 26 per cent of all new housing was built on previously residential land, and that this “garden grabbing” accounted for half of all brownfield development. This was revealed by Yvette Cooper in her answer to Clark’s parliamentary question on the matter, but he naturally chose to ignore the far more serious offences of his party colleagues, and Bennett naturally chose not to bother herself fact-checking the figures he spoonfed her.