Source · Select Committees · Public Accounts Committee
Recommendation 11
11
We were disappointed that the Department remained unwilling to clarify how it will achieve this...
Conclusion
We were disappointed that the Department remained unwilling to clarify how it will achieve this rate of building, which it now refers to as an ambition rather than a target. We asked why it thought that there should not be greater transparency about how it would achieve 300,000 new homes per year. The Department argued that the ambition was an incredibly challenging one because of uncertainty in the housing market, which made it impossible to be transparent over the path to meeting this ambition. It further explained that the levers for delivering new housing were “not entirely within” Government’s control and were dependent on developers and how they respond to market conditions. It asserted that while it bad been making considerable progress towards the target before the pandemic, the current economic uncertainty had made forecasting what would happen in the housing market far more challenging.30
Government Response
Not Addressed
HM Government
Not Addressed
3.1 The government disagrees with this recommendation. 3.2 The department has and continues to be transparent about its objectives, and the progress towards them. In June 2019, the department published its latest Single Department Plan, including strategic objectives to increase supply. The Departmental Plan will be updated in line with the wider timetable, to be agreed with Cabinet Office and HM Treasury. The department publishes quarterly data on the progress towards raising net housing supply to 300,000 a year, meeting Conservative Party manifesto commitments. 3.3 This government is determined to level up opportunities across the country, building the homes this country needs. 3.4 The department has made significant progress having delivered over 1.8 million new homes since 2010, including 508,000 affordable homes and around 244,000 additional homes last year - the highest level in over 30 years. 3.5 COVID-19 and associated economic conditions have significantly impacted supply. To support house building, the government announced initial funding of £7.1 billion for a new National Home Building Fund, unlocking up to 860,000 homes. This includes £2.2 billion of new loan finance to support housebuilders across the country. 3.6 This forms part of the nearly £20 billion in multi-year capital investment announced in the 2020 Spending Review, including the new £11.5bn Affordable Homes Programme will provide up to 180,000 new homes. 3.7 The Planning for the Future White Paper in August 2020 proposed reforms to streamline and modernise the planning process, with enough land and the long-term conditions for increased supply.