Source · Select Committees · Public Accounts Committee
Recommendation 32
32
Accepted
MHCLG identifies site viability and planning policy as key housing supply barriers, taking various actions
Recommendation
We pressed MHCLG on the main barriers to increasing housing supply. It replied that one of the key issues is viability of sites, and that it is engaging actively with local government on the use of Section 106 money (funding that local authorities receive from developers, to pay for community and social infrastructure projects) to develop sites. It also explained that there is a need to improve planning policy and raise the percentage of the new 42 Public Accounts Committee, Oral evidence: Asylum accommodation: Home Office acquisition of former HMP Northeye, HC 361, Qq 132, 133 43 Qq 64-65; C&AG’s Report, paras 2.14, 2.19, 2.20 44 TH0031 45 TH0029 46 TH0011 18 social housing supply to which the Government commits itself. MHCLG told us that it was already taking action with regard to housing supply–for example, through setting compulsory planning targets for local authorities; its consultation on the new national planning policy framework, which it announced in July 2024; and more recent consultations on social housing and changes to the right to buy scheme.47
Government Response Summary
The government agrees with the recommendation and plans to publish a housing strategy after the Spending Review 2025, outlining a long-term vision and actions to build 1.5 million homes and increase affordable housing, while also reporting Homes England's exceeding recent targets.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: after Spending Review 2025 6.2 In 2023-24 Homes England exceeded their housing delivery targets by enabling the completion of 32,320 homes against a target of 29,641, facilitating the start of construction for an additional 35,676 homes against a target of 32,967 and unlocked land that is capable of delivering 26,273 further homes against a target of 25,788. 6.3 In terms of affordable housing, Homes England had a target of 19,500 completions in 2023-24 but exceeded this by achieving 22,115 completions. Homes England are currently working with MHCLG officials to design the new AHP programme with new targets set to match the government’s ambition and reflect current market conditions. 6.4 MHCLG will publish a housing strategy which will set out a long-term vision for a housing market that works for communities, builds 1.5 million high-quality homes, and the biggest increase in affordable housing for a generation. It will include the actions that government will take to reach this vision, building on the announcements already made, and providing long-term certainty for the market.