Tag: Housing and Communities

The press release issued by the Ministry of Housing, Communities and Local Government on 28 November 2024.

Funding reform kickstarted to fix the foundations of local government and better use taxpayer cash.

Long overdue reforms to council funding to ensure it offers better value for money have been outlined today (28th November) alongside more money for councils to help fix the foundations of local government.

The government will launch a consultation next month on its long-term proposals to fundamentally improve the way the sector is funded, moving away from an outdated and inefficient approach – which has seen some councils increasing their level of reserves and others struggling to deliver services and balance budgets – and shifting to a fairer system which matches funding with need.

This major reform, which will be subject to extensive consultation with local leaders, will ensure public money is spent more efficiently on improving services local people rely on through a fairer system which builds on the lessons learned through the previous government’s review of Relative Needs and Resources, better known as the ‘Fair Funding Review’, which highlighted the problem of how councils are funded and the need for change but was delayed and never implemented.

It will be launched alongside a consultation on the Provisional Local Government Finance Settlement for 2025-26, which includes a new £600 million Recovery Grant for areas most in need, an increase to the Social Care Grant by £680 million, a new £250 million Children’s Social Care Prevention Grant and the repurposing of grants to offer better value for money for the taxpayer and deliver better outcomes for local people, including the most vulnerable.

Overall, local government is expected to receive a real-terms increase in Core Spending Power of around 3.2% and no council will see a reduction in this after taking account of any increase in council tax levels. On average, places with a significant rural population will receive an increase of around 5% in their Core Spending Power, and will be better off this year compared with 2024-2025.

Deputy Prime Minister Angela Rayner said:

For too long councils have been let down by an outdated and inefficient funding system which has led to public services creaking and taxpayers’ money not being spent efficiently.

Whilst there’s no magic wand to fix what we’ve inherited, we’re taking the necessary steps to fix the foundations of local government by creating a fairer system and ensuring every penny is spent on the services so many people rely on every day.

The £680m increase for the Social Care Grant will help local authorities address social care pressures, whilst the new £250m Children’s Social Care Prevention Grant will help ensure children stay with their families or in safe loving homes where possible as part of a planned overhaul of the system next year. Legislation will be brought forward to crack down on the profiteering of vulnerable children and ensure local government can deliver safe, loving homes for children in care.

The Budget also set out more than £4 billion of investment in local government – of which £1.3 billion will come through the Settlement – to build new homes, invest in Special Educational Needs and Disabilities and improve homelessness services, and tackle potholes.

On funding reform, further consultations are planned before the final proposals will be developed, published and again consulted on ahead of the provisional settlement for 2026-2027 – ensuring the views of local leaders are reflected, in another demonstration of the government’s push to reset relationships with councils.

Implementation of these reforms will take place alongside multi-year funding settlements, the first in 10 years come 2026-2027, allowing local authorities the certainty to plan and invest for the long-term. The number of funding pots will also be reduced to allow councils to have more flexibility to judge local priorities, to meet the needs of local people, and to decide how best to deliver on national priorities.

The Provisional Local Government Finance Settlement for 2025-2026 will further maintain the previous government’s referendum threshold for council tax at 3% with 2% for the adult social care precept, balancing the need between protecting local taxpayers who are still feeling the impact of the cost of living and funding local public services.

The government also confirmed it will: provide support to the public sector, including local government, to meet the increased costs of directly employed staff arising from changes to employer National Insurance Contribution (NICs); plans to merge grants and simplify funding; and a commitment to overhauling the local audit system and to hold talks with local government over reorganisation if appropriate.

Several grants including the Rural Services Delivery Grant and the Services Grant will be repurposed. The government will ensure the impact of rurality on the cost of service delivery and demand is reflected in the public consultation next year. Places with a significant rural population will still on average receive around a 5% increase in their Core Spending Power, which is a real terms increase. No council will see a reduction.

Councils will also receive over £1 billion in total through the Extended Producer Responsibility for Packing scheme (pEPR) which will cover the existing costs they incur for managing household packaging waste, provide additional funding for new legal duties, and support much needed investment in the waste and recycling industry. Provisional payment figures will be shared with councils by the end of November.

The press release issued by the Department of Housing, Communities and Local Government on 27 November 2024.

New regulations to remove a local connection requirement for veterans to access social housing.

Veterans will have greater access to social housing thanks to the removal of a local connection requirement made by the government today.

The new changes, made by the Housing Minister in Parliament today, exempt all former UK Armed Forces Veterans from rules that restrict access to social housing for those that do not have a connection to the local area. This will make sure veterans across the country have access to the housing support they need and can find a place to call home.

The changes apply to councils with local connection or residency tests determining who can currently qualify for social housing. This will ensure veterans cannot be unfairly penalised where such requirements are in place, recognising the unique challenges they face in trying to build up a connection in a specific local area.

Housing and Planning Minister, Matthew Pennycook said:

“Those who put their lives on the line in the service of their country should have access to the housing support they need – this government is making sure they do.

“We will continue to do all we can to ensure homes are there for heroes, as part of our commitment to delivering the biggest increase in social and affordable housebuilding in a generation.”

Minister for Veterans and People, Alistair Carns OBE MC MP said:

“This is a government that is committed to renewing the nation’s contract with those who serve and have served and today is an important step forward in delivering on our promise that homes will be there for heroes.

“Today’s action shows our government is delivering our manifesto commitment to strengthen support for our Armed Forces communities and to ensure veterans have access to the housing support they need.”

The Deputy Prime Minister has previously written to local councils reminding them of their obligation to prioritise veterans for social housing and the guidance is being updated to reflect these changes.

Wider government support is also in place to help more veterans into secure and permanent accommodation. This includes a further £3.5 million to the Reducing Veteran Homelessness Programme and Op FORTITUDE, which is the single referral pathway for veterans at risk of homelessness.

Alongside these changes, the government has already given councils greater flexibility to use Right to Buy receipts to build and buy more homes and provided an additional £450 million for councils to secure homes for families, including veterans, at risk of homelessness.

Government investment in housing will also increase to £5 billion for next year and this includes an extra £500 million in new funding for the Affordable Homes Programme to deliver tens of thousands of new affordable and social homes across the country.  In turn, supporting the government’s commitment of delivering 1.5 million homes by the next Parliament and generating economic growth.

Further information

• The government’s written ministerial statement confirming today’s changes is available here.
• The regulations will come into force on Wednesday 18 December.
• On 24 September, the Prime Minister also set out his ambition to improve access to social housing for young care leavers and victims of domestic abuse. Ministers will convene roundtables to explore the detail of these exemptions and bring forward further regulations in due course.

The press release issued by the Department of Housing, Communities and Local Government on 27 November 2024.

Billions of pounds in guarantees for housebuilders are now open for business as part of a new support package confirmed by the Housing Minister today.

• Over 20,000 new homes through vital support for SME housebuilders and the Build-to-Rent sector.
• Existing schemes to receive £3 billion more in government support to help deliver 1.5 million homes.
• Builds on £5 billion investment in housing for next year.

Billions of pounds in guarantees for housebuilders are now open for business as part of a new support package confirmed by the Housing Minister today.

As announced at the Budget, an additional £3 billion in housing guarantees will be available to help builders apply for more accessible loans from banks and lenders, giving them the confidence they need to get Britain building again.

Government guarantees reduce risk for lenders and encourages them to increase the supply of credit for housebuilders. Housebuilder’s access to credit is a key constraint on growth in the sector, so guaranteeing more lending encourages more housebuilding.

Thousands of new homes will be delivered across the country because of the government’s latest invention, which will see more families onto the property ladder, boost economic growth and create jobs, and support the ambition to build 1.5 million homes over the next five years.

This includes doubling the ENABLE Build scheme to £2 billion so smaller housebuilders and firms can support the delivery of over 10,000 new homes, including more student accommodation and specialised housing for older people, in areas most in need.

Build-to-Rent developers will also see the Private Rented Sector Guarantee Scheme reopen at the end of the year, with nearly £2 billion available to ramp up housebuilding. A broader variety of projects will be eligible to access additional lending, so more housing projects can be completed without unnecessary delays.

Based on the performance of the schemes so far, the government estimates that the increase in guarantees would support over 20,000 more homes.

Housing and Planning Minister, Matthew Pennycook said:

“SME housebuilders and Build to Rent operators have a crucial role to play in delivering the government’s target of 1.5 million new homes in this parliament.

“The significant additional support provided by our housing guarantee schemes will enable them to access low-cost loans and support the building of thousands of new homes across the country”.

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said:

“SME house builders have a crucial role to play in helping to deliver the Government’s ambitious target to build 1.5 million new homes over the next five years. In recent years, small house builders have faced a particularly difficult set of financial challenges. Diversification of the UK’s housing market is essential to deliver the number of homes needed.

“Today’s Government announcement providing greater support for small housebuilders is welcome news. For the Government’s plans to succeed, it will be crucial that this lending is available for those small house builders who need it most and can build the homes this country needs.”

Louis Taylor, CEO, British Business Bank said:

“We welcome this £1bn expansion of the Bank’s ENABLE Build programme by the government. Unlocking finance for smaller housebuilders is more important than ever, not just to help build homes across the UK’s Nations and regions and provide people with security, but also to stimulate much-needed growth for the UK economy. Combined with the ENABLE Build programme’s recent expansion to include provision to non-bank lenders, this means that the sector will benefit from both an increased volume and choice of finance.”

Richard Green, Partner at Venn Partners said:

“Build-to-rent can play a key role in the UK’s private rented sector, delivering high quality, well managed homes funded by institutional investors. Venn looks forward to continuing to support the sector with attractive loans from the PRS Guarantee Scheme”.

To accelerate housing development and achieve the ambition to build 1.5 million homes over the next five years, the government has already:

• Announced an overhaul of the planning system through a consultation on reforms to the National Planning Policy Framework, including new mandatory housebuilding targets for councils:
• Launched a New Homes Accelerator group to unblock thousands of new homes stuck in the planning system or partially built.
• Introduced ‘brownfield passports’ to ensure where planning proposals meet design and quality standards, the default answer to planning permission is yes:
• Set up an independent New Towns Taskforce, as part of a long-term vision to create largescale communities of at least 10,000 new homes each:
• Awarded £68 million to 54 local councils to unlock housing on brownfield sites:
• Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.

The press release issued by the Department of Housing, Communities and Local Government on 13 November 2024.

The Office for Place will be closed down and the expertise of its staff redeployed within the Ministry of Housing, Communities and Local Government across the country, where support for design and placemaking will continue.

The decision was announced through a Written Ministerial Statement on 12 November 2024.

The press release issued by the Ministry of Housing, Communities and Local Government on 1 October 2024.

Our expert and independent New Towns Taskforce, chaired by Sir Michael Lyons, met today (1 October 2024) in Cambridge.

Taskforce members took the opportunity to explore the ongoing work in Cambridge and learn lessons from the city. The Taskforce heard from key players in the city, including officials from the Greater Cambridge Shared Planning Service and other officials from across the Greater Cambridge area. Greater Cambridge has a vital role in kickstarting economic growth across the country, and the Taskforce heard about award-winning developments in the local area plus the work to overcome key challenges, including water scarcity, to support future sustainable growth.

The Taskforce also discussed key workstreams related to the new towns programme, including developing its spatial mapping work.

Visits by the New Towns Taskforce are focused on learning lessons from places that are already delivering housing at scale. The Taskforce will present a final shortlist of recommendations on appropriate locations to ministers within the next year. No decisions have yet been made on the location of any new towns.

The meeting today comes 2 weeks after the Taskforce held their inaugural meeting in Milton Keynes on 17 September. Taskforce members have met again within the fortnight to continue their mission to address the national housing demand and to help boost economic growth, as outlined to the group by the Deputy Prime Minister and the Housing Minister last month.

The Taskforce will meet again in early November.

The press release issued by the Ministry of Housing, Communities and Local Government on 30 September 2024.

Deputy Prime Minister Angela Rayner has kickstarted a new “partnership approach” to working with London Mayor Sadiq Khan to boost housebuilding in the capital.

A review of the London Plan for housing ordered by the last government has been withdrawn by the Deputy Prime Minister to kickstart a new “partnership approach” aimed at boosting housebuilding in the capital.

In March, the previous Secretary of State directed London Mayor Sadiq Khan to partially review parts of the London Plan – which sets out the strategy as to how the city will develop and grow.

The Deputy Prime Minister has now withdrawn that mandated review, but has also set out that action is needed to deliver the homes London needs.

In a letter to the Mayor, the Deputy Prime Minister said she recognises the issues London faces and will work with the mayor to ensure he takes all possible steps to boost housing delivery and deliver the homes London needs. Withdrawing the direction will allow the government and Greater London Authority to take “a new partnership approach” to tackle the housing crisis.

Deputy Prime Minister Angela Rayner said:

I know Mayor Sadiq Khan shares my commitment to tackle the housing crisis and boost economic growth to deliver real opportunities for Londoners.

Our new approach will take more fundamental action and focus on a partnership approach to build the housing that London needs and unlock the city’s economic potential.

Under proposed changes to the National Planning Policy Framework, London needs to build around 80,000 new homes per year – a record and ambitious number for the city at over double the current average number of homes built a year in the capital.

The government and the Mayor are committed to working together to take all possible steps to deliver these homes, including through proposed changes to housing targets and other reforms to the planning system.

In addition to this, the New Homes Accelerator will see the Ministry of Housing work with Homes England to further speed up housing delivery, and money will also be available for London through the £150 million Brownfield, Infrastructure and Land Fund.

This is part of a wider push to build 1.5 million homes over the next five years by overhauling the planning system and restoring mandatory local housing targets across the country.

The press release issued by the Department of Housing, Communities and Local Government on 24 September 2024.

UK Armed Forces Veterans to be given better access to social housing.

All UK Armed Forces Veterans will be exempt from rules which require a connection to a local area before accessing social housing. This is in line with the manifesto commitment to strengthen support for our Armed Forces communities and to ensure veterans have access to the housing support they need.

Whilst not mandatory, the vast majority of councils (89%) have a local connection or residency test in place to determine who can qualify for social housing. These changes will mean that where such requirements are in place, veterans are not unfairly penalised.

Other groups who can have difficulty demonstrating a local connection – care leavers and domestic abuse victims – will also be exempt from the rule. This delivers on the commitment in the response to the consultation on social housing allocations, published earlier this month, to support the most vulnerable to access social housing.

The government is writing to councils to remind them they should prioritise veterans, care leavers and domestic abuse survivors for social housing. Regulations will be brought forward in due course, with Ministers hosting roundtables with the sector to explore the detail of these changes.

Already the government has given councils more flexibility to use their Right to Buy receipts to build and buy more social homes and allocated an additional £450 million for councils to secure homes for families at risk of homelessness.

Further plans will be set out at the next fiscal event to give councils and housing associations the rent stability they need to be able to borrow and invest in both new and existing homes.

The press release issued by the Department of Housing, Communities and Local Government on 22 September 2024.

The government will consult on a new Decent Homes Standard for the rented sectors.

• Government to consult on a new Decent Homes Standard for the rented sectors
• Awaab’s Law legislation for the social rented sector will be brought forward this autumn, and protections will be extended to private rented sector through Renters Rights Bill
• Introducing new access to information requirements for housing associations so tenants can access the information they need to hold their landlords to account

The government will consult on a new Decent Homes Standard for the rented sectors.

The consultation, which will launch as soon as possible, will look to ensure safe, secure housing is the standard people can expect in both social housing and private rented properties.

The government will also bring forward legislation for Awaab’s Law in the social rented sector this autumn, so hazards such as damp and mould must be investigated and remedied to set timescales. Implementing this legislation for social housing and extending protections to the private rented sector will support tenants to secure faster repairs, reducing health and safety risks.

Alongside this we will introduce new access to information requirements for housing associations, to enable tenants from the 2.5 million households managed by housing associations to hold their landlords to account and drive up the quality of the housing and services they provide.

We will also introduce a Competence and Conduct standard for the social rented sector that will ensure staff have the right skills, behaviours and experience to carry out the role they have in supporting often some of the most vulnerable in our society. The new standard, which will include qualification requirements for senior managers and executives, will help to raise standards across the sector, ensuring tenants receive a professional service and are treated with respect and dignity.

The government will bring forward further plans for high quality housebuilding through the revised National Planning Policy Framework this autumn, following the NPPF consultation which closes on 24 September.

The press release issued by the Department of Housing, Communities and Local Government on 22 September 2024.

The government is continuing to deliver devolution for all corners of the country, with a commitment to deliver full devolution across the North.

• Government will prioritise remaining Northern areas in the next wave of devolution deals
• Progression for deals covering Lancashire, Greater Lincolnshire, Hull and East Yorkshire and Devon and Torbay announced earlier this week will be prioritised
• Backing advanced manufacturing in the West Midlands and life sciences in West Yorkshire by releasing this year’s funding for the Mayors’ Investment Zones

The government is continuing to deliver devolution for all corners of the country, with a commitment to deliver full devolution across the North.

The next wave of devolution deals will work to ensure the remaining areas in the region not yet benefitting from greater devolved powers are supported to deliver agreements that work for their communities.

The commitment confirmed today follows the government’s announcement earlier this week that four devolution agreements will progress in Hull and East Yorkshire, Greater Lincolnshire, Lancashire, and Devon and Torbay.

The government will also release this year’s funding for two Investment Zones, delivering high quality jobs and attracting private sector investment, focusing on advanced manufacturing in the West Midlands and life sciences in West Yorkshire.

Investment Zones have been established in a number of Combined Authorities in England, combining tax incentives and flexible funding for research and development, skills, business support, local infrastructure and planning.

Further government action to deliver devolution includes:

• The English Devolution Bill announced in the King’s Speech;
• Establishing the Council of the Nations and Regions, with more details to be announced in due course;
• Asking existing mayors to develop Local Growth Plans for their areas to help drive regional growth. Greater Manchester, one of the places where devolution has existed for the longest and the powers are deepest, has been one of the UK’s fastest growing areas over the last 20 years, and is forecast to grow by more than the national average in coming years; and
• The devolution agreements announced this week means that over 60% of the country will be covered by a devolution deal.

The press release issued by the Department of Housing, Communities and Local Government on 22 September 2024.

As part of its brownfield first approach to development, the government has announced plans to support and expedite approval of urban sites, such as car parks.

• Call for evidence to look at how to accelerate building in urban areas.
• Part of the government’s brownfield first approach to deliver the homes in the areas people need.
• Sits alongside plans to deliver 1.5 million homes this Parliament.

As part of its brownfield first approach to development, the government has announced plans to support and expedite approval of urban sites, such as car parks.

As signalled in the National Planning Policy Framework consultation, the government is taking further steps toward the introduction of an effective ‘brownfield passport’ to ensure where proposals meet design and quality standards, the default answer is yes.

A call for evidence will be launched on options to further increase certainty in relation to brownfield development. These will include bold proposals that provide far greater clarity as to the principle, scale, and form of brownfield development with a view to lowering the risk, cost and uncertainty associated with securing planning permissions.

The options will then be discussed with key stakeholders, before specific proposals are consulted on, and any new policies implemented.

As part of its ambition to deliver 1.5 million homes this Parliament, the Government has already taken steps to deliver on its brownfield first approach through the NPPF consultation, setting out changes to clarify brownfield development is acceptable in principle. The consultation closes on 24 September.