Select Committee on Environment, Transport and Regional Affairs Memoranda


Memorandum by the Chartered Institute of Housing (UWP 30)

THE PROPOSED URBAN WHITE PAPER

  The Chartered Institute of Housing is the professional organisation representing all those working in housing. Our purpose is to take a leading and strategic role in promoting the provision and management of good quality, affordable housing for all. CIH has over 15,500 individual members working for local authorities, registered social landlords, academic institutions, the Rent Service and within the private sector.

INTRODUCTION

  The Chartered Institute of Housing (CIH) welcomes the opportunity to submit written evidence to the Environment, Transport and Regional Affairs Committee for their Inquiry into the proposed Urban White Paper. The Report of the Urban Task Force, led by Lord Rogers of Riverside, and the government's work on social exclusion, are likely to be central to the Committee's deliberations. CIH supports the government's aim of creating an urban renaissance to regenerate our towns and cities and protect our countryside from over-development. Other government aims, such as promoting social inclusion and ensuring that everyone has the opportunity of a decent home are equally important and these are given due emphasis in our response.

  Where appropriate, we highlight other documents produced by CIH giving more detailed information on the points made. We are happy to provide further material to clarify or expand on any aspects of our response. Our comments are structured around questions selected from those listed in Press Notice 02/1999-2000, 1 December 1999, which announced the Inquiry.

SUMMARY OF OUR RESPONSE

  An Urban White Paper is needed to respond fully to the challenges of the Urban Task Force report, and send out a clear message to all relevant stakeholders of the government's determination to achieve an urban renaissance.

  Local authorities have already a wide range of relevant responsibilities and the democratic legitimacy to be the strategic leaders and co-ordinators of change at local level. The Urban White Paper should examine the need for additional powers, for example, to enable greater flexibility over local authority involvement in companies.

  Models for delivering urban regeneration, such as Urban Regeneration Companies and Housing Regeneration Companies, should be encouraged. Such models would build on the important existing contribution of Registered Social Landlords to housing-led regeneration.

  The planning system must be modernised to fulfil a new, more proactive role of facilitating positive change, rather than arbitrating over the use of land. Detailed changes to planning policy guidance are needed.

  Reforms to enable local and regional agencies to impact on the urban environment are essential, but are not sufficient to tackle the root causes of decline in some parts of our Northern cities. A national response to address the impact of long term structural decline in the employment base in parts of the UK is required.

  The possession of strategic vision is vital. However, the detail of implementation must also be right if urban renaissance is to be achieved. This means relevant agencies having enough flexibility to deal with the local context, and achieving the right balance between idealism and realism, for example, in relation to development densities and restrictions on car parking provision.

  The problems of low demand neighbourhoods should not obscure the need for new housing development elsewhere, particularly affordable housing, including in rural locations, where this contributes to the sustainability of rural communities.

  Below we consider in more detail selected questions from the Inquiry press notice.

  Question: What added value a government White Paper should provide in addition to other government announcements on urban policy

  An Urban White Paper would enable the government to respond fully to the wide ranging challenges of the Urban Task Force report. Such a White Paper would need to build on and integrate with other existing and anticipated government statements, in particular, the expected Housing Green Paper, Rural White Paper and National Strategy for Neighbourhood Renewal. By responding in a comprehensive, rather than piecemeal fashion, it would be an opportunity to give a clear and unequivocal message to local authorities, RSLs, private developers and other stakeholders of the government's determination to create an urban renaissance and tackle social exclusion. It would also assist in the process of turning the vision of the Urban Task Force report into a set of practical propositions. The White Paper would set the framework for more detailed reform to government guidance and, where necessary, legislation, to assist in bringing the urban renaissance into being.

  Question: Which of the recommendations of the Report of the Urban Task Force should be a priority for implementation?

  To a large extent, the Task Force's proposals are inter-dependent and need to be seen as a package. Nevertheless, we highlight below some of the areas that CIH believes must be addressed with particular urgency. We also raise questions about some aspects of the Task Force's proposals that we believe could be counter-productive to the government's aims. Our comments are listed under the headings used in the report's Executive Summary.

DESIGNING THE URBAN ENVIRONMENT

  CIH agree that high quality design work is vital in ensuring sustainable development in our urban neighbourhoods. In many areas, the density of new residential development will need to increase to accommodate additional households on previously used sites. The quality of design employed in such schemes will be crucial to their success and many of the Task Force's proposals to improve design standards are welcome. However, if these proposals are to be successful in retaining and attracting people to urban environments there needs to be a realistic approach to their needs and preferences.

  For example, social landlords often find single bedroom and bed-sit accommodation difficult to let even to single people, and research has shown that single people often aspire to two or three bedroom houses (HRF/NHBC, 1998). Households containing persons with a disability may need additional space and/or guaranteed parking close at hand. The provision of one parking space per household may be acceptable in many locations, but the proposal for this as a maximum standard for all new urban residential development seems inflexible and excessive.

  If design standards are overly restrictive, there is a danger that new developments, in any but the most attractive locations, will not attract medium and high wage earners. This would undermine the government's aims of urban regeneration and mixed communities, and lead to continuing demands from the public for development in urban-fringe or rural locations. As a starting point, the development of maximum density standards which reflect local circumstances, set alongside the minimum standards proposed by the Task Force, is required.

MANAGING THE URBAN ENVIRONMENT

  The Task Force report calls upon local authorities to provide strong, strategic leadership on behalf of their local populations to lead the urban renaissance at local level. While local authorities already have wide ranging powers and responsibilities, the report calls for local authorities to be assigned a new strategic role in ensuring management of the whole urban environment. This proposal should be given serious consideration, but would need to be matched by the availability of the resources needed to make this role effective.

  More specifically in relation to housing, CIH believes that local authorities should be given a stronger strategic role to enable them to properly influence the housing market in their area, by working with agencies such as lenders and builders. CIH is currently working with the Council of Mortgage Lenders on research assessing the extent to which local housing authorities currently reflect private sector housing issues in their local housing assessments (Blackaby, 2000 forthcoming).

  The Task Force report recognises that high quality urban management is essential to build on and sustain capital investment in the built environment. Their call for pilots to evaluate models of neighbourhood management chime with those of the Social Exclusion Unit's Policy Action Teams (PATs). CIH understands the requirement for a holistic approach to the problems of deprived neighbourhoods, and the need for ongoing intensive management to consolidate investment. In many deprived neighbourhoods, housing professionals already provide an on-the-spot link between town hall managers and communities.

DELIVERING URBAN REGENERATION

  The Rogers report calls for the creation of Urban Regeneration Companies (URCs) and Housing Regeneration Companies (HRCs) as crucial delivery mechanisms for regeneration. URCs would include directors from a range of stakeholders with an interest and role to play in regeneration. These would normally include the local authority, a Registered Social Landlord (RSL), community representatives and the Regional Development Agency (RDA). To be fully effective some of the restrictions placed on local authorities' involvement in companies would need to be reviewed. HRCs could be a free-standing RSL or a subsidiary of an existing one.

  Given appropriate legal and regulatory flexibility, both types of vehicle could play a key role in regeneration. HRCs could be particularly important in regenerating mixed tenure and/or low demand inner city areas. CIH is conducting research into options for RSL structures given the variety of new activities in which many are now engaged, including regeneration and "housing plus" services (CIH, 2000).

INVESTING IN SKILLS AND INNOVATION

  CIH agrees with the Task Force that professionals will require new skills if the urban renaissance is to be achieved. CIH is reviewing its own professional qualifications in the light of this changing context. A crucial aspect of this is the need to ensure that professionals from different disciplines work together more effectively. CIH is talking to the other built environment professions about how this can be achieved both for new entrants and through programmes for continuing professional development.

MANAGING THE LAND SUPPLY

  Public concern has been raised about government projections of household growth and how this feeds into requirements for new housing. CIH accepts the concerns of the public and the government about the need to avoid unnecessary development on greenfield sites, especially where this undermines urban regeneration. Nevertheless, the Government's own White Paper, Planning for the Communities of the Future recognises the damaging effects of providing insufficient land for housing, for example, higher land prices, more enforced sharing, and, in extreme cases, homelessness.

  Current government proposals call for a move away from the "predict and provide" approach, to a more devolved mechanism led by Regional Planning Bodies (RPBs). CIH agrees with the Task Force's assertion that under these new proposals for allocating land for housing, clear procedures are needed to ensure the early correction of an emerging under-or over-supply. In cases where RPBs propose a move away from an approach based on central government derived projections, a sound, nationally accepted methodology is required to enable the production of regional housing assessments. The report of PAT 7 on Unpopular Housing recommended that RPBs link with RDAs and sub-regional groupings of local authorities to agree policies and levels of housing provision that better match demand and supply and provide choice while avoiding over-provision (DETR, 1999). Urban capacity studies have a role in determining how far urban areas can meet housing need, but they must not become the tool for estimating that need.

  The need for clear regional targets which include provision for affordable housing has been recognised by the Environment, Transport and Regional Affairs Committee. CIH, together with the National Housing Federation, Room and Shelter supported this point in their National Blueprint for Delivering Affordable Housing through the Planning System (CIH/NHF/Room/Shelter, 1998).

  The government is also proposing a move to a sequential approach of directing development to previously used sites. CIH support this principle, but have highlighted potential problems with such an approach if applied inflexibly. These include: increases in property values for brownfield sites making the delivery of affordable housing more problematic; difficulties in integrating land release with regeneration funding programmes; sustainability tests linked to this approach could deter the provision of affordable housing in rural areas.

  CIH are awaiting the release of finalised Planning Policy Guidance Notes (PPGs) affecting many of these issues. If the concerns raised by CIH and other agencies on the consultation drafts of these PPGs are not fully addressed, these issues should form part of the proposed Urban White Paper. (Further CIH comment on draft PPG Note 3 and a joint response to the draft PPG 11 from CIH, Shelter and the National Housing Federation are available.)

PLANNING FOR CHANGE

  CIH support the Task Force's view that the current land use planning system is too concerned with controlling development rather than playing an active role in securing positive change. The planning system should be a tool to facilitate the delivery of the government's wider economic and social objectives. This will require significant changes to the planning system and the way it operates.

MAKING THE INVESTMENT

  The Task Force report outlines a range of measures for attracting the financial resources—public and private—that will be needed to power the urban renaissance. Proposals include tax measures, new financial instruments for attracting institutional investment into the private rented sector, and national public-private investment funds for area regeneration projects. CIH agrees with the Urban Task Force that the objective of an urban renaissance should be included in the terms of reference for the forthcoming Comprehensive Spending Review and call for these and other measures outlined in the report to be given serious consideration.

  Our urban areas need holistic regeneration reflecting the complex mix of economic, social and physical problems that exist. Improving housing conditions is an essential element of a holistic approach, but experience has shown that it is often not enough to turn around declining neighbourhoods. The Task Force report advocates debt cancellation to facilitate transfers of council housing to dedicated management organisations able to make use of private finance to improve conditions and raise standards in public housing. Stock transfer will continue to have a role, and CIH welcome the government's moves to consider large scale transfers in cities such as Coventry and Birmingham. Public spending constraints are, however, likely to restrain the extent of debt write-offs and other options need to be considered, not least in cases where tenants are resistant to transfer. Together with the Local Government Association, CIH produced a report describing a range of models for separating the strategic and management functions of local authority housing departments, as advocated by Rogers and by the government itself. Such models could prove attractive where transfer is impractical, providing that these efficiency improvements were accompanied by some linkage to investment needs (HACAS and Trowers & Hamlins, 1999).

  Poor conditions in some parts of the private housing sector—both for owner-occupiers and private renters—also require attention and investment. It is unclear at this stage to what extent the problems of this sector will be addressed in the forthcoming Housing Green Paper (CIH, 1999). The Task Force report highlights the problems of areas with large numbers of pre-1919 terraced housing, often with high levels of unfitness and disrepair, particularly those in more socially and economically marginal areas. CIH advocated a package of grants, loans, equity stakes and tax relief in its report Sustainable Home Ownership (CIH, 1997), and many of these kinds of ideas are also reflected in the Task Force report.

  Question: The future for urban areas suffering from low demand for housing and social decline.

  Housing providers are acutely aware of the problems of changing patterns of demand for housing. CIH were pleased that the PAT 7 report identified the complexity of this issue. For example, it recognised that the phenomenon of unpopular housing reflected the existence of both surplus housing in some areas, but also accommodation that is unpopular even in locations where acute pressure on housing ensures that vacancies can be filled. This problem is not exclusive to social housing, and needs to be tackled in all tenures. Our latest research into this issue focuses on the impact of low demand on housing associations (CIH 2000, forthcoming).

  As the PAT 7 report highlighted, a range of responses to the problems of unpopular housing need to be addressed at local, regional and national level. Action required includes: improving links between regional planning bodies and RDAs to avoid under- or over-provision, more intensive housing management, improving the housing stock and surrounding environment, better marketing of housing, and selective clearance. Where clearance is required, full involvement of local communities is needed to ensure that this is carried out in a sensitive way and avoid the mistakes of the past. This is particularly important as many of those "left behind" in unpopular neighbourhoods are vulnerable households, including many older people and those from minority ethnic communities.

  There are, however, limits to what can be achieved by action at regional and local level. Our report Low Demand: Separating Fact from Fiction (Holmans and Simpson, 1999) pulls together a range of data illustrating the steady trend of movement from cities in the North to the increasingly populous South. National action is required to reduce the economic disparities within the UK which are the key driving force of population movement. Financial and other incentives should seek to push employment back into the areas currently losing population. While even this action may not be enough to reverse decline in those neighbourhoods with the most entrenched problems, in other more marginal areas, economic growth can play a vital part in stabilising the community.

  Question: The consequences for the urban renaissance of housing and business development on greenfield sites.

  CIH agrees with the views of the Urban Task Force and PAT 7 that inappropriate greenfield development can undermine urban renaissance. Nevertheless, some greenfield development will be necessary to meet housing and other needs. Our report Low Demand: Separating Fact from Fiction confirmed that the phenomenon of changing levels of demand had not significantly affected the number of new affordable homes that are needed (CIH, 1999). Around 85,000 new affordable homes are still required each year which is more than double the number currently being built. These new homes must be provided as part of mixed, inclusive communities where economic or demographic analysis shows they are needed, including where this can help to sustain rural communities. CIH believes that mixed tenure communities should become the norm. As part of this process, Planning Circular 6/98 should be reviewed to include the removal of the thresholds that make it harder for local authorities to achieve mixed residential development on small sites.

  References

  CIH (2000) Winning Structures—Registered Social Landlords in a changing world, CIH: Coventry

  CIH (2000 forthcoming) The economic consequences of low demand for Registered Social Landlords,  CIH: Coventry

  CIH (1999) Putting the House in Order: Housing professionals' agenda for legislation, CIH: Coventry

  CIH (1997) Sustainable Home Ownership—New policies for a new government, CIH: Coventry

  Blackaby (2000 forthcoming), Local Housing Assessments: A Review of their coverage of the private  housing market, CIH/CML

  CIH/NHF/Room/Shelter (1999) National Blueprint for Delivering Affordable Housing through the  Planning System

  DETR (1999) Unpopular Housing, DETR: London

  HACAS and Trowers & Hamlins (1999) New Structures for Council Housing, CIH/LGA

  Holmans and Simpson (1999) Low Demand: Separating Fact from Fiction, CIH: Coventry

  Housing Research Foundation/National House Builders Council (1998) Home Alone, NHBC: London

  David Fotheringham

  Policy Manager

  January 2000


 
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