The RICS has criticised the government’s comprehensive spending review for providing planning and housing with the “bare minimum” funding needed and “throwing up as many questions as it answers”.
RICS housing policy panel chairman Michael Newey said: “While the money announced by the chancellor is welcome, it is the bare minimum needed.
“Any extra spending has to be carefully targeted and properly managed if the problem of lack of low-cost housing in high-demand areas is to be met.”
Newey welcomed the move towards regional strategies for planning and housing which will be detailed by the deputy prime minister later this week, but said that the proposals lacked clarity.
He continued: “The proposed new regional bodies designed to bring together planning and housing investment could help ease that shortfall [in housing] and increase the supply of new homes, which is at its lowest since 1924.
“But it is not immediately clear how they will relate to the Regional Development Agencies – whose own housing powers are to be strengthened – or with the Regional Assemblies.”
Although the main beneficiaries of the review were education and the NHS, the chancellor announced yesterday that money injected into housing would rise by over £1bn pa, from £4.8bn to £5.9bn pa by 2005-06.
Meanwhile, the RDA’s budgets will be increased from £1.6bn pa to £2bn to boost regeneration and reflect a larger role in transport and housing.
High-performing planning authorities will receive three-year grants to improve planning services.
EGi News 16/07/02
