BPF calls for government action in residential manifesto

The British Property Federation has published a residential manifesto, calling on the next government to unlock private capital to address the undersupply of affordable homes, set a roadmap for the delivery of 30,000 build-to-rent homes per year and remove the current barriers to delivering student accommodation and older people’s housing. The BPF’s Building for Generations manifesto estimates 3.7m people are affected by overcrowding, with a further 1.2m on council waiting lists. It says £10bn of institutional capital is needed for housing associations to address the affordable housing shortfall. It also calls on the government to increase subsidy levels by between £9bn and £14bn through grants and public sector-supported models to help deliver 145,000 homes per year. The manifesto also seeks the introduction of longer-term rent settlements to support security of income and viability, and calls for a review of for-profit registered providers to level the playing field and enable closer collaboration between institutional investors and housing associations. The BPF says there are now more than 100,000 completed BTR homes, with a further 160,000 in the pipeline. However, it says the UK still lags other countries such as the US and Australia in delivering professionally managed homes at scale and at a range of price points. To ease the pressure on the rental market and support overall housing supply, the BPF is calling on the next government to set a target of 30,000 BTR homes a year, with a stamp duty exemption for new developments of more than 100 homes to support valuations, de-risk development and create more liquidity in the market. It is also calling for the government to have a requirement for local authorities to assess the need for professionally rented homes as part of local plans. PBSA needs The manifesto says the purpose-built student accommodation sector houses 710,000 students and post-graduate researchers and is favoured by international students who are vital to the financial health of the higher education sector. It has called for the introduction of a needs assessments for student accommodation – similar to housing need evaluations – so local authorities must consider it as part of local plans, and for an exemption of CIL payments  for affordable student accommodation, in line with affordable housing, to support delivery at lower price points. A requirement for universities to plan for student accommodation as part of their future growth and funding plans should be mandatory, it says. Senior living An undersupply of purpose-built housing for older people has created pressure on the wider housing supply by restricting downsizing and increasing the burden on the social care system, the manifesto says. It estimates there are more than 12.9m over-65s in the UK and only 602,633 senior housing homes. The BPF forecasts there is £6.5bn private capital targeting the sector that could support the delivery of 50,000 homes per year. To realise this potential, it says the next government should create a new planning use class for seniors’ housing to ensure consistency and reduce uncertainty for investors. BPF policy director Ian Fletcher says: “The only way to tackle the housing emergency is to build more homes of all types, and by delivering more affordable housing, market rental homes, student accommodation and older peoples’ housing we can relieve the pressure on overall housing supply. However, as it stands, development across these sectors is restricted to 35,000 homes a year, when there is a need for at least 100,000.  “Pension funds and other sources of institutional capital are attracted to these sectors as they offer secure long-term income, but the next government must do more to give them the confidence to invest. “Currently the planning system at both a national and local level does not provide enough clarity or support for a wide range of tenure types, and there are a number of funding mechanisms government can introduce that will help de-risk schemes and support delivery when economic and market conditions are more challenging.” Image © British Property Federation