COMMENT: Adam Challis, head of residential research at JLL, responds to the changes in the NPPF and the announcements made by prime minister Theresa May and housing, community and local government secretary Sajid Javid around them.
The consultation touched on a number of areas, and in some ways it feels a little bit like kitchen sink delivery, which is to say everything is being thrown at delivery solutions except the kitchen sink.
This is not as helpful as it might appear.
But the broad direction of travel is consistent, and that in itself is a good thing.
In particular, the prime minister’s emphasis on renting as a legitimate choice and a quality alternative is really key, and what it translates to is build-to-rent being a big part of the solution, and is now manifested in a material way through top-down government policies.
This is going to be a real boon for leading developers and housebuilders that are able to work with government effectively.
The consultations show a clear recognition that responsible capitalism has to be an inherent part of any government support. This is not unfettered money for shareholders.
If the government puts its money behind the industry, that has got to come with the industry stepping up and playing a more responsible role.
In light of Grenfell, the Presidents Club and snagging problems from major delivery programs, the industry has the perception of not doing its bit in society.
At the launch, there was repeated emphasis on the Letwin review, which will be prepared in advance of this year’s Budget, and the industry should expect the results of that review to be used as leverage in this “use it or lose it” type of thinking.
But it does mean the review will be very influential in the land market and if it does not fully understand the market delivery mechanisms it may come to some unhelpful conclusions for the industry, and could undermine everything the government is trying to do.
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