lloyds banking group commission on housing outlines programme to

28 January 2015
Co-chaired by two former housing ministers, the independent Commission sets
out a pathway to overcoming UK’s housing shortage
Requires cross party support for a long-term approach, together with
consistency in policy, and a commitment to both quality and quantity
Targeting 2 to 2.5 million new homes built by 2025
Today (28/01/2015) sees the launch of an independent report by the Lloyds Banking Group
Commission on Housing at the House of Commons, which sets out a roadmap towards the
sustained supply of good quality new homes.
The aim of the Lloyds Banking Group Commission on Housing is to generate cross-party
agreement on key policy areas which could make a significant difference in providing greater
levels of new homes.
Co-chaired by Mark Prisk MP and Nick Raynsford MP, two former Housing Ministers from
different political backgrounds, the Commission also includes a number of industry experts
from different fields who collectively generated the insight shaping the conclusions of the
Report. The research underpinning the report has been carried out by Cambridge University
and sponsored by Lloyds Banking Group.
Headline recommendations
The Report calls for a progressively rising target for national house-building which will deliver
2 million to 2.5 million homes by 2025.
To achieve this, the focus needs to be on the delivery of more high quality yet affordable
homes, with large private sector builders supported by:
A revitalised SME home-builders sector and custom/self-build sector.
A new professional rental sector backed by institutional investors, with more secure,
longer-term tenancy agreements.
A duty placed on all public sector bodies to review land holdings and assess the case
for the disposal of surplus for the purpose of new homes.
Strategic Plans introduced to provide clarity to Local Planning Authorities (LPAs) on
the number of new homes needed and the infrastructure around them at ‘first-tier’
council level
Meaningful public engagement which informs local communities of both the need and
benefits of more high quality homes.
A review of the balance between public expenditure on new homes and housing
benefits that help to pay rents.
Mark Prisk, MP, co-chair, Lloyds Banking Group Commission on Housing, said:
“The UK housing market is facing a range of interlocking problems relating to the general
shortage and quality of new homes being built. These will not be solved without a determined
and sustained programme supported by all political parties, and we intend this report to be
the spur to give this issue the priority it needs.”
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Nick Raynsford, MP, co-chair, Lloyds Banking Group Commission on Housing, said:
“The Commission was convened to identify the key policy responses necessary to generate
a higher, more sustainable level of housing production in the UK. Crucially, this report does
not revisit issues previously raised in other reports, but has focused on a number of key
areas which could make a significant difference.”
Other key recommendations in the Report are:
Planning: the National Planning Policy Framework (NPPF) should not be significantly
altered over the next decade. Government needs to ensure that all Local Authorities
have local plans in place (currently 40% of districts do not have a Plan that has
passed an examination).
Strategic Planning should be introduced to address the small geographies of districts,
to introduce better co-ordination of infrastructure delivery to match housing growth,
and to ensure that properly planned areas of housing growth recognise the natural
capacity of the area. These should be sub-regional – at ‘first tier’ council or ‘city
region level – so as not to be too remote from local public engagement and to
maintain democratic accountability for planning at a local level.
Compulsory Purchase Orders: Greater clarity is needed on the rights of local
authorities to use these to assemble large brownfield sites from smaller parcels in
multiple ownership to stimulate brownfield regeneration.
More long-term development partners: HM Treasury rules concerning ‘best value’
need to change to encourage government departments, NHS trusts, local authorities
and other public bodies to become long-term development partners. Local authority
bond guarantees should be matched to this land release until 2025.
Clear targets for Local Authorities: over the time taken with S106 agreements and
pre-commencement conditions. The difference between the best and the average can
shave 18 months off the process from starting pre-applications to opening the first
show house.
Reform of the Construction Industry Training Board: In order to improve the operation
of its levy on the industry and to improve the relevance and speed of the training it
Brandon Lewis, Housing Minister, said:
"I welcome this report’s contribution to the debate, which makes clear that all parts of the
housing industry must work together and continue to build the homes this country needs.
"It also recognises the progress we’ve made since 2010 to get the country building again,
providing more homes and security for hardworking people. This includes the £525million
Builders Finance Fund to kick-start stalled smaller sites, the billions we’ve invested in
building new affordable homes, and the radical reforms to the planning system which has put
power back into the hands of local people."
Stephen Noakes, Managing Director – Retail Customer Products, Lloyds Banking
Group, and member of the Commission, said:
“The Report acknowledges that the challenges holding back the supply of good-quality new
homes are multi-layered and as such there is no one single solution. Instead what is required
is a sustained programme of measures and a long-term commitment to a wide variety of
different types of developments.
“We are recommending a series of incremental changes which form an achievable
framework for long-term housing affordability. This is a generational challenge, and we need
to get to a sustainable level of house-building for a more prosperous Britain.”
Helping Britain Prosper
In 2014 Lloyds Banking Group made a public commitment to Help Britain Prosper*, and has
already confirmed a number of practical steps to realise this:
In October 2014 Lloyds Banking Group announced the launch of a ‘Housing Growth
Fund’ to assist smaller house-building businesses. This will be a £50 million fund to
provide SME housebuilders with equity to support residential development projects.
This is part of a call for at least 60,000 new homes above the current level of supply.
In January 2015 Lloyds Banking Group became the first lender to take part in the
Custom and Self Build (CSB) Scheme. Under CSB individuals wishing to self-build or
custom-build a home in one of the participating local authority areas will apply for a
mortgage and, once agreed, the deposit, for as little as 5% will be paid direct to the
local authority. The local authority will fund the cost of the build to completion at which
point, the mortgage will be provided by the lender, covering the build costs, which will
be fully repaid to the local authority. Once the house has been built, homeowners will
simply have a mortgage on a custom or self-built property.
2015 First Time Buyer Commitments: Lloyds Banking Group will pledge to support
first-time buyers, by committing to lend a further £10 billion in 2015 to help customers
purchase their first home. We expect the commitment to help more than 80,000 first
time buyers by the end of the year, and this will be delivered by continuing to offer the
most comprehensive proposition in the UK mortgage market.
In addition, as part of the Helping Britain Prosper Plan, Lloyds Banking Group has
committed to providing at least one in four new build mortgage completions for first
time buyers, second steppers and private rented, as a proportion of the total new
build market.
Lloyds Banking Group will continue to support key initiatives in the UK housing
market, including Help to Buy, shared ownership and shared equity, to help more
customers get on the housing ladder, and more customers move up it.
Notes to editors
Co-chaired by Mark Prisk and Nick Raynsford, two former housing ministers, Lloyds Banking Group
Commission on Housing includes several expert commissioners: Sir John Banham (Chair of the RIBA
Future Homes Commission); Prof Tony Crook (Emeritus Professor of Town and regional Planning,
University of Sheffield) Stephen Stone (CEO, Crest Nicholson), David Montague (CEO, L & Q Group),
Ben Bolgar (The Prince’s Foundation), Paul Raynes (Local Government Association) and Stephen
Noakes (Managing Director – Retail Customer Products, Lloyds Banking Group).
The Parliamentary launch of the Commission’s Report will be in Portcullis House at 1300hrs on 28
January. The launch will be hosted by the Chairman of the Housing Select Committee, Clive Betts MP,
and the co-chairmen of the Housing Commission will lead a summary of the recommendations.
*About Lloyds Banking Group's Helping Britain Prosper Plan
Lloyds Banking Group has a combined history that stretches back more than 300 years and a heritage
of making a difference within its communities that spans many decades. In March 2014, the Group
published its Helping Britain Prosper Plan, setting out seven separate and significant public
commitments to do even more to help address some of the big issues facing its customers and Britain
right now.
Lloyds Banking Group is the first bank to measure its economic and social impact in this way. They
Plan will be independently measured and monitored. To find out more about Lloyds Banking Group’s
commitment to Help Britain Prosper, please visit http://www.lloydsbankinggroup-cr.com/.
The Helping Britain Prosper Plan includes a pledge to support one in four first-time buyers and one in
four new build purchases. In 2014 around 80,000 first time buyers were helped onto the housing
ladder by Lloyds Banking Group brands, and one third of all lending on UK new-build properties is
funded by the Group.
In addition:
Over a third of people who have bought through the Help to buy scheme have done so with
Lloyds Banking Group.
Lloyds Banking Group underwrote nearly £1 billion of securities offered by Social Housing
issuers last year.
For more information
Ben Marquand
Senior Media Relations Manager
Tel: 020 7356 1838
Mob: 07881 311199
Email: [email protected]