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The housing minister has set out “seven immediate priorities” for Homes England to help the government hit its target of building 1.5 million over the next five years.
Matthew Pennycook (pictured) wrote to Homes England chair Peter Freeman earlier this week and said that “the agency will play a vital role in delivering this government’s housing agenda”.
The new government’s five-year target is 50% higher than the number of homes that were built in the previous five years.
The last time homes were built on the scale that Labour proposes was in 1969/70.
The intervention by the housing minister comes after Homes England’s 2023/24 annual report shows it achieved 32,300 home completions, down 4.2% from a year ago.
It initiated 35,600 home starts, down 4.3% from last year, however, it unlocked the delivery of 26,200 previously delayed homes, which more than doubled the figure 12 months ago.
The housing minister reiterated that the government will publish its updated National Planning Policy Framework by the end of the year, which will outline its long-term housing policy.
But in the letter, dated 30 September, Pennycook wrote to Freeman and said that in the meantime, “I have seven immediate priorities that I would like you to ensure the agency focuses on”.
These are:
- “I expect the agency to do everything in its power to accelerate development and increase delivery in 2024/25”
Pennycook added: “This will require an increase in the agency’s offer and role as master developer; better leveraging of funding programmes; and a greater willingness to utilise the existing powers available to it, including the rarely used compulsory purchase power.”
- “I would like you to continue to provide appropriate support to the New Homes Accelerator so that we can speed up delivery on large sites that are stalled or building out too slowly.
The New Homes Accelerator is a programme linking government, Homes England, the Greater London Authority, local authorities, and developers “to unblock” homes that have become delayed.
The government has identified around 200 sites, with outline or detailed, planning permission where work on site has been delayed, with the potential to deliver up to 300,000 homes.
The minister added: “This activity will extend to new sites where Homes England is not currently involved, but where Homes England support has been identified as the best lever to accelerate delivery.”
- “I expect the agency to continue to support the department [of housing’s] work on new towns and other major schemes by providing expertise and advice to the New Towns Taskforce where required and more actively leading place-based delivery”
The New Towns Taskforce is an independent 10-member panel established last month and chaired by Sir Michael Lyons.
Its job is to recommend the “next generation” of new towns that will each provide at least 10,000 new homes.
These areas should collectively deliver hundreds of thousands of new homes by 2050.
It will submit a key report to housing secretary Angela Rayner next summer to identify where these towns will be based.
- “I would like you to take steps to ensure that the agency is maximising the number of social rent homes.”
- “I expect the agency to support the reform and diversification of the housing market.”
The letter said this should include efforts to support such areas as small builders, build-to-rent, the greater adoption of mixed tenure sites and custom-built homes.
- The body “should continue to focus on achieving best value for money for the taxpayer and ensure that the agency drives efficiencies and prioritises resources”.
- The unit “should ensure that the agency provides robust and timely input into the Budget and spending review processes”.
Chancellor Rachel Reeves’ 30 October Budget will be the first Labour fiscal statement in 14 years and comes after the new government says it has been left a £22bn black hole in the country’s finances this year by the previous administration.
The spending review, which sets spending plans for government departments for a minimum of three years will be completed next spring.
Finally, Pennycook told Freeman that Homes England’s own “strategic plan will need to be revised to reflect our ambitions for housing and the role of Homes England in delivering our new long-term housing strategy”.