Analysis: Affordable homes at risk as developers dessert cash-strapped councils

Analysis conducted to accompany a new report from CLES has found that five of the ten councils most impacted by austerity have built no affordable homes supported by contributions from private developers since 2010.

Across all ten areas, just 44 affordable homes have been built since 2010 using developer contributions. In contrast, councils such as Dartford, Carlisle, Cheshire East, Cheshire West and Chester, and Cornwall have all reported using developer contributions to build over 350 affordable homes during the same timeframe.

The report, Powering up Planning, focusses on the work being done by planning authorities to challenge developers to provide more in return for the profits generated by building in our towns and cities.Using case studies in Salford, Islington, Preston and Scotland, the report draws on insights from planners who are overcoming multiple barriers – including a lack of funding – to push developers to work harder for their place.

Commenting on the report, Dr Sarah Longlands, Chief Executive of CLES, said:

“Planners have a great responsibility to be the stewards of place – working closely with developers and communities to secure the best outcomes in terms of affordability, net zero and local economic benefits. But, as our analysis shows, in order to deliver on that responsibility, they need to be well funded. A return to austerity in next month’s budget which denies local authorities the money they need to employ good planners will not only mean that those working in planning services lack the capacity to secure good outcomes for their communities, it will also undermine the government’s own assertion that the market will help deliver the affordable homes we so desperately need.

“Our report shows that, despite the chaos of recent years, planners in different contexts have managed to deliver development in their community whilst at the same time securing wider benefits in terms of employment, skills and affordable workspace for local enterprise. This is the kind of creative thinking that future planning reform and public sector funding plans should be aiming to unleash longer term. Planners are not the enemy of growth, they know and understand their local economic context and can ensure that growth delivers effectively for our communities, but to do that we must give them the respect and support that they deserve.“

Councillor Santiago Bell-Bradford, Executive Member for Inclusive Economy, Culture and Jobs at Islington Council, added:

“Careful use of planning legislation plays an absolutely crucial role in building and shaping communities that work for local people. In Islington, utilising planning legislation in a thoughtful and strategic way is helping us create a more equal borough and an inclusive economy – for example by creating affordable workspaces for talented people to work and grow new businesses. We also secure jobs and apprenticeships for local people with larger companies – not just in the construction phase, but also in the operational phase in industries such as digital/tech and life sciences.

“This report shines a light on the hidden importance of planning across the UK. It’s clear that, with additional funding and even more progressive planning legislation in place, local authorities will be better placed to utilise their planning powers and influence to maximise the development of affordable housing and workspaces, to enhance and protect town centres, support local businesses, and deliver local jobs and other community benefits.” 

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