Sustainable, affordable developments: what gives?

Manchester Council Leader Bev Craig asked attendees at the Built Environment Greater Manchester Development Conference last month: “Would you rather build five perfectly sustainable houses or 15 nearly perfect ones?”

Interestingly, 97% of the audience voted for ‘nearly perfect’ option, suggesting that whilst sustainability is a key driver, addressing GM’s housing shortage and solving the homelessness crisis is arguably more critical right now.

Later that week, Chancellor Kwasi Kwarteng announced his ‘mini’ budget with his anticipated Growth Plan which has since set the markets into turmoil. It involved changes to stamp duty and identifying 40 investment zones (including Greater Manchester) that will benefit from streamlined planning processes and removal of business rates. This will be further supported with yet to be confirmed initiatives to increase house building, including reform of the planning system, and promoting the sale of land for housing.

Whilst this is all great on paper, the elephant in the room continues to be the current viability gap affecting many affordable housing schemes. Future developments are quite literally ‘hanging in the balance’ which begs the question – ‘what gives?’

Many Councils and Registered Providers are having to grapple with competing priorities including NDSS, new Part L and Future Homes, Biodiversity and design aesthetics. And at the same time planning policy often seems to slow down the process or create blockages, un-necessarily constraining what can be delivered. This is all happening at a time when material price increases and labour shortages are affecting viability; inflation is at an all-time high and grant levels are remaining static. of ‘So how are we as a region going to deliver sustainable, affordable housing with these hurdles?’

Until the Government steps into this space and announces the detail of planning reform and makes more grant available to deliver affordable homes, what is clear is that we are all going to have to be innovative in our approaches.

We are working innovatively as part of a wider team with Salford City Council to deliver a series of affordable housing schemes. Homelessness has been increasing in the city and the Council is currently housing 314 people who have slept rough or at risk of rough sleeping. The scheme looks to deliver 24 move on apartments funded through the Rough Sleepers accommodation Programme, alongside a number of affordable homes. The Council has worked closely with planning colleagues discussing options for maximizing the site within planning policy guidelines. They agreed to reduce space standards for single person accommodation and have taken a pragmatic approach to the replacement of existing trees and biodiversity.

The first scheme for 8 homes secured planning permission last week and further 16 move on apartments and 19 affordable homes on two other sites is due to be heard at committee in November. These fantastic new homes are due to complete at the end of 2023.

With recession looming, the property sector must play its part to ensure that viable affordable housing developments come to fruition; equally, we must consider the role of the Government in making more funding available to make more affordable schemes a reality.

We must overcome these macroeconomic hurdles through collaboration – paving the way for sustainable communities that not only survive – but thrive.

Top takeaways

1. Nearly net zero housing development is better than no new housing development
2. Planning reform is crucial to balance the requirements of public sector development wishlists
3. Further review of grant levels is needed to address the viability gap