New priorities for the government's multi-billion pound housing budget, along with the Housing and Planning Bill, are likely to reduce the planning system's role in providing affordable homes to rent, experts have said.
In last week's spending review, chancellor George Osborne reaffirmed the government's overriding objective of increasing homeownership. In his statement to Parliament, he said the housing budget would be doubled to more than £2 billion a year. "Above all, we choose to build the homes that people can buy," Osborne said.
A five-point plan for housing in the spending review is intended to deliver 400,000 affordable housing starts by 2020/21, with funding pumped into low-cost homeownership products rather than affordable and social rented housing. "Affordable means not just affordable to rent, but affordable to buy," Osborne told MPs.
Of those housing starts, the spending review said, 200,000 will be the Starter Homes pledged in the Tories' general election manifesto, available at a 20 per cent discount to the under-40s, with a £2.3 billion fund to "support the delivery of up to 60,000 of these, in addition to those delivered through reform of the planning system". Osborne also pledged 135,000 shared ownership houses and 10,000 more rented homes that will let tenants save for a deposit.
