{"id":80140,"date":"2017-03-28T15:13:05","date_gmt":"2017-03-28T15:13:05","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=71a83b993f7c7c08eff1eb1dd10ae2ea"},"modified":"2017-03-28T15:13:05","modified_gmt":"2017-03-28T15:13:05","slug":"speech-helping-builders-to-get-building","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=80140","title":{"rendered":"Speech: Helping builders to get building"},"content":{"rendered":"
\n

Standing here looking at all these red benches, it feels a bit like being in the House of Lords\u2026<\/p>\n

Though I suspect the audience is a bit livelier!<\/p>\n

I hope it is, let\u2019s see what happens in the Q&A!<\/p>\n

It\u2019s great to be here at the beautiful home of the Royal Society of Medicine, perched at the end of this historic thoroughfare.<\/p>\n

Virginia Woolf \u2013 not a name you often hear at housing conferences, but that\u2019s what you should come to expect from a former Culture Secretary – Virginia Woolf was a big fan of this part of London, particularly its august, inspiring, buildings.<\/p>\n

She found them oddly reassuring, in fact.<\/p>\n

And she once wrote that: \u201cwhen the world seems tumbling to ruin, and civilisation rocks on its foundations, one has only to go to Wimpole Street.\u201d<\/p>\n

So I\u2019m hoping that Stewart\u2019s choice of venue today isn\u2019t a reflection of what he thinks about the housing industry\u2019s current mood!<\/p>\n

Some of the publicity for this conference described me as having \u201cstrong views about housing\u201d.<\/p>\n

I have to say that\u2019s something of an understatement!<\/p>\n

Since I was appointed to this job last summer, I\u2019ve been very clear that housing is my number one priority.<\/p>\n

Housing is one of those rare government issues that touches on the lives of literally every single one of us.<\/p>\n

Maybe you\u2019re stuck renting because you can\u2019t afford to buy a place of your own.<\/p>\n

Maybe you\u2019re trapped in a leasehold property with unfair, onerous terms.<\/p>\n

Maybe you\u2019re spending too much on mortgage payments, so you can\u2019t afford to do anything else.<\/p>\n

Maybe you have no problems with your own home, but are worried about a development that\u2019s planned in your area.<\/p>\n

Or, like most of the people here today, maybe your own job relies on a steady, strong, sustainable house-building sector.<\/p>\n

Whatever your story, whatever your background, housing matters to you.<\/p>\n

And there is no doubt in my mind that the housing market is broken.<\/p>\n

I know not all of you agree with that view.<\/p>\n

But as far as I\u2019m concerned, any market that stops people accessing a basic human need cannot be said to be working.<\/p>\n

If the price of water was so high that people could not afford to drink, nobody would argue that the system was functioning as it should.<\/p>\n

Safe, secure, affordable housing is just as important to the people of this country.<\/p>\n

The lack of it is hurting British people, it is harming our economy, and it is the biggest barrier to social mobility in our country today.<\/p>\n

And the cause of the problem is very simple: not enough houses.<\/p>\n

For decades, we haven\u2019t built enough new homes in this country.<\/p>\n

It\u2019s not the fault of one government or one Prime Minister.<\/p>\n

House building peaked the year before I was born, during Harold Wilson\u2019s first stint in No 10.<\/p>\n

The line on the \u201ccompletions\u201d graph has been steadily heading in the wrong direction ever since.<\/p>\n

There\u2019s been a modest improvement in the past few years, a small upward tick after decades of failure.<\/p>\n

But there\u2019s still a long, long way to go before supply meets demand.<\/p>\n

Now, I can\u2019t force you to build more homes.<\/p>\n

But what I can do is make it as easy as possible for you to build more.<\/p>\n

I can remove the barriers, I can unblock the system, I can speed things along.<\/p>\n

In short, I can take away the reasons you may have not to build.<\/p>\n

And that\u2019s what the Housing White Paper<\/a> is all about.<\/p>\n

It\u2019s good news for anyone in this country who wants to get more of the right homes built in the right places \u2013 and that includes everyone involved in the construction industry.<\/p>\n

Because we\u2019ve been listening \u2013 myself, my Housing Minister Gavin Barwell<\/a>, my officials.<\/p>\n

We understand what\u2019s holding you back.<\/p>\n

We appreciate that the system hasn\u2019t always served you well.<\/p>\n

And we\u2019re taking real action to fix it.<\/p>\n

So we\u2019re reforming the planning system, making sure it really does objectively assess the need for new homes in different areas.<\/p>\n

We\u2019re also going to encourage a higher density of building.<\/p>\n

And we\u2019ve shown that we\u2019re not afraid to take tough planning decisions when exceptional circumstances require it.<\/p>\n

At the same time we\u2019re simplifying the plan-making process, making it easier for local people to understand and then to engage with.<\/p>\n

It might not sound like much, but we\u2019ve found that people are much more likely to support development in their area if they\u2019ve had a genuine say in the proposals.<\/p>\n

And that means fewer objections, fewer delays and more permissions granted.<\/p>\n

We\u2019re also speeding up the process of securing those permissions, giving planning authorities access to extra resources so they can improve their services.<\/p>\n

We\u2019ve created a new way of securing planning permission on suitable brownfield sites.<\/p>\n

And we\u2019re going to make local authorities publish registers of those sites so everyone knows what\u2019s available, from the biggest developers to independent self-builders.<\/p>\n

We\u2019ll be doing more to ensure sites are connected to utilities in a timely manner, so you can get on with building.<\/p>\n

And of course, at the Autumn Statement<\/a>, we launched the \u00a32.3 billion competitive Housing Infrastructure Fund<\/a>, a fund that was widely welcomed by the industry.<\/p>\n

But this isn\u2019t just about helping the household-name house-builders.<\/p>\n

SMEs have long shown that they can be flexible, innovative and responsive to need.<\/p>\n

Exactly the qualities we need in developers, all developers, right now.<\/p>\n

But too many of them have struggled to bounce back from the effects of the financial crisis.<\/p>\n

That\u2019s why I want to see a bigger role for smaller companies.<\/p>\n

So we\u2019re strengthening the National Planning Policy Framework to bring more small sites into the planning system.<\/p>\n

We\u2019ve created the \u00a33 billion Home Building Fund<\/a> to offer financial support \u2013 90 per cent of applications so far are from SMEs.<\/p>\n

And we\u2019re creating more opportunities for off-site, modular construction, so that growing British companies can become world leaders in this exciting and effective area.<\/p>\n

Finally, for the benefit of all builders, we\u2019re streamlining the system for managing great crested newts.<\/p>\n

I\u2019ve nothing against newts.<\/p>\n

I\u2019m not a newt-ist!<\/p>\n

But when we desperately need thousands of new homes, developers shouldn\u2019t have to jump through endless little amphibian hoops!<\/p>\n

The new system will balance continued protection with common sense, so build-out isn\u2019t subject to endless delays.<\/p>\n

That\u2019s just scratching the surface of the White Paper.<\/p>\n

You\u2019ve read it, you know the details.<\/p>\n

And you\u2019ve seen that it represents an unprecedented package of measures aimed at making the system work for you.<\/p>\n

Concrete steps that will remove unnecessary barriers and let you get on with what you do best \u2013 building houses.<\/p>\n

But this isn\u2019t a one-way street.<\/p>\n

The White Paper is about partnership.<\/p>\n

About government, local authorities, communities and builders working together to fix our housing shortage.<\/p>\n

As part of that we\u2019re doing a lot to help your industry.<\/p>\n

And, in return, we do expect to see action.<\/p>\n

Obviously we want to see more homes built. But it goes further than that.<\/p>\n

Look at quality and design.<\/p>\n

Housing is one of the few areas in life where newness is not always considered a virtue.<\/p>\n

Where many people, if they are given the choice, would rather go for the older, tried and tested option.<\/p>\n

It\u2019s fair to say that new builds don\u2019t always have the best reputation for quality.<\/p>\n

Just last month we heard about one developer paying \u00a37 million to homeowners whose houses were littered with problems and even unfinished.<\/p>\n

This isn\u2019t a new issue.<\/p>\n

More than a century ago, Jerome K Jerome wrote that: \u201cI want a house that has got over all its troubles; I don\u2019t want to spend the rest of my life bringing up a young and inexperienced home.\u201d<\/p>\n

But it\u2019s a problem for which, in 2017, there\u2019s really no excuse.<\/p>\n

And if it\u2019s not solved, it risks undermining public confidence in new-build homes \u2013 something that would be bad for the sector and really bad for the country as a whole.<\/p>\n

So I want to see every new home built to the highest possible standards.<\/p>\n

And not just technically, but aesthetically too.<\/p>\n

Obviously the attractiveness of a building is a subjective matter.<\/p>\n

Views of what looks \u201cgood\u201d of course may vary from person to person.<\/p>\n

But nobody has any attachment to the rows of pokey, identikit boxes that plague too many developments.<\/p>\n

I\u2019ve seen some brilliant examples of attractive, sympathetic, contemporary homes.<\/p>\n

But I\u2019ve also seen some that make me wonder how they ever escaped the designer\u2019s sketchpad.<\/p>\n

A pleasing appearance isn\u2019t just a \u201cnice to have\u201d.<\/p>\n

It\u2019s also in your commercial interest.<\/p>\n

When people come to me objecting to developments in Bromsgrove, for example, one of the main reasons they cite is unsympathetic design.<\/p>\n

They know we need more homes, but they also know they\u2019re going to have to look out of their window at them every day for the next 30 years.<\/p>\n

Put more thought into design and you will take that objection away.<\/p>\n

Get local people on board and you can secure permission more quickly and get building more quickly.<\/p>\n

I\u2019m not going to stand here and tell you what good architecture looks like.<\/p>\n

That\u2019s not my job.<\/p>\n

I\u2019m not saying every development should mirror Poundbury.<\/p>\n

Nor am I saying every new home should be fit for inclusion in the next series of Grand Designs.<\/p>\n

All I\u2019m saying is that engaging with the local community and giving them a greater influence over design will reap rewards for everyone.<\/p>\n

The Housing White Paper was also very clear that we want to see a greater investment in the build-to-rent sector.<\/p>\n

I know some of you have been questioning whether that means we\u2019re shifting our focus from ownership to rental.<\/p>\n

I can tell you now, that\u2019s not the case.<\/p>\n

The property-owning democracy remains at the heart of our philosophy, and we remain absolutely committed to getting people onto the housing ladder.<\/p>\n

What the White Paper acknowledges is that millions of people are not in a position to buy.<\/p>\n

Some may prefer to rent.<\/p>\n

The private rented sector has grown enormously in recent years, and people living in rented properties deserve our support just as much as owner-occupiers.<\/p>\n

That\u2019s why we\u2019ll be giving build-to-rent homes greater recognition within the planning system, making it easier to include private rental homes as part of the affordable housing component.<\/p>\n

It\u2019s an area that some developers have already recognised the potential of \u2013 Telford Homes and Crest Nicholson being two obvious examples.<\/p>\n

It\u2019s about meeting the need for more rental homes while also protecting your commercial interests.<\/p>\n

Once again that\u2019s a win-win, benefiting both the construction sector and the people of this country.<\/p>\n

If we\u2019re going to build a country that works for everyone we need a housing market that works for everyone \u2013 regardless of whether you rent or own your own home.<\/p>\n

And that also means making the market that little bit fairer.<\/p>\n

Now, here at the Royal Society of Medicine we\u2019re just around the corner from some of London\u2019s most famous shopping streets.<\/p>\n

And if you pop over the road to John Lewis and buy some new crockery, for example, you\u2019ll get a receipt and know that you\u2019ve paid for it and it belongs to you.<\/p>\n

End of story.<\/p>\n

You won\u2019t expect the company that made it to send you an annual invoice for the next 100 years.<\/p>\n

If you walk into Selfridges and pick out a new dress, and you\u2019ll be allowed to take it in a little around the waist without seeking and paying for prior permission from the tailor.<\/p>\n

Or maybe you\u2019ll head over to Hamleys, buy some Lego for the kids.<\/p>\n

When you get home and hand it to them, Lego won\u2019t be allowed to charge you an enormous \u201cchange of ownership\u201d fee.<\/p>\n

Yet if you\u2019re about to complete the process of buying a new-build house, these are exactly the kind of problems you might find yourself facing.<\/p>\n

The simple truth is that too many new houses are being built and sold not on traditional freehold terms, but as leaseholds.<\/p>\n

Now, leasehold has, of course, been a common part of life in this country for many years.<\/p>\n

I know the first flat I bought was leasehold.<\/p>\n

It can serve a valuable purpose for flats and mansion blocks and so on.<\/p>\n

And nobody would dispute the need to pay a fair amount for the upkeep of shared spaces and shared facilities.<\/p>\n

It\u2019s part of the responsibility of being a home owner.<\/p>\n

But I\u2019m hearing about more and more cases where developers are selling newly-built houses on a leasehold basis for no obvious reason.<\/p>\n

And I\u2019m hearing about more and more cases where ground rent is being used in an entirely unjustifiable and unfair way.<\/p>\n

When this was debated in Parliament<\/a> around Christmas, we heard all kinds of horror stories.<\/p>\n

One MP talked about a constituent stuck in a house with ground rent that doubles every 10 years.<\/p>\n

Starting at \u00a3175 in 2009, by 2060 it will be more than \u00a311,000 a year.<\/p>\n

Others shared stories of leaseholders being charged nearly \u00a33,000 by the landlord for the right to extend their home.<\/p>\n

Of homeowners being told they have first refusal to buy out their lease for 30 times the ground rent, only to discover the freehold has been sold to a third party who won\u2019t give it up for less than 100 times the ground rent.<\/p>\n

I don\u2019t like legislating to fix problems like this.<\/p>\n

I know that most builders and developers are fair, honest, sensible people.<\/p>\n

Most of you don\u2019t use leasehold in this manner.<\/p>\n

Of those who do, several have started making positive noises about the future.<\/p>\n

And the last thing I want to do is tie the industry up in more red tape at a time when supply is already so far short of demand.<\/p>\n

But as a government committed to building a fairer society, I don\u2019t see how we can look the other way while these practically feudal practices persist.<\/p>\n

So I will look to ensure Help to Buy<\/a> Equity Loans are only used to support new build houses on acceptable terms.<\/p>\n

This will send a serious message to the building industry: if you want the government to help you build and sell homes, you have to sell them on fair terms.<\/p>\n

And that\u2019s what all this is ultimately about \u2013 helping people find homes.<\/p>\n

It\u2019s all too easy to get hung up on graphs and charts and numbers, to think about what you do solely in terms of bricks and mortar and pounds and pence.<\/p>\n

Yes, you all run businesses.<\/p>\n

You employ people, you create something, you sell it for a profit.<\/p>\n

But what you\u2019re creating, whether you\u2019re a developer or part of the supply chain, isn\u2019t just another product.<\/p>\n

It\u2019s something that\u2019s very special.<\/p>\n

Our home is fundamental to who we are.<\/p>\n

It forms the backdrop to our lives.<\/p>\n

It\u2019s where we grow up, it\u2019s where we settle down, it\u2019s where we raise a family, it\u2019s where we retire to.<\/p>\n

Our homes shape our experiences and, in time, grow to reflect us.<\/p>\n

A house is four walls and a roof, but a home is so much more than that.<\/p>\n

And so let\u2019s work together to give everyone in this country the safe, secure, affordable home they need, they want and they deserve.<\/p>\n

Thank you very much.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Sajid Javid talks to home builders about the Housing White Paper, the importance of good design, and the problem of unfair leasehold terms.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80140"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=80140"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80140\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=80140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=80140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=80140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}