Evolution of Political Landscape and Residential Construction Over the Past Fifty Years
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In the United Kingdom, the issue of inadequate housing delivery has persisted for over five decades, with the goal of half a million homes per annum never being achieved. This crisis, according to analyst David Hall, associate director at Boyer (part of the Leaders Roman group), can be attributed to a combination of problematic urban renewal strategies, political decisions, deregulation, and economic volatility.
The 1960s saw a focus on high-rise housing to address urban density, but these developments led to social isolation, maintenance issues, and structural failures, creating new social problems instead of solving housing shortages effectively. The 1980 Housing Act introduced the Right to Buy scheme, which, while promoting individual homeownership, drastically reduced public housing stock without adequate replacement. This resulted in long-term social housing shortages.
From the late 1980s onward, rent regulation was largely dismantled, shifting the balance of power toward landlords. This led to rising rents, insecurity, and a larger role of housing as investment rather than homes. The private rented sector's affordability and stability worsened, contributing to the housing crisis. Economic factors such as interest rate hikes and recessions also caused housing market crashes and price volatility, impacting affordability and delivery. House prices have risen substantially since the 1970s, increasingly outpacing wages, making home ownership harder for many.
Government policies have shifted the housing system from one based on public provision towards market dominance, intensifying affordability and supply challenges. Post-war to 1960s governments focused on rebuilding and urban renewal, with council housing expansion and new planning regulations setting the technical and planning framework for housing. Conservative governments from 1979 implemented the Right to Buy policy, which decimated social housing stock, contributing to growing shortages and inequality in access to affordable homes. Post-1980s governments have allowed or promoted market-driven housing provision, deregulating rents and limiting social housebuilding, which increased reliance on the private rented sector without sufficient protections for tenants.
Recent policy discussions have called for renewed rent regulation and government intervention to rebuild social housing stock and rebalance power in the rental market. The regional approach has proven to be the most effective way of delivering the requisite number of homes. To expedite delivery, a collaborative approach is necessary, although it may be unpalatable.
The non-interventionist approach to planning, including the promotion of greater freedom of permitted development rights, has been a common factor over the last 55 years. This approach, which has met with approval from the traditionally more interventionalist Labour party, has been implemented since the Thatcher government sought to relax planning controls. Planning for housebuilding in the 1980s was set out in three circulars: Circulars 9/80, 22/80, and 15/84. These circulars aimed to "free up" the planning system and introduce the imperative of a continuous and adequate supply of land for housebuilding.
Planning Policy Statement 3, introduced in 2007, required local authorities to identify deliverable housing sites for the next ten years. These sites were defined as those already available, which offered a suitable development location, contributed to the creation of sustainable mixed communities, and had reasonable prospects of development within five years. The administrative requirements to deliver housing have become increasingly complex, with the Encyclopaedia of Planning Law and Practice now running at nine volumes compared to three when the speaker started in planning.
Despite the varying numbers of homes built across the years, the need for housing has prevailed year on year. Successive governments have been long on rhetoric and short on action, leading to a blame game between politicians and housebuilders. The draft white paper from 1965-70 suggested that the government, building societies, and builders should discuss together and agree on the need for forward planning and continuous collaboration to ensure a steadily rising house-building program.
In conclusion, the housing crisis in the UK is a complex issue that requires a collaborative and comprehensive approach. The past five decades have shown that a non-interventionist approach has not been the answer, and a renewed focus on government intervention, rent regulation, and social housing provision is necessary to address the ongoing housing shortage and affordability issues.
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