Savills has analysed how the National Policy Planning Framework objectives play out in respect of the market. Some key facts emerge:

• Housing supply needs to double to meet need.

• This would be a timely boost to the economy, adding 1% to GDP.

• There is a wide divergence in market strength across the country, but many LAs are delivering much less than could be absorbed into the local market.

• Housing market areas do not follow administrative boundaries, which is why the Duty to Co-operate on housing requirements is so important as an adequate replacement to regional planning.

• Likewise, markets do not follow the old regional boundaries. The map below shows areas where house prices behave in similar ways.

FirstBuy and Newbuy are proving that market intervention can unlock the mortgage constraint on delivery.

• Planning policy needs to recognise the role of Build to Rent in unlocking further market capacity to provide high quality new homes. Central Government should recognise that investment in affordable housing can help to unlock costly regeneration sites where market capacity alone is insufficient to bring forward the site.

• Graph 3 shows post-downturn housing delivery as a proportion of existing housing stock, for all LAs in the Greater South East compared with affordability (house price to earnings). This is a simple measure of housing market strength and purchaser reliance on mortgage finance. The analysis shows wide variations in housing supply among markets with comparable strength.

This indicates housing delivery could be higher in many markets, via an increase in the supply of land with a deliverable planning consent.

Taken from
Spotlight: National Planning Policy Framework - One Year On