1. RICS Housing Commission 2013
“More good homes and a better UK”
James Pargeter \ 17 October 2013
@jamespargeter

2. RICS Housing Commission 2013
“I very much welcome the analysis of the recently published RICS Housing Commission. You are absolutely right to stress the need for a longer term vision, which reaches across the tenures.”
Mark Prisk MP – speaking at RICS Residential conference, 16 July 2013
Available from RICS website: Report launched: 24 June 2013

3. RICS Housing Commission 2013
Background & Members
Commission Chair & RICS President
Michael Newey – Chief Executive, Broadland Housing Association
Commission Members
Mark Clare – Group Chief Executive, Barratt Developments plc
Richard Donnell – Director of Research, Hometrack
Nick Jopling – Executive Director, Grainger plc
Prof. Duncan Maclennan CBE – University of St Andrews
James Pargeter – Partner, Deloitte Real Estate
Rosalind Rowe – Tax Partner, PWC
Paul Tennant – President, CIH and Chief Executive, Orbit Housing Group
Jeremy Wood – Chief Executive, Dudley Building Society

4. RICS Housing Commission 2013
Background & Members
Evidence received (in person & written)
45 individuals and organisations, representing:
Professional & trade bodies
Academia
Developers
Housing Associations
Homes and Communities Agency
Local Authorities
Consultants
Funders & investors
Observers
Various – Department for Communities and Local Government
Stuart Macdonald – Editor, Inside Housing

5. RICS Housing Commission 2013
The problem…

6. RICS Housing Commission 2013
National Challenges
Unaffordability
Under supply
Restricted funding
Growing fuel poverty
Economic implications

7. RICS Housing Commission 2013
Our approach
Informed & balanced by evidence
Public interest, not RICS member interest
Positive suggestions, not complaints

8. RICS Housing Commission 2013
Recognition
Successive governments have tried to help housing markets
Some current initiatives are:
* Potential for unforeseen consequences
* Positive in the long term
* Positive in the short / medium term
* Affordable Rent
* Help to Buy
* Funding for Lending
* Housing Loan Guarantees
* National Planning Policy Framework
Supportive of the Montague Review
* How does funding work?
* Emergence of new wave of Private Rented Sector (PRS) housing

9. RICS Housing Commission 2013
The Report
39 recommendations
All tenures considered
Land supply
Promoting home ownership
Funding affordable homes
Sustainability & fuel povery
Good Homes for All

10. Key conclusions Land Supply
Double the public sector land target
From 100,000 new home plots to 200,000 by 2015
250,000 in next Parliament
Default valuation basis
For residential use
with provision for 33% subsidised housing

11. Key conclusions Advance with care! Foreseen consequences
Assessing impact of welfare changes
Foreseen consequences
Respond to unforeseen consequences
Under-occupation ‘relief’
‘Travel to work’ areas
Rural areas
Shortage of alternatives
Regulation of Registered Providers
Effective, but light-touch
Outcome-focussed
One size will not fit all

12. Key conclusions Promotion of home ownership Giving choice to tenants
A portable home ownership discount for tenants
Giving choice to tenants
Preserving the rented stock
Measures for the elderly
Deferred Loan for energy efficiency
SDLT exemption for over-65s downsizing

13. Key conclusions Funding new affordable homes
New ‘higher’ Council Tax bandings
To reflect values and regional differences
Ring-fenced for new affordable housing
Local Authority Finances
Prudential borrowing
To finance new homes
Certainty on rents and welfare
Creatin g a stable environ ment for investm ent
“Subsidised housing always requires subsidy”

14. Key conclusions Private rented sector (PRS) Longer-term lets
Tenancy agreements
Longer-term lets
Not reducing landlord’s rights
Planning / s106 condition
Rental ‘covenant’
New homes rented for set period

15. Key conclusions Addressing fuel poverty Incentives aligned
Social rents that reflect energy efficiency
Incentives aligned
Sharing the benefit and cost
VAT / Stamp Duty / Green Deal
Review options
Making fuel efficiency work financially

16. Cultural Change
Home purchaser preferences
Source: DRE Research, 2010

17. Final thoughts
Housing market & priorities…

18. Final thoughts
Housing market & priorities…

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