The Liberal Democrats will judge the government on what its new homes deliver

Housing is one of the government’s top priorities. It has promised a step change in supply, with plans to build 1.5 million homes in five years through planning reform, new towns, and a “council house revolution”. With 72 MPs now in parliament, the Liberal Democrats will want to shape this agenda. So what are the party’s priorities? An IfG fringe event, held in partnership with Thakeham, at the Liberal Democrat party conference in Brighton offered some clues.

The Lib Dems will push the government on sustainability, but the government will need to weigh up what it can commit to

Liberal Democrat MPs and delegates agreed that making new homes sustainable should be a top priority. Some noted that homes being built now are not carbon neutral, and argued the government should be introducing net zero homes standards more quickly than its current trajectory.

Others asked whether the government can bring in new regulations without risking a hit to housing supply: our research suggests that it depends on how new regulations are introduced. Regulations that are imposed at the last minute, have no clear route for developers to ensure their projects comply, and do not align well with existing processes and policy requirements create costs and delays, so are more likely to hinder than help building.

In the coming months, the government has promised to unveil a long-term housing strategy. We recommend that this sets clear objectives, including a clear plan for how the government will reconcile future net zero homes standards – which many in its own party welcome, as well as the Liberal Democrats – with its housebuilding commitments.

Liberal Democrats will be watching progress on affordability

Improving housing affordability – both for homeowners and renters – featured prominently in the conversation. One local councillor claimed that properties come in at 13 times the average salary in their area.

Some delegates expressed concerns about ‘land banking’ – the idea that developers hold onto land with planning permission for longer than needed, so that the value of properties they sell on that land becomes higher. But our report outlines why two government-commissioned independent investigations into ‘land banking’ question this assertion. And panellist Anna Clarke, of The Housing Forum, noted that there are often good reasons for delays, like developers being required to wait for new infrastructure like road junctions and schools before they can start construction on homes.

The panel noted that the relationship between housing supply and affordability is complex. Increasing supply is critical for improving long-term affordability, but it is far from a quick fix, nor the most direct route to alleviating high costs at the bottom end of the housing market, while other major levers affecting prices – like interest rates – are out of the government’s control. But the panellists agreed with delegates’ concerns that more could be done to increase how much affordable housing private developers deliver, particularly by reducing the scope for developers to use viability assessments to avoid delivering affordable homes, and also called for more investment in social housebuilding.  

The Liberal Democrats would clearly like to see the government make progress on affordability. But the government is yet to put a number on the “biggest boost to social and affordable housing in a generation” it has promised. Perhaps pushing for more social homes could become where the Liberal Democrats focus their voices in parliament.

Lib Dem MPs want the government to prove that local areas will share in the benefits of development

Delegates were clear that local areas should see benefits from new development to turn NIMBY opposition into support – possibly even enthusiasm. They were concerned about how the government can make sure development comes with the infrastructure and amenities residents need and want MPs to hold the government to account on this.

Both MPs on our panel – Max Wilkinson (Cheltenham) and Lee Dillon (Newbury) – called for better infrastructure provision with new developments, and better engagement between developers and local communities to improve local support. Showing that this is possible, Tristan Robinson of Thakeham – the event’s sponsor – noted that their 619-home development in Pease Pottage received three times more letters of support than opposition, which he attributed to their extensive consultation with local residents.

This leaves a tall order for the government

The government faces major challenges to delivering its target 1.5 million homes in five years. The panel set out a litany of intimidating limits on building rates – a downturn in the market, construction skills shortages, and lack of capacity in the planning system. 
But it was clear from this event that the government will face pressure not just to deliver the housing numbers it has promised. The Liberal Democrats want to see affordable, sustainable, and locally beneficial new development, and will no doubt push for the government to deliver on this.