Raising the Level of Private Housing Construction

Chapter 10 returns to the question of increasing private housing construction. In addition to the restrictions on construction arising from land use planning policies, other constraints arise from the behavioural responses and incentives structures facing local authorities, builders and landowners. Output is, therefore, influenced by the structure of the housebuilding industry, notably the business model of larger speculative builders; the skills base and productivity; and the extent to which demand is there to maintain increased output levels. The chapter then discusses possible models for speeding up development, including off-plan sales by private developers; greater diversity of housing types and tenures; and the increasing incentives to housing associations to develop market housing. In addition, the chapter considers attempts to limit the negative impacts of planning controls through permitted development and planning in principle as well as the core role of planning obligations in providing affordable housing and local infrastructure.