Homes

More green homes: building houses and improving the environment

The UK has a housing crisis. The Conservative Party’s manifesto for the 2015 General Election pledged to build one million homes over the course of the parliament, or 200,000 new houses a year. But many believe this is insufficient. For instance, an independent report by KPMG found that, owing to demographic change, 250,000 new homes a year are required. But current building rates lag well behind even the Government’s modest target, with just 140,000 new build homes completed last year.

The Prime Minister wants to rectify this. On the steps of Downing Street after becoming Prime Minister, she included in her list of burning injustices facing modern Britain the fact that young people now find it harder than ever to own a home. In her speech to the 2016 Conservative Party Conference, she named housing as a dysfunctional market that government needs to step up to correct.

But, as it is responsible for around 11% of land use in England, housing’s relation to the environment must also be considered. The most recent State of Nature report, published by RSPB and a range of conservation organisations, finds that in the UK 56% of the species they studied have declined over recent decades, with more than one in ten of all the species assessed are under threat of disappearing from our shores altogether. The Government has committed to turning this around, with its pledge to be the first generation to leave the environment in a better state than we found it. But it needs specific policies if it is to realise this vision.

This was the context for this month’s housing white paper. And, while many of the measures contained within it are welcome, it is a missed opportunity for both housebuilding and the environment.

Positives from the housing white paper

Let’s start with the positives. First, the Government strategy places greater emphasis on the quality of design of new developments. Under the proposals, local and neighbourhood plans must contain expectations about design standards. Local residents will be able to object to new developments on aesthetic grounds. According to government polling, 73% of people say that they would be more likely to support new homes if they look nice and are in keeping with other properties in the area. This measure will both boost numbers of homes and improve the appearance of the built environment.

Second, the Government plan supports high-density housing. The National Planning Policy Framework will be amended to advise against low-density developments in areas of high housing demand, increase scope for high-density developments in urban areas by redeveloping low-rise warehouses or extending buildings upwards, and increase flexibility over planning restrictions, such as daylight requirements. Greater density of buildings could increase the volume of new homes and improve the environment, as it frees up more land for nature and enables more sustainable transport solutions to be utilised. But this must not mean sacrificing access to urban green spaces, nor must it mean sacrificing high-quality design standards.

The negative: the Green Belt

But the white paper’s greatest shortcoming was that it maintained a very rigid approach to the Green Belt, with councils told not to allow any development except in very special circumstances. The Green Belt was first established around London in 1938, and in 1955 was extended to other cities. Its purpose was to prevent urban sprawl. The Green Belt has largely failed on its own terms.

Cities like London are characterised by low-density housing, a fact that government acknowledges in the housing white paper. For instance, Paris has a population density of 213 people per hectare, while Islington’s (London’s densest borough) is 128 people per hectare. This is because, instead of living in more densely-built homes in central London, London’s workers have just leapfrogged the Green Belt and bought homes in commuter towns throughout the South East of England. This has led to a proliferation of low-density housing developments across a much broader area, and an increase in carbon-intensive commuter journeys to work each day.

The Green Belt shouldn’t be abolished altogether. Its benefits include reducing air pollution, mitigating the impact of flooding, and providing urban residents with access to green space, which can bring positive effects on mental health. But if homes are to be built where people want to live, then some of the Green Belt will need to be built on. Many have proposed limiting these sites to ones within a certain proximity of a train station.

But there is an upside for the environment in allowing building on the Green Belt, beyond merely reducing the number and distance of journeys travelled by commuters. At the moment, much Green Belt land is of poor environmental value. Just over 7% of London’s Green Belt consists of golf courses, for instance. While this isn’t an excuse in itself for scrapping the Green Belt, it demonstrates the urgent need to improve its natural capital. Therefore, in return for being allowed to build on these highly valuable plots of land, developers should have an obligation to improve the stock of natural capital elsewhere in a local authority area, for instance by planting more trees or creating nature trails. This investment should more than reverse the loss of natural capital entailed by the new development. This would deliver more homes and improve the stock of natural capital in England.

Conclusion

Building more homes and improving the environment are not in opposition. More homes, more densely built, should be accompanied by major investment in natural capital in the outskirts of our major cities. As it considers the consultation responses to its white paper, the Government should be bold.

Sam Hall is a researcher at Bright Blue

Message to energy ministers - let industry lead the way on energy efficiency

Let’s put ourselves in the shoes of Greg Clark, Nick Hurd or Baroness Neville-Rolfe. It’s not an easy brief, in fact it’s tough, really tough. An area filled with failed policy, over-reliance on subsidy, barriers and a broad number of policy interventions which are being flung at ministers each and every week. And we still have increasing numbers of people in the UK slipping from low incomes into fuel poverty with the coldest, “leakiest” homes in western Europe.  

The signal from Treasury officials is that there’s no money in the pot, it is the end of subsidy as we know it. Best not forget to mention the fragmented voices, myriads of stakeholders all eager to push their solution as the solution to climate change, energy reduction, energy security, decarbonisation and de-risking the energy supply in this uncertain world.

Confidence in the sector is low – internally and externally. You can experience the lethargy every day from all stakeholders whether they be industry or government. This is a 'just about managing' (JAM) industry, an industry which desperately needs to be able to restore its strength, confidence and stability and to be matched by a bold and brave government and policy framework.

To ministers it cannot be clearer that this area needs government support and even intervention, a big no-no with this new Government. This industry has been decimated by bad or failed policy – policy that was not well thought-through or was just too short-term. The Green Deal burnt many fingers. We urgently need Greg Clark, Nick Hurd and Baroness Neville-Rolfe to reframe, reset and reassure this market to bring certainty in what is an uncertain time.

What would I want to see were I Energy Minister? There are a raft of solutions out there. As a minister I would feel bombarded by them, almost drowning in the sea of ideas. “But how does a solution fit together and deliver?”, I might say, wishing to see industry bringing an achievable long-term vision package to my ministerial desk that clearly outlined and addressed fuel poverty, decarbonisation, energy security, demand reduction and the health and wellbeing of consumers – and more widely addressing how we improve our housing stock, housing stock that is the coldest in western Europe. An energy minister needs to have the right information, the framework to convince Treasury.  As Baroness Neville-Rolfe knows from her background in retail, industry itself is best placed to do this.

Furthermore, for too long we, as the industry, have been in denial on the reality of politics. For many years we had an easier ride with other political parties in government. This Government has policy objectives that are tightly honed on value for money and leveraging private finance and it has repeatedly communicated its desire to reduce subsidy particularly in the longer term. Conservatives have a ‘less is more’ approach to regulation with a ‘one in and three out’ policy but are also in dire need of some positive policy and an economic hit as they negotiate Brexit.

For industry, this context needs to be central to any thinking. Let’s put ourselves in the Government’s shoes. Let’s ensure we understand the political agenda and the political language: i.e. what the Government needs to do, what it wants to do and the restrictions they face in addressing the enormity of this brief.

Industry is now coming together with the forming of the Energy Efficiency Infrastructure Group (EEIG) and putting together the pieces of the jigsaw for government – a successful, high value for money infrastructure programme for energy efficiency.  The reframing of this issue as an energy efficiency infrastructure programme would enable government to move away from short-term interventions, to set out an ultimate vision to get all homes up to a high standard of energy efficiency and to have an infrastructure delivery model for getting us there.

The concept is simple to understand - energy efficiency is infrastructure and it delivers economic returns comparable to other major infrastructure programmes. This approach will deliver for government, consumers and industry. With economic and social benefits which will boost the economy and bring jobs and savings for consumers, we can strengthen the UK’s energy security and stamp out fuel poverty, and finally realise decarbonisation to help the UK meet its challenging climate targets.

With cross-party support, Scotland is leading the way and has already committed to making energy efficiency an infrastructure priority supported by capital funding. My message to the minister is to take up this opportunity and do better, be bold, go further. Let’s not look at this as a social subsidy but instead as a savvy public capital investment and great value for money. Let’s, at the very least, get UK homes to Band C by 2030 to meet carbon budgets.

The EEIG will start 2017 by reframing the issue: we have commissioned a shared “20-year vision for a building energy efficiency infrastructure programme” with Frontier Economics to support energy ministers to create a long-term energy efficiency infrastructure programme for Britain.  The vision will be shared across Government, with Parliamentarians and central and local government policymakers.

As an energy minister I would want to make each and every UK citizen the king (or queen) of his own, “warm” and “efficient” castle again. We must not forget the consumer is king. Let us also help the ministers deliver. As the International Energy Agency’s most recent energy efficiency market report stressed: “The greatest efficiency gains have been led by policy, and the greatest untapped potentials lie where policy is absent or inadequate.” It continues:Harnessing the potential of energy efficiency is key to transitioning to a sustainable and secure energy system that generates prosperity for our world.” Let’s get harnessing and working with ministers to deliver the future of energy efficiency.

Sarah Kostense-Winterton is executive director of MIMA and provides the secretariat to the Energy Efficiency Infrastructure Group

The views in this article are those of the author, and not necessarily those of Bright Blue