Advisory Center for Affordable Settlements & Housing

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Housing Policy from a New Government

Unsurprisingly, politics and the complexity of UK housing have created a tangled web of policies. While it is extremely difficult to estimate the overall impact of the plethora of policies, some crucial lessons arise. Firstly, any policy change brings uncertainty which, in turn, creates a natural hiatus while the dust settles. Uncertainty always slows housing output. What can the Government do to reduce this hiatus? Secondly, not only does a change in policy brings uncertainty, but it also means that existing agreements need to be renegotiated. The degree to which all parties have the capacity to go through the process is a key question – one which could slow development as a whole. Is Brandon Lewis’ recent letter about s.106 negotiation enough? Thirdly, policies driven by different goals across government departments can have serious and significant consequences in other areas. This is epitomized by changes to welfare policies on housing provision. Fourthly, and as a result of the above, changes in this tangled and complex policy area may generate perverse and unintended results, opposite to government objectives. It is not at all clear (from the Government’s impact assessment, at any rate) that the aggregated impact is yet properly understood.

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