Developers submit collective response to potential reduction in housing
A consortium of developers in the Leeds City Region has now submitted their formal response to the government stating their concerns about a new methodology which they say will result in a dramatic drop in housing and cause economic issues for the region.
The Leeds City Region Developers Consortium, a collective of regional residential developers including SME and large scale providers of market and affordable housing, is responding the DCLG’s new housing methodology, which TheBusinessDesk.com reported last month was of grave concern to the business community.
The Department for Communities and Local Government strategy ‘Planning for the right homes in the right places’ is currently under consultation.
The consultation response, which is supported by the Leeds Chamber of Commerce, states: “For too long, the country has failed to provide for the homes desperately required, with interventions to date have failing to address the underlying issues in delivering the level of homes required.”
It continues: “Under the draft methodology put forward by DCLG, the Leeds City Region would see a total net reduction in the annual delivery of new homes, in the order of around 3,500 dwellings. This is despite being the largest regional economy outside of London, and worth over £62bn. In 2016, Leeds alone saw the fastest rate of private sector job growth of any UK City.
“The economic consequences for a net reduction in the order of 3,500 dwellings each year are significant, with a sharp decrease in the number of direct & indirect construction jobs and total construction spend, together with a significant reduction in the delivery of affordable homes through Section 106 Agreements.”
The consortium, spearheaded by Jonson Mowat, say the key implications of a reduction in net annual delivery would see:
• 6,500 direct construction jobs lost per annum;
• 4,500 indirect construction jobs lost per annum;
• £260m annual reduction in direct construction spend;
• 700 affordable homes less delivered per annum;
• 6,500 less residents accommodated.
The consortium calls for the proposed methodology does not stifle economic growth across the Leeds City Region and ensures that future planned housing growth matches the region’s economic aspirations.
Richard Mowat, partner at Johnson Mowat, added: “The imperative to build more houses remains. House building drives economic growth and visa versa. It needs to be recognised that this methodology is simply the starting point, housing need should then be adjusted upwards to accommodate the economic aspirations of individual local authorities and the positive progress being made across the Leeds City Region as a whole”.
