Housing associations warn of "disastrous" fall in number of new houses planned by councils

Local authorities have scrapped plans for 85,000 homes in the aftermath of the government’s decision to axe regional housebuilding targets, the National Housing Federation has claimed.

Research commissioned by the campaign group suggested that a letter sent by Communities Secretary Eric Pickles in May – outlining the government’s commitment to abolishing regional strategies – had had a “very significant impact”.

The report by Tetlow King Planning highlighted a number of local authorities that have decided to reduce the number of houses they plan to build. They include:

• Exeter City Council (which has cut its target by 3,000 homes)
• North Somerset Council (10,750 homes)
• Bristol City Council (6,000 homes)
• North Hertfordshire Council and Stevenage Borough Council (plans for 9,200 homes have been suspended).

The NHF, which represents housing associations, said it believed that many more than authorities across the country will come out in the next few months and announce their intention to reduce the number of homes delivered.

It warned that the scrapping of housing targets could see the total number of homes built fall below 100,000 for the first time in almost a century, which the NHF said would be “disastrous”.

In 2009/10, just 123,000 new homes were built – the lowest number since 1923.

NHF chief executive David Orr said: “With more than 4.5m on waiting lists, and 2.5m in overcrowded conditions, this is no time to downgrade the need for new homes.

“It is frankly disappointing that so many local authorities have decided to revise down the number of homes planned for their areas following the scrapping of regional housebuilding targets. Local authorities need to recognised that just because regional targets have gone, housing need has not.”

Orr urged the government to replace regional strategies with transitional arrangements “as a matter of urgency”.

The government has suggested that local housing trusts will help deliver new homes. At a conference last month, housing minister Grant Shapps said LHTs would not have to lodge specific planning applications, so long as they have the support of the local community and they meet basic planning criteria.