Housing and Planning Act 2016
The new Housing & Planning Bill received Royal Assent on 12th May 2016, although some elements still require detail for implementation. The act will have significant implications for the housing sector in England and Wales, for property managers and letting agents and RICS members across the profession.
It is quite apparent that the main objective of the Housing & Planning Act (HPA) is around improving the affordability and extent of home ownership for first time buyers (FTB) in England and Wales, through faster delivery of new homes. This is driven by the additional target of 200,000 starter homes over the course of this parliament, which will now be defined as ‘affordable housing’.
Provisions on delivering the new-build starter homes could give rise to a greater level of activity at the lower end of the market – particularly when you consider the recent changes to the SDLT regime which, again, financially assists that end of the market. But there is little in the act to suggest better conditions for second-steppers or those wishing to downsize.
In keeping with the home ownership drive, the HPA extends to Right to Buy to tenants in housing association dwellings, and councils will be required to consider the sale of vacant stock; the latter on the basis of sell and replace.
From the Private Rented Sector (PRS) perspective, there will be a rogue landlord database and letting agents will have to keep client monies on separate business accounts. It’s certainly a start to the much-needed professionalising of the sector.
Turning to planning, Planning Permission in Principle (PPIP) may be granted automatically, subject to adoption of key qualifying documents, such as a development plan; meanwhile a well-maintained brownfield register and the granting of planning permission for homes in some circumstances under the Nationally Significant Infrastructure Projects regime should boost delivery.
There are, however, a number of post-enactment regulations that need to be devised, and RICS will ensure the voice of its membership is heard through consultation responses and parliamentary evidence sessions.