Regional targets ruling “changes very little”

Eric Pickles’ decision to scrap regional housebuilding targets was declared unlawful by the High Court, but the Government has responded that the judgement changes little.

The Secretary of State revoked all regional strategies under Section 79(6) of the Local Democracy, Economic Development and Construction Act 2009 in July; a controversial decision that provoked developer CALA Homes to challenge the Government in the High Court. The ruling declared that Section 79 powers could not be used to revoke regional strategies in their entirety.

However, the Department of Communities & Local Government (CLG) has responded to say that the ruling changes little, since it will be introducing the Localism Bill that will enact its commitment to abolish regional targets.

“The judgement changes very little,” said communities minister Bob Neill. “Later this month, we will be introducing the Localism Bill to Parliament, which will sweep away the controversial regional strategies. Top-down targets don’t build homes – they’ve led to the lowest peacetime house building rates since 1924.

“The Government remains firmly resolved to scrap this layer of confusing red tape. Instead, we will work with local communities to build more homes. This was a commitment made in the Coalition Agreement and in the general election manifestoes of both coalition partners. We intend to deliver on it.”

Liz Peace, chief executive of the British Property Federation (BPF), said: “It perhaps provides a narrow window of opportunity for some house builders to challenge local authority decisions to reject housing schemes, whilst highlighting the need for the Government to work hand-in-hand with the property industry, who are actually broadly in support of their localism agenda.

“With Government still insisting that their intention to remove Regional Strategies should continue to be taken into account by local authorities as a material consideration, few local authorities are likely to feel compelled to give the go-ahead to schemes that they do not want. The ruling is unlikely to end the current confusion within local authorities.”

In a statement, a spokesperson for CALA Homes said: “[We] fully endorse the Government’s desire to have greater local community involvement in planning but believe that the new approach will take some time to evolve into a successful process and transitional arrangements are essential to avoid a policy vacuum. With regional strategies remaining in place we have a clear legal framework to operate within to ensure that much needed housing delivery is maintained until the new arrangements have had time to settle down and become effective. The housebuilding and construction industry has a major role to play in helping to grow the economy and it is essential that investment is encouraged and supported where it is most needed.”

David Orr, chief executive of the National Housing Federation (NHF), said: “[The] judgement reinforces our view that the abrupt decision to scrap regional housing targets by the communities secretary was a hasty and damaging move, which has already seen plans for over 180,000 homes scrapped. We hope this Government will now put in place the necessary arrangements to ensure the homes this country desperately needs are delivered.”