East set for house building boom to end housing crisis

Labour plans to deliver 1.5 million new homes in England over the next five years, which would require an average of 300,000 to be completed each year - almost double the 152,000 built a year over the last decade. 

The new government has announced an overhaul of the planning system - setting mandatory housebuilding targets for councils backed by plans to free up greenbelt land, which up until now had been no-development zones.  

Labour leader Sir Keir Starmer and deputy leader Angela Rayner (Image: Jacob King/PA)

The region's leading housebuilders and housing providers have welcomed the plans.

BUILDING MORE HOMES

Flagship Group is the east of England's largest social housing provider with 32,000 homes across the region.

The Norwich-based housing association announced earlier this year that it has merged with Bromford - one of the country's biggest providers of homes - to deliver 60,000 new homes - 2,000 a year for the next 30 years.

It aims to provide half of these homes as social rents let at around 60pc of the market value.

David Armstrong, Flagship Group's chief operating officer, said "the only way to make homeownership more attainable is by building more homes".

David Armstrong, Flagship Group's chief operating officer (Image: Flagship)

"It has been said that England is the most difficult place to find a home in the developed world, and house prices are out of reach for far too many people," he said.

"The average property price in the east of England is £404,100 – £26,900 above the national figure of £377,200. For the east, that’s 11.2 times the average income.

"In 2023/24, we delivered 743 new homes, including 464 for affordable rent and 191 for shared ownership."

READ MORE: Housing association merger will see 60,000 new homes built over next 30 years

Housing available at affordable rent are let at around 80pc of market value.

Shared ownership is a mix of buying and renting where a person buys a portion of a property and rents the rest from a housing association.

It is often a way of getting onto the housing ladder without a hefty deposit where people can gradually buy the rest of their home.

REMOVING BARRIERS FOR BUILDERS

Hopkins Homes is East Anglia's largest privately owned housebuilder.

Duncan Jackson, Hopkins Homes' managing director, said: “The government's plan to build 1.5 million homes across England is a significant step toward addressing the housing shortage that has long affected our region."

Duncan Jackson, Hopkins Homes' managing director (Image: Hopkins Homes)

However, he said housebuilders have long faced barriers in the form of difficulty with land acquisition, rising supply chain costs, and nutrient neutrality.

Nutrient neutrality relates to rules in place to ensure the River Wensum and the Broads are not affected by wastewater pollution which have stopped councils from being able to grant permission until mitigation measures are put in place.

"We welcome any changes to nutrient neutrality regulations that offer more practical and streamlined solutions," Mr Jackson added.

"Such changes would aid us in acquiring and developing land more efficiently, ultimately helping us deliver homes more promptly."

PLANNING OVERHAUL

The government's overhaul of the planning system will set mandatory housebuilding targets for councils to help deliver 1.5 million new homes in England over the next five years.

To help councils meet these targets, the government will review the green belt - land covering about 13pc of the country which was established more than 70 years ago to limit the growth of built-up areas and stop large towns from merging into one another. 

Low-quality green belt land will be freed-up to become part of a new grey belt – land previously described by the government as “poor quality ugly areas” - to enable new homes to be built.

Half of all dwellings built in the grey belt will be affordable homes. 

However, the east is not home to any green belt land so will not be affected by the changes.  

NORFOLK'S 45,000 NEW HOMES

The Greater Norwich Local Plan is a blueprint for where 45,000 new homes could be built across Norfolk between now and 2038.

Under the plan, these homes would be built in Norwich, Broadland and South Norfolk. 

Land has been allocated for 10,000 dwellings in Norwich. Sites include the former Colman’s factory, the Deal Ground and Utilities site near Trowse – collectively known as the East Norwich Strategic Regeneration Area – where some 3,000 homes could be built.

The Greater Norwich Local Plan allocates land which could be acceptable for new homes (Image: Greater Norwich Local Plan)

Hundreds more homes are earmarked for places such as Rackheath, Hellesdon, Drayton, Taverham, Wymondham and Thorpe St Andrew.

BOOST FOR HOMEOWNERS

Interest rates were cut for the first time in more than four years last week.

The Bank of England lowered rates to 5pc from 5.25pc - the first drop since the start of the pandemic in March 2020 having hit a 16-year high. 

Source: Bank of England (Image: Bank of England)

Interest rates dictate the cost of borrowing set by banks and money lenders, so the cut was welcomed by homeowners who have suffered rising mortgage payments.

The Bank forecasts that inflation will increase to about 2.75pc later this year, before returning to its 2pc target next year.

READ MORE: Small businesses welcome 'desperately needed' interest rates cut

The Bank of England has cut interest rates to 5pc from 5.25pc (Image: John Walton/PA)

House prices in the UK rose more than expected last month, according to figures from building society Nationwide. 

Prices increased by 2.1pc year on year in July - a monthly rise of 0.3pc.

However, first-time buyers are currently spending about 37pc of their take-home pay on mortgage payments, according to Nationwide.