The Housing Green Paper: What's in it for the North?

Author: Max Nathan and Catherine Glossop
Date: 03/08/2007
Publication: Regeneration and Renewal

Housing has become a huge political issue. Ministers have responded with a major push for cheap homes, mostly in the Greater South East. So what does the Housing Green Paper offer Northern towns and cities? Is it enough?

The crux of the Green Paper is supply and affordability. No surprises here: housing supply targets rise to 240,000 homes per year by 2016. Affordable housing comprises 25% of all annual builds. £3bn of new money goes in over the next three years. Two thirds of this will be built in the Greater South East.

Ministers argue that the South's problems are also the North's. This is partly true. Both need more mixed communities, greener homes and better infrastructure delivery. Parts of the 'North' also have affordability problems: a new Northern Way report highlights overheating in parts of Manchester and Sheffield, for example.

Fundamentally, though, the 'North' is different. Many Northern cities want to remodel their whole housing offer - they have too many homes, or of the wrong type. Unlike much of the 'South', housing is a regeneration and a supply issue.

The Green Paper's analysis, targets and cashflow are aimed largely at the Greater South East. But two 'Northern' measures stand out. First, Northern towns and cities can now to bid for New Growth Points and eco-town status. This is good news, although the risk is that Southern areas will hoover up most of the cash.

Second, there is a continued commitment to funding Housing Market Renewal, but focusing on areas with 'deep seated structural problems'. Some Pathfinders may be slimmed down or cut altogether. Frustratingly, the Green Paper is unclear on this.

The Green Paper provides an expanded role and incentives for local government, following the Sub-National Review. There is more space for innovative partnerships with the private sector, social landlords and the New Homes Agency. Northern towns and cities know this: they comprise most of the proposed Local Housing Companies.

There are helpful messages on delivering schools, healthcare and other key infrastructure. Northern leaders should welcome the proposed new PSA for housing growth. But CLG now needs to show it can make the rest of Whitehall play ball.

Overall, the Green Paper's message is simple - housing growth should follow economic growth. This is basically correct. But Ministers still need to help lagging places in the North reinvent themselves, partly through the housing offer. And thriving Northern cities need extra money - plus freedom to spend it their way.