Labour plans new housing quangos and low-cost ‘green’ loans

Plans for new local housing quangos to build 200,000 homes a year by 2020 and one million interest-free Green Deal loans form part of Labour’s bid to win the next General Election.

Speaking at the Labour Party conference in Manchester at the weekend, Labour leader Ed Miliband said that, if elected next year, the party would create New Homes Corporations (NHCs)  to drive forward housebuilding.

NHCs would be set up by local authorities, and work closely with the private sector partners and housing associations to commission a wider range of developers, including SMEs, to build homes faster.

Miliband said NHCs were a key recommendation in Labour’s review of housing, being carried out by Sir Michael Lyons, and could accelerate the delivery of up to 500,000 homes.

They would provide better strategic planning for housing and housing infrastructure, take responsibility for masterplanning developments, and have powers to package up sites for housing associations and construction firms.

In addition, NHCs would drive competition and diversity among housebuilders by seeking new private partners rather than relying on the existing large firms, he said.

Meanwhile, shadow energy secretary Caroline Flint is due to tell the conference today (Tuesday) that a future Labour government would also aim to improve the energy efficiency of at least 5 million homes over the next decade.

At the weekend she also trailed plans to offer one million interest-free loans for home improvements that aim to upgrade energy efficiency, as well as reduce interest rates on Green Deal loans.

In a conference fringe speech she also said Labour would commit to making energy efficiency “a national infrastructure priority” and said the party would prioritise the street-by-street rollout of energy efficiency measures.

She said: “There’s nothing worse for me than walking along the streets in my constituency of Don Valley… to see that most houses have been done, and then one is missing.”

Responding to the announcement, John Alker, director of policy and communications at the UK-Green Building Council, said: “Labour is spot on in recognising that energy efficiency needs to be classed as a long-term national infrastructure priority. The UK is currently in the midst of an energy bill crisis and improving our draughty and leaky homes is the only way to permanently tackle this.

“However, there is a big question mark as to whether low-cost loans on their own are enough to drive action. A cross party committee of MPs identified the need for stronger incentives through  the tax system, only last week.”

Labour also plans to reintroduce a “brownfield first” policy to boost housing numbers, according to comments made by shadow planning minister Roberta Blackman-Woods at a joint FMB/CPRE fringe event at the conference.

Responding, Brian Berry, chief executive of the Federation of Master Builders, said: “It makes sense to utilise previously developed land but a strict brownfield first policy would not be helpful. What we do need is positive policies to enable and  encourage SME house builders to build out brownfield sites.”

And during his conference speech in Manchester yesterday, shadow chancellor Ed Balls committed Labour to continued austerity over the next parliament, saying that all investment in capital projects would have to be fully funded by cuts to other spending, rather than by  additional borrowing.

He commented: “In our manifesto, there will be no proposals for any new spending paid for by additional borrowing… No spending commitments without saying where the money is coming from, because we will not make promises we cannot keep and cannot afford.”