Since coming into office I have commissioned three major reports on the housing market with particular focus on the supply of and demand for housing and the affordability of housing. The Government has responded positively to the findings of these reports in Action on House Prices – April 1998, Action on the Housing Market – March 1999 and earlier this year in Action on Housing.
Government strategy, which is proving effective, is to increase housing supply to meet demand and to improve affordability, particularly for first time purchasers. Since 1997 housing output has increased by 20% and is expected to reach 50,000 units this year. House price data for recent months indicate further moderation in the rate of increase in average house prices. There is also firm evidence that first time buyers are gain ing an increasing share of the new housing market. These trends may be attributed to reduced investor activity in response to measures introduced in Action on Housing and the sustained increases in housing output.
The provision of £6 billion for social and affordable housing in the national development plan, augmented by further investment of almost £1 billion announced in Action on Housing, will ensure that the social and affordable housing needs of almost 100,000 households will be met with Government assistance over the period of the plan.
Part V of the Planning and Development Act, which was commenced on 1 November, requires local authorities to prepare housing strategies to address the housing needs of all sectors of the community, including those in need of social and affordable housing. This requires local authorities to make an assessment of current and projected needs for housing in their areas, to prepare housing strategies and vary their development plans to incorporate the strategies. Guidelines for planning authorities on the preparation of their housing strategies together with a model housing strategy are being finalised and will be published later this month.
