Private developers, local councils and housing associations must work better together to manage land supply more efficiently if we are to boost the supply of affordable housing coming out of the economic downturn.

A report from the Chartered Institute of Housing (CIH) has found that poor grasp of land economics, over-reliance on section 106, aversion to risk and lack of understanding of the roles of other players in the complex land supply chain are hindering the provision of land for affordable housing.

Housing organisations must invest in the skills to value land, assess project viability and negotiate harder on price. Local councils must negotiate better with private developers on planning conditions, and should be proactive to ensure land is available for different types and sizes of developer. Direct development should be more widely used to provide new affordable homes, and this may require the HCA to review its own approaches. During the recession, flexibility and regularly updated local knowledge are essential for all partners to maximise supply of new homes. Close working relationships between the housing and planning professions will be central to success.


Abigail Davies, CIH Head of Policy and co-author of the report said: "Land supply management has been seen as the key to new housing supply for some time, but it is more important than ever as we prepare for a recovery. Our approaches to managing land supply for affordable housing during the boom were not very effective and we must address these policy and practice problems whilst we have the chance.

"In particular, we need to consider whether there can be a framework that can deliver affordable housing without over-dependence on either public or private funding, where no one supply model is dominant, and where supply can be maintained and kept constant through changes in the wider market."

(CD/JM)