Thirty-first Report - Starter Homes
Select Committee
Public Accounts Committee
HC 88
9 December 2020
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty first report from Session 2019-21 · published 24 Mar 2021
Recommendations & Conclusions
20 results
2
Recommendation
Accepted
The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking...
Recommendation
The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking transparency and risks less money being available to local authorities for housing and infrastructure. First Homes differ from Starter Homes as they will be sold …
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Government Response Summary
The government agrees with the recommendation and states it has published modelling on the policy's effect on developer contributions. It has also developed a legal framework for the secondary resale market with HM Land Registry, which will be publicly set out in due course.
HM Treasury
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3
Recommendation
Rejected
We are disappointed that the Department remains unable or unwilling to clarify how it will...
Recommendation
We are disappointed that the Department remains unable or unwilling to clarify how it will achieve its ambition of 300,000 new homes per year by the mid-2020s. We are wearily familiar with the Department’s lack of clarity over how it …
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Government Response Summary
The government explicitly rejects the recommendation to clarify how various housing schemes contribute to the 300,000 homes ambition and to provide a detailed assessment of home types and tenures within three months. It asserts its transparency through published plans and quarterly data, outlining general efforts and investment.
HM Treasury
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4
Recommendation
Not Addressed
We welcome Homes England’s commitment to provide us with regular updates on its progress delivering...
Recommendation
We welcome Homes England’s commitment to provide us with regular updates on its progress delivering affordable housing, but we are concerned that it and the Department has yet to clarify what ‘affordable’ actually means, and how much it costs to …
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Government Response Summary
The government response is unrelated to the recommendation, instead addressing a different committee conclusion and recommendations regarding the 300,000 homes ambition. It therefore does not address the request for a clear definition of 'affordable housing' or Homes England updates.
HM Treasury
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5
Recommendation
Not Addressed
The long-term success of the Department’s housing policies depends on it being able to engage...
Recommendation
The long-term success of the Department’s housing policies depends on it being able to engage effectively with organisations across the housing sector and provide clarity on funding, without losing sight of the needs of those who are unlikely to be …
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Government Response Summary
The government response is unrelated to the recommendation, instead addressing a different committee conclusion and recommendation regarding the definition of 'affordable housing'. It therefore does not address the request for information on homelessness, rough sleeping, or housing standards.
HM Treasury
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1
Conclusion
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities & Local Government (the Department) about its Starter Homes policy and other policies that aim to support people who …
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Government Response Summary
The government's response did not address the committee's introductory statement about its housing inquiry, instead providing unrelated information about cash access, draft legislation for it, and cashback without purchase.
HM Treasury
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40
Conclusion
Acknowledged
The November 2015 Spending Review provided £2.3 billion to support the delivery of 60,000 of...
Conclusion
The November 2015 Spending Review provided £2.3 billion to support the delivery of 60,000 of these planned homes.4 From 2015, the Home Builders Federation administered a register of people interested in buying a Starter Home, on behalf of the Department.5
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Government Response Summary
The government acknowledges the committee's conclusion by reiterating the factual statements about the 2015 Spending Review and the Home Builders Federation's role.
HM Treasury
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6
Conclusion
Not Addressed
Homes England forecasts that around 36% of homes (2,370 of the total 6,600 planned homes)...
Conclusion
Homes England forecasts that around 36% of homes (2,370 of the total 6,600 planned homes) built on the land remediated through funding intended for Starter Homes will meet the definition of affordable housing.16 We were concerned though that funding intended …
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Government Response Summary
The government's response did not address the committee's concerns about the proportion of affordable homes, cost recovery, or timelines related to the Starter Homes programme, instead providing unrelated information about the Bounce Back Loan Scheme.
HM Treasury
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7
Conclusion
Accepted
We asked the Department about the similarities between the new First Homes policy and the...
Conclusion
We asked the Department about the similarities between the new First Homes policy and the Starter Homes policy. The Department emphasised how they differ: • First Homes will be sold at a higher discount of at least 30%, compared with …
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Government Response Summary
The department has developed and started testing a legal framework with HM Land Registry to ensure First Homes discounts are passed on perpetually and will continue to work with stakeholders to ensure a smooth secondary market.
HM Treasury
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8
Conclusion
The Department told us that this was not going to be a quick policy to...
Conclusion
The Department told us that this was not going to be a quick policy to implement and it did not yet have a timetable for implementing First Homes or a target for how many it wants built.21 It explained that …
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HM Treasury
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9
Recommendation
Accepted in Part
The Department explained that the First Homes discount will be funded through contributions from developers.24...
Recommendation
The Department explained that the First Homes discount will be funded through contributions from developers.24 Local authorities will be expected to ensure 25% of affordable homes built by developers contribute to the First Homes initiative.25 However, we have previously criticised …
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Government Response Summary
The government agrees and states it has published a detailed impact assessment and modeling for the First Homes programme, which includes the effect on developer contributions, and will update this after further consultation, partially addressing the need for monitoring.
HM Treasury
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10
Recommendation
Rejected
We have previously challenged the Department on its detailed plans and projections for how it...
Recommendation
We have previously challenged the Department on its detailed plans and projections for how it would achieve its target of building 300,000 new homes per year by the mid- 2020s, most recently in our report Planning and the broken housing …
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Government Response Summary
The government explicitly disagreed with the recommendation to publicly set out a full plan and year-on-year projections for achieving the 300,000 new homes target, asserting its ongoing transparency and progress through existing plans and funding.
HM Treasury
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11
Conclusion
Rejected
We were disappointed that the Department remained unwilling to clarify how it will achieve this...
Conclusion
We were disappointed that the Department remained unwilling to clarify how it will achieve this rate of building, which it now refers to as an ambition rather than a target. We asked why it thought that there should not be …
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Government Response Summary
The government rejects the committee's implied criticism of its lack of clarity, asserting its transparency through published plans and quarterly data. It highlights significant progress in home delivery and outlines various funding and policy reforms supporting the 300,000 homes ambition.
HM Treasury
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12
Conclusion
Rejected
The Department explained how its reforms to the planning system were intended to speed up...
Conclusion
The Department explained how its reforms to the planning system were intended to speed up building and, through increasing certainty with the system, encourage more small and medium-sized developers to build homes. It told us that it was also looking …
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Government Response Summary
The government explicitly disagreed with the (misidentified) recommendation, asserting it is already transparent about its housing objectives and progress, and highlighted existing funding for housing and planned reforms.
HM Treasury
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13
Conclusion
Accepted
We asked the Department what it now meant when it referred to ‘affordable’ housing, particularly...
Conclusion
We asked the Department what it now meant when it referred to ‘affordable’ housing, particularly in relation to the funding originally intended for Starter Homes that was subsequently redirected to a broader range of housing, including affordable homes.33 The 28 …
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Government Response Summary
The government agreed with the committee's recommendation and stated it was implemented, clarifying its definition of affordable housing in the National Planning Policy Framework and reiterating its commitment to investing over £12 billion in diverse affordable housing.
HM Treasury
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14
Conclusion
Accepted
Homes England told us that the number and proportion of affordable homes planned for the...
Conclusion
Homes England told us that the number and proportion of affordable homes planned for the sites intended for Starter Homes has increased from 1,700 (29%) to 2,370 (36%), reflecting an increased focus on affordable housing.37 However, Homes England was unable …
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Government Response Summary
The government stated it agreed with the committee's recommendation and considered it implemented, by defining affordable housing in the National Planning Policy Framework and committing over £12 billion to delivering a variety of affordable homes through the new £11.5 billion Affordable Homes Programme.
HM Treasury
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15
Conclusion
Accepted
First Homes, and previously Starter Homes, are aimed at people who want to own their...
Conclusion
First Homes, and previously Starter Homes, are aimed at people who want to own their own home and have an income, as the schemes require applicants to raise a mortgage. They are not schemes intended to help house people in …
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Government Response Summary
The government accepted the committee's recommendation to explain its approach to homelessness, rough sleeping, and temporary accommodation, committing to provide an update to the committee within three months (by April 2021).
HM Treasury
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16
Conclusion
Accepted
The Department and Homes England told that they were trying to encourage the building of...
Conclusion
The Department and Homes England told that they were trying to encourage the building of smaller, cheaper homes through investing in firms that build modular homes and encouraging sites with high levels of modular construction. It explained it was looking …
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Government Response Summary
The government agrees with the committee's observation and commits to specific actions by Autumn 2021 to increase the use of modern methods of construction (MMC). These include Homes England funding for showcase sites, industry collaboration on warranties, research into safety, and setting a 25% MMC target within the Affordable Homes Programme's Strategic Partnerships.
HM Treasury
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17
Conclusion
Rejected
We asked the Department how it would ensure that its approach delivered the right kind...
Conclusion
We asked the Department how it would ensure that its approach delivered the right kind of homes in the right places.44 We heard from the Department about a range of other actions it is pursuing: • It wants its planning …
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Government Response Summary
The government explicitly disagreed with the (misidentified) recommendation, stating it is transparent about its housing objectives and progress, and highlighted existing funding and reforms, including the Planning for the Future White Paper, aimed at increasing housing supply.
HM Treasury
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18
Conclusion
Rejected
We queried why student accommodation and converted offices count, in the Department’s statistics, as new...
Conclusion
We queried why student accommodation and converted offices count, in the Department’s statistics, as new housing when student accommodation is not necessarily a permanent home, and many office conversions are tiny, lack proper insulation, and could not be said to …
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Government Response Summary
The government explicitly disagreed with the (misidentified) recommendation, explaining that student accommodation and converted offices are legitimately included in official 'Net Additional Dwelling Statistics' as they contribute to housing supply.
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19
Conclusion
Accepted
Homes England recognised that success in delivering housing would rely on close working with local...
Conclusion
Homes England recognised that success in delivering housing would rely on close working with local authorities, good relationships with developers and mindfulness over land value as the key determinant of delivery and maximising value for money from public subsidy of …
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Government Response Summary
The government accepted the committee's recommendation to explain its approach to homelessness, rough sleeping, and temporary accommodation, committing to provide an update to the committee within three months (by April 2021).
HM Treasury
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