Concerned South Africans today all recognize that the housing backlog the country now faces is very serious – the shortage is variously estimated, depending on which media one reads, at between one and four million and the various media regularly put forward suggestions as to how this backlog can be reduced.
“The measures proposed,” says Paul Henry, Managing Director of Rawson Developers, “traditionally take two forms: either the recommendation that financial assistance be offered to the eventual owner or to the developers/builders; or alternatively that the laws governing development and building be relaxed to make way for lower cost, informal settlements where the occupants can do a fair amount of the building themselves.”
It should be recognized, adds Henry, that the local authorities handling housing are delivering to a certain extent but there is much work to be done.
Both the traditional methods proposed, says Henry, have been shown in South Africa to have merit if properly administered. However, he says, the UK’s experience indicates that more is required if housing backlog shortages are to be solved.
“Many members of the public have the impression that South Africa is the only country in the world where a serious housing shortage prevails,” says Henry. “A Financial Times weekend feature (8th/9th September) reports that the UK now needs 250,000 homes per annum if it is to catch up on the houses needed and, as in South Africa, the government has frankly admitted that they do not have sufficient funds to do this. The Conservative/Liberal Democrat coalition has, therefore, come up with a plan to give financial assistance to developers and to relax planning rules, i.e. to adopt the traditional relief packages mentioned in my initial comments. The Financial Times unequivocally states that, although these measures are welcome, they will come nowhere meeting the UK’s housing shortage – at best they will, the newspaper reports, result in 75,000 homes per annum being built, a fair number of which would have been erected anyway whether or not the incentives were there.”
So – what is the answer to housing shortages?
“The Financial Times,” says Henry, “suggests that the only way forward now is to unlock more state and local authority land for development, arguing that this can be done at low prices, even if the land has not yet been zoned for development. This, they believe, would not only open up new opportunities to developers, but could force Britain’s municipalities, parastatals and others ‘banking in land’ to get moving and sell - rather than to wait for it to appreciate further. It is said that a wholesale release of new land in this way would greatly reduce the price of all new land for development.”
As in South Africa, says Henry, the UK central government has to face the challenge that many municipalities will always adopt a NIMBY (Not in my backyard) stance to new development, preferring it to ‘go elsewhere’. This, says Henry, stems from an appreciation of landscape and the UK architectural heritage which is often “wholly commendable” – but does not help developers and new opportunities.
“The Rawson Property Group’s Chairman, Bill Rawson, has pointed out recently, many of the biggest municipalities and parastatals are sitting on large tracts of land, often in areas which are semi-industrial and certainly not of great scenic value - which could be ideal for low cost housing and which could be expropriated without the massive compensation costs which would be demanded by private owners. The problem, therefore, is not insoluble if this route is followed.”
A big step-up in housing delivery, adds Henry, quoting the Financial Times again, would solve the problem that under the new, more stringent economic circumstances. Many thousands of people will find themselves having to live with their parents or friends; or when they get older and do rent themselves, are unable to pay their rents on their greatly reduced pension incomes. It would also, he said, help South Africa to kick-start a more satisfactory growth rate in the economy.
“The measures proposed,” says Paul Henry, Managing Director of Rawson Developers, “traditionally take two forms: either the recommendation that financial assistance be offered to the eventual owner or to the developers/builders; or alternatively that the laws governing development and building be relaxed to make way for lower cost, informal settlements where the occupants can do a fair amount of the building themselves.”
It should be recognized, adds Henry, that the local authorities handling housing are delivering to a certain extent but there is much work to be done.
Both the traditional methods proposed, says Henry, have been shown in South Africa to have merit if properly administered. However, he says, the UK’s experience indicates that more is required if housing backlog shortages are to be solved.
“Many members of the public have the impression that South Africa is the only country in the world where a serious housing shortage prevails,” says Henry. “A Financial Times weekend feature (8th/9th September) reports that the UK now needs 250,000 homes per annum if it is to catch up on the houses needed and, as in South Africa, the government has frankly admitted that they do not have sufficient funds to do this. The Conservative/Liberal Democrat coalition has, therefore, come up with a plan to give financial assistance to developers and to relax planning rules, i.e. to adopt the traditional relief packages mentioned in my initial comments. The Financial Times unequivocally states that, although these measures are welcome, they will come nowhere meeting the UK’s housing shortage – at best they will, the newspaper reports, result in 75,000 homes per annum being built, a fair number of which would have been erected anyway whether or not the incentives were there.”
So – what is the answer to housing shortages?
“The Financial Times,” says Henry, “suggests that the only way forward now is to unlock more state and local authority land for development, arguing that this can be done at low prices, even if the land has not yet been zoned for development. This, they believe, would not only open up new opportunities to developers, but could force Britain’s municipalities, parastatals and others ‘banking in land’ to get moving and sell - rather than to wait for it to appreciate further. It is said that a wholesale release of new land in this way would greatly reduce the price of all new land for development.”
As in South Africa, says Henry, the UK central government has to face the challenge that many municipalities will always adopt a NIMBY (Not in my backyard) stance to new development, preferring it to ‘go elsewhere’. This, says Henry, stems from an appreciation of landscape and the UK architectural heritage which is often “wholly commendable” – but does not help developers and new opportunities.
“The Rawson Property Group’s Chairman, Bill Rawson, has pointed out recently, many of the biggest municipalities and parastatals are sitting on large tracts of land, often in areas which are semi-industrial and certainly not of great scenic value - which could be ideal for low cost housing and which could be expropriated without the massive compensation costs which would be demanded by private owners. The problem, therefore, is not insoluble if this route is followed.”
A big step-up in housing delivery, adds Henry, quoting the Financial Times again, would solve the problem that under the new, more stringent economic circumstances. Many thousands of people will find themselves having to live with their parents or friends; or when they get older and do rent themselves, are unable to pay their rents on their greatly reduced pension incomes. It would also, he said, help South Africa to kick-start a more satisfactory growth rate in the economy.
