10 SEP 2024
Grenfell and the tower block problem
Grenfell and the tower block problem
Last week's report into the Grenfell Tower disaster once again put the safety of tower blocks in the spotlight. There's no doubt the report is a huge and detailed piece of work. There is a lot to consider and the Prime Minister has said the Government will need up to six months to respond fully to the report.
Changes have already been made under the Building Safety Act 2022 which was brought into force last Autumn. Further structural, legislative and regulatory changes are to be expected in the light of the Grenfell Report.
There is no doubt that inquiries in the UK take far too long. Inquiries and the inquiry culture needs urgently to be addressed and reformed.
Immediately following the Grenfell tragedy, seven years ago the Housing & Finance Institute set out proposals to Repair, Protect and Rebuild high rise blocks. The proposals included a call for a moratorium on the building of new high rise tower blocks until safety was assured. However, seven years on from Grenfell not only are dangerous tower blocks still not fixed, but there is too little clarity on what makes a tower block safe when it comes to new buildings too.
Above all, the prospect of further changes arising from the inquiry report must not be allowed to delay putting right defective tower blocks. The Government's latest building safety remediation figures show there are 4,630 tower blocks of 11 metres and above that have unsafe cladding. Remediation has been completed at just 1,350 (29%) of these tower blocks. Works have yet even to begin at 2,331 (50%) of unsafe tower blocks.
That less than a third of dangerous tower blocks have been put right when the disaster took place seven years ago is a dismal record. That works have not even started for half of them is a disgrace. It is welcome that the Housing Secretary has said that action must be taken to speed up remediation. Putting all tower blocks right in the next 12 months should be a key Government priority.
Housing Delivery Snapshot - August 2024
• The Bank of England cut interest rates to 5% in a move expected to begin to boost confidence. The close 5-4 vote of the MPC came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.
• Mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.
• The latest NHBC housing pipeline figures for Quarter 2 2024 show the scale of the current housebuilding slump with a 23% fall in new registrations compared to the same quarter in the previous year.
• Latest MHCLG data reported a significant fall in residential Planning Permissions over 30%, another key housing pipeline indicator.
• Following the General Election, the new Government confirmed its 1.5 million new homes target for this Parliament.
• The Housing Secretary took immediate action to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met.
• The Housing Minister confirmed on BBC Radio 4’s Today programme on 31 July that the Government’s New Towns programme is not expected to deliver any completed homes this Parliament.
HFI Housing Delivery Newsletter - August 2024
The Bank of England’s rate cut was a ray of light, but the housing pipeline remains a cause for concern. At the Housing & Finance Institute, we look at the latest news and developments in housing since the election, including in the Housing Spotlight and Delivery Snapshot.
Rate Cut Boost
Amid a challenging year for housebuilding and mortgages, there was a ray of light on 1 August, with the Bank of England announcing a long-awaited interest rate cut to 5%. The close 5-4 vote of the Monetary Policy Committee came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.Ahead of the rate rise, the mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.
The latest Bank of England announcements will provide a little relief for some current mortgage holders and those needing to refinance. However, many first-time buyers are facing a continuing double challenge of finding money for a deposit while meeting stringent affordability criteria. So while generally mortgage market confidence may begin to rise off the back of the Bank of England interest rate cut, access to home ownership remains difficult for many, given the affordability and home deposit challenges.Housing Pipeline Concern
However, housing pipeline figures remain a cause for concern with the latest NHBC housing pipeline figures showing the scale of the current housebuilding slump. Latest MHCLG data reported a significant fall in residential Planning Permissions, another key housing pipeline indicator.Housing Policy Interventions
Following the General Election, the new Government has confirmed its 1.5 million new homes target for this Parliament. Immediate action has been taken by the Housing Secretary to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met. However, the Government’s New Towns programmes is now not expected to deliver any completed homes this Parliament, the Housing Minister told Radio 4’s Today programme. This raises questions as to how the 1.5 million new homes target will be delivered, without these major new developments coming forward at pace.
Further Government intervention on the demand side to support new buyers and home deposit savers is likely to be necessary over the next period to reverse the current housebuilding slump, together with far-reaching interventions for skills and building materials to meet a housing target that hasn’t been met since mankind first landed on the moon over 50 years ago. The HFI’s purpose is to support increased housing supply, back councils and businesses working together to build more homes and promote new ways to finance housebuilding.
Do get in touch if you would like to share ideas and suggestions on building the homes our country needs.
Best regards
Natalie Elphicke Ross
Head of Housing Delivery
natalie@hfi.org.uk
December 2024
