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Mind the (Viability) Gap

  • Social housing

How England can deliver social and affordable housing at scale

The Purposeful Finance Commission's (PFC) latest report, Mind the (Viability) Gap is the result of months of interviews with investors, local government, developers, housing associations, and academics, which ended with a sector wide roundtable last December. The research finds longstanding issues with regulation, financing, land availability, and consultations have all contributed to a widening viability gap in the social and affordable housing sector. As well as highlighting the issues, the PFC - in consultation with the sector – sets out practical recommendations that could meaningfully boost the supply of good quality social and affordable homes. 

Key Recommendations

  • grant the new construction regulator statutory powers to cut through twelve fragmented regulatory bodies and force coordination on the projects that matter most. Backed by Olympic Delivery Authority-style bodies for major housing schemes, with a clear mandate, real capital, and accountability on delivery 
  • a national library of pre-approved, regulation-compliant housing designs, informed by what communities actually want. Turning consultation from a blocker into a builder of consent
  • to unlock more viable social housing sites, government must ensure they fulfil their commitment to giving councils stronger, simpler compulsory purchase powers to acquire stalled or underused land at realistic, closer-to-existing-use values, backed by safeguards that put social value, fairness and timely delivery at the centre
  • water and sewage infrastructure must be planned and funded alongside new homes by law, ending a situation where developers are ready to build but regulators estimate water constraints alone are costing the UK up to £25bn in undelivered housing.

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