Ambitious housing targets

The Government has highlighted the need to increase long-term housing supply and affordability as one of its top commitments over the next three years.

The announcement came as part of the administration's latest three-year Comprehensive Spending Review which resulted in significant financial backing for planning in England.

Ministers have agreed a new Public Service Agreement (PSA) to underpin the ambition of at least 240,000 net additional homes per year by 2016.

The PSA also sets a stretching national target to increase the number of affordable homes provided to 70,000 a year and involves a commitment to improve the energy performance and carbon footprint of new homes.

The financial settlement includes some £1.7bn of targeted funding for infrastructure in the Government's growth areas, the Thames Gateway, the new growth points and the newly expanded programme of ten eco-towns. That figure includes £300m rolled forward under the provisions of the Community Infrastructure Fund arrangements.

In addition the CSR provides for £500m of incentives – via the Housing and Planning Delivery Grant regime – to make improvements in housing supply and ensure that the new-look local development planning regime is in place by 2011 to support housing delivery.

The settlement also means there will be some £175m of funding to increase the efficiency and effectiveness of the planning system, including reforms to the arrangements for major infrastructure projects, improving the capacity of local planning authorities and making sure the planning system contributes to combating climate change.