Local Housing Need Assessment Reform

Jess Brown-Fuller Excerpts

Tuesday 13th May 2025 Westminster Hall

[Jess Brown-Fuller (Chichester) (LD)]

It is a pleasure to serve under your chairmanship, Mrs Hobhouse, for the first time, I think. I congratulate my hon. Friend the Member for Horsham (John Milne) on securing this vital debate. My constituency of Chichester has been grappling with serious housing challenges, which have been continually worsened by a deeply flawed planning process. The demand for social housing vastly outstrips supply. Private rentals are prohibitively expensive, and sky-rocketing house prices have made home ownership increasingly out of reach for those who have grown up in my constituency.

Housing developments should enhance our communities, delivering affordable, sustainable homes alongside essential infrastructure, but the current approach does the opposite. The standard method for assessing housing need imposes arbitrary national targets on local authorities, which ignore the specific needs and constraints of each area. It fails to deliver genuinely affordable homes and does little to reflect local demand or geography. As my hon. Friend highlighted, the standard method fails to address above-inflation house price rises. Our average house price in Chichester, according to the Office for National Statistics, is £454,000. In just one year, to February 2025, the price of a semi-detached house in Chichester rose by 8.1%, yet Chichester has seen huge-scale development in recent years. Meanwhile, the average salary in my constituency is under £30,000, which is below the UK median.

When new homes are delivered, they often enter the market at prices higher than the local median, as the right hon. Member for East Hampshire (Damian Hinds) mentioned. That artificially inflates the affordability ratio, which then increases future housing targets, creating a vicious cycle that drives prices even further out of reach. It does nothing to address the real challenges that my constituents face in getting on the housing ladder. Instead, it leaves new developments affordable only to those who are moving into the area, not those already living there. At the same time, councils face an uphill battle in trying to ensure that developments, required by the same standard method, include adequate levels of social and affordable housing.

At present, we have over 2,000 families on the wait list for social homes in Chichester. Any development of 11 homes or more is expected to provide at least 10% as affordable housing. Both Chichester and Arun district councils, which sit within my constituency, request 30% social and affordable housing in their local plans to address some of the unmet need locally, but those targets are continuously undermined by viability assessments submitted by the developers, because of the high land prices in our constituency.

A recent example is a 2,200 home development to the west of Bersted, approved by Arun district council on the basis that it was included in the Conservative local plan from 2022. There is strong opposition in the community to the proposal, not only because those homes will add to the strain on local infrastructure, but because only 10% of those homes will be “affordable”. The very definition of affordable is fundamentally flawed when even 80% of unaffordable is still unaffordable for so many people. The developer claimed that a higher proportion of social and affordable homes on the site would have made the project commercially unviable, so the council was left with no power to enforce its requested levels of social and affordable houses.

That is why I was pleased that my hon. Friend the Member for Taunton and Wellington (Gideon Amos) tabled an amendment to the Planning and Infrastructure Bill, calling on the Government to adopt a separate social housing target. I am sure that would be welcomed by local authorities up and down the UK, because they are best placed to know what their communities need, not the developers that are trying to build in them.

The standard method also fundamentally fails to consider any geographical constraints, which ties the hands of councils during land allocation. In my area, 70% of Chichester district is covered by national park, with an additional 5% designated as national landscape at Chichester harbour. That means that our ambitious housing target, which has doubled under the Labour Government, must be met within just 25% of available land, yet the housing target remains unadjusted.

We need a method for assessing local housing that actually works for communities—one that recognises local constraints, delivers genuinely affordable housing, protects the national landscape and ensures that every development contributes positively to the places that we call home. This will not change until the top-down approach of the standard method for assessing local housing need is reformed to genuinely reflect community need, and until local authorities are given the power to challenge and regulate developers effectively. I beg the Minister to look again at the standard method so that we can truly address the local housing need for areas such as mine in Chichester.