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17 March 2004

Delivering stability: securing our future housing needs

Barker Review of Housing Supply - Final Report - Recommendations

Building on analysis presented in the Interim Report, Kate Barker presents choices for Government depending on its objectives for housing.

• The UK has experienced a long-term upward trend in real house prices, 2.4 per cent per annum over the last 30 years.  This has created problems of affordability.  In addition, the volatility of the housing market has exacerbated problems of macroeconomic instability and has had an adverse effect on economic growth.  To improve macroeconomic stability and deliver greater affordability for individuals a lower trend in house prices is desirable: 
• In order to deliver a trend in real house prices of 1.8 per cent an additional 70,000 houses each year in England might be required.
• To bring the real price trend in line with the EU average of 1.1 per cent an extra 120,000 houses each year might be required.

The Barker Review’s final report sets out a range of policy recommendations for improving the functioning of the housing market:

• Government should set out a goal for improved market affordability.
• Additional investment building-up to between £1.2 and £1.6 billion per annum will be required to deliver additional social housing to meet projected future needs.
• Introduction of a Planning-gain Supplement to capture some of the development gains that landowners benefit from, to ensure that local communities share in the value of development.
• Establishment of a Regional Planning Executive to provide public advice to the Regional Planning Body on the scale and distribution of housing required to meet the market affordability target.
• Introduction of flexibility at the local level through the allocation of additional land in Local Development Frameworks, with the release of this additional land triggered by market signals.
• Establishment of a Community Infrastructure Fund to help to unlock some of the barriers to development.
• Local authorities should be allowed to “keep” the council tax receipts from new housing developments for a period of time to provide incentives for growth and to meet transitional costs associated with development.

Final report of 'Delivering stability: securing our future housing needs'

The Barker Review is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website.  For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

PDF file of Delivering stability: securing our future housing needs executive summary (91KB)
PDF file of Delivering stability: securing our future housing needs chapters and annexes (494KB)

Press notice, 17/03/04
Interim report (10/12/03), scope of review, consultation responses and commissioned research

Government´s response to the Barker review of housing supply (PBR 2005)

Associated links

PDF file of Housing Policy: an overview 18/07/05
A joint HM Treasury & ODPM policy document providing an overview of the Government's wide-ranging programme of policy measures to extend the opportunities for people to have a home that meets their aspirations. Published alongside a package of planning reform measures announced by ODPM.
Related link - Office of the Deputy Prime Minister website

PDF file of Extending home ownership
Pamphlet released by the Chancellor of the Exchequer and Deputy Prime Minister setting out details of the Government's approach to extend the opportunities available to people to meet their aspirations and have a decent home at a price they can afford.

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