RICS has published a residential policy document which makes recommendations to the Government and the construction sector on legislation, policy and regulation.
"With a Government currently unwilling to regulate, it is up to the sector to lead the way and RICS is well-placed to do this. However, Government must sooner or later grasp the nettle and work with industry to protect the consumer," said the policy document (16KB / 503KB PDF).
The Government's move to identify surplus public sector land is a "welcome step", but the challenge is to ensure that development takes place, it said.
There is tension between central Government to get the best financial value from land and the Homes and Communities Agency (HCA), which is tasked with housing delivery, the policy said. "A joined up approach is essential," it said.
The RICS policy recommends that the Government issue a clear, long-term, nationwide strategy or plan for the release of permissible land, which is "key" for developer confidence, it said.
Details of public land should be published and a national asset register should be used to ensure transparency. Definitions of "best value" should also be provided for "clarity and certainty" to speed up the disposal service, it said.
To ensure that homes are let at affordable, market rents and forms of shared ownership, the policy document recommends that section 106 requirements are placed on developers to ensure this.
The National Planning Policy Framework (NPPF) helps to reduce the complexity of the planning system and ensure that housing development is bought forward, the policy document said. But it recommends that Government endorse the RICS Financial Viability in Planning Guidance to support the NPPF.
Where section 106 agreements are used to ensure that different types of rents are provided, the agreement should provide that 'market rent units' are rented out for a minimum of 10 years and that all 'affordable rent units' remain so forever, the Policy said.
The housebuilding industry is "sceptical" about the impact of the Get Britain Building scheme, the document said, and the majority believe it will have "little consequence" for the economy as a whole.
RICS recommends that the Government encourage banks to work in partnership with small and medium sized property developers and construction firms to develop new projects and that it should underwrite or act as a guarantor for small to medium sized developers to help them compete for this funding on a level playing field with large-scale developers.
The Government should also support non traditional forms of construction, the proposal said. This could be done using tax breaks and by providing better education for lenders on how to value these methods. A lack of understanding of the valuation of these methods is slowing down the process of innovation, the Policy said.
