Turning developments into communities: why integrate housing and infrastructure

With countries around the world facing housing shortages, governments are rethinking how to deliver new homes at scale.

But the challenge isn’t just about housing.

Infrastructure makes homes liveable and turns developments into communities.

But governments often overlook how to plan and deliver them together efficiently to maximise the benefits they offer to people, the environment and the economy.

The ICE’s new insights paper explores the barriers and opportunities to unlocking affordable, sustainable, and effective housing growth through infrastructure.

A global challenge

The paper focuses on the UK, which research suggests has significantly less homes available than other developed nations.

Combined with choices about where new homes have been built, this has made housing less affordable and limited regional growth.

In response, the government wants to build 1.5 million new homes in England over the current Parliament.

The paper also draws insight from around the world – some of which was discussed at a recent ICE presidential roundtable.

The Australian government, for example, has promised to deliver 1.2 million “new, well-located homes” over five years.

When tackling housing challenges, there are four key areas governments should consider:

1. More integrated strategic planning

Governments often make housing a political priority – but then fail to approach it strategically.

Housing and infrastructure plans, national and subnational governments and the public and private sectors all need to be aligned.

In practice, too many homes have been planned in the wrong places, away from where they could offer the greatest benefits.

For example, sites with poor transport connectivity reinforce car dependency and reduce people’s access to jobs in city centres.

A new UK framework is emerging

The UK’s new 10 Year Infrastructure Strategy combines planning for economic and social infrastructure for the first time.

A Long-Term Housing Strategy will follow later this year.

Future measures will include spatial development strategies to join up housing and infrastructure development in all parts of England.

2. Ensuring development benefits the public

In many countries, the planning system is another major barrier to housing and infrastructure delivery.

In the UK, the government has placed great emphasis on speeding up the system.

But ambitious building targets put an onus on governments to meaningfully engage with the public about the impact of new developments.

Some research suggests public opposition to development may be overstated.

Concerns that do exist often stem from reasonable fears about pressures on existing infrastructure.

Many developments have been blocked because utility companies can’t upgrade their infrastructure quickly enough to provide adequate services.

Governments must ensure that development delivers tangible benefits for local communities – like better transport links, green spaces or social services.

3. Maximising existing infrastructure

Historically, most new homes have been delivered through either urban extensions or infill (building on underused land within existing developments). Both use existing infrastructure.

This can be more sustainable, with lower construction emissions and fewer environmental impacts.

Making better use of existing infrastructure also provides the easiest opportunities to develop entirely new settlements – for example, where existing transport links have spare capacity.

Governments should be mindful of the limitations of existing infrastructure – particularly around capacity – and any maintenance and upgrade requirements.

For example, climate change raises new challenges – like the risk to water infrastructure from the likelihood of more floods and droughts.

4. The investment challenge

Paying for new housing, and its enabling infrastructure, is a major challenge around the world.

New developments can increase the value of surrounding land. Capturing this can help pay for additional infrastructure and homes.

But the approach isn’t always suitable, and the amount raised may not cover the cost of infrastructure.

Efficient housing and infrastructure delivery needs long-term, place-specific funding commitments.

At the recent Spending Review, the UK government announced £39 billion investment over 10 years in affordable homes and £4.8 billion to encourage private investment in housebuilding.

But it’s not just about more money

More investment certainty is welcome.

But governments must also prioritise productivity gains that lower the cost of infrastructure delivery – a big challenge in the UK.

Coupled with a more strategic approach to development this will help reduce the investment needed.

No silver bullet

There’s no silver bullet to meeting the UK’s housing target.

Market arrangements, lack of investment, planning delays, skills and workforce capacity, weak productivity, public opposition… all these and more have held back development.

A more joined-up, strategic approach can bring together these many strands.

Governments seem increasingly alert to the link between housing and infrastructure.

In the UK, a more integrated framework is emerging. Time will tell if this enables the government to meet its ambitious target.