Housebuilders in England could face substantial financial penalties under new government proposals aimed at accelerating the delivery of 1.5 million homes during the current parliament.
The measures, set out in a working paper from the Department for Levelling Up, Housing and Communities, would require developers to commit to clear construction timelines before receiving planning approval.
Progress would be monitored via mandatory annual reports. Those falling more than 10 per cent behind schedule without justification could be fined based on lost council tax revenue or barred from future planning permissions.
A so-called “delayed homes penalty” could see fines reaching tens of thousands of pounds. For instance, a delay of 50 homes – each expected to generate £1,500 per year in council tax – could trigger a £75,000 penalty. These provisions would apply only to future planning consents and developments of 50 homes or more.
SYSTEM OVERHAUL
Deputy Prime Minister and Housing Secretary Angela Rayner said the government is “backing the builders, not the blockers” in a bid to revive stalled housing output.
“We’ve taken radical steps to overhaul the planning system,” she added. “Now it’s time for developers to roll up their sleeves.”
The proposals include further reforms, such as fast-tracked permissions for large-scale mixed-tenure developments over 2,000 units and legislation to streamline compulsory purchase orders and reduce legal barriers.
ECONOMIC GROWTH
Labour’s housing agenda includes a commitment to build 1.5 million homes by 2030. The Office for Budget Responsibility has forecast housing construction will rise to its highest level in four decades, supporting economic growth.
The government has allocated £2 billion for 18,000 new social and affordable homes, alongside further investment in regeneration and construction training.
Rayner, a longstanding advocate for social housing, is reportedly pushing for additional funding in the forthcoming spending review.
