In a landmark effort to address the nation’s chronic housing shortage, the government has unveiled a sweeping overhaul of the planning system, aimed at delivering 1.5 million new homes by the end of the current Parliament.
This ambitious target forms the centerpiece of the government’s “Plan for Change,” a strategy designed to tackle housing unaffordability, accelerate economic growth and provide greater security for working families.
Under the new framework, local councils will be required to meet higher annual housing targets, with a collective goal of 370,000 homes a year across England.
Councils in areas with the greatest housing demand and economic growth potential will face the most significant increases in targets.
NATIONAL PLANNING POLICY FRAMEWORK
For the first time, the government’s revised National Planning Policy Framework (NPPF) includes provisions for the development of lower-quality “grey belt” land, with strict requirements to ensure affordable housing, green spaces, and essential local services accompany new developments.
Deputy Prime Minister Angela Rayner emphasised the urgency of the reforms, stating: “We cannot leave over a million families on housing waiting lists and an entire generation locked out of homeownership.
“Our Plan for Change will shake up a broken planning system and ensure everyone does their part to meet housing needs.”
INCENTIVES AND ENFORCEMENT
To support councils in meeting these targets, the government has pledged an additional £100 million in funding for local planning authorities.
This includes hiring 300 new planning officers and providing grants for technical studies and site assessments. However, councils failing to adopt up-to-date local plans within three months of the updated NPPF will face government intervention.
The reforms also include a strengthened presumption in favour of sustainable development for areas that lag behind on their housing targets. Developers will be incentivised to prioritize brownfield sites, and “brownfield passports” are being considered to expedite development on urban land.
DEVELOPMENT GOLDEN RULES
To balance growth with environmental and community concerns, the government has introduced new “golden rules” for development.
These include brownfield first – maximising the use of previously developed land and grey belt second – reviewing lower-quality greenbelt land for housing while protecting high-value green spaces.
Also in the golden rulebook are affordable homes – prioritising social and affordable housing as well as public services and infrastructure where all new developments will be required to include nurseries, GP surgeries and transport links.
Genuine green spaces such as enhancing parks and recreational areas are also a must.
Prime Minister Sir Keir Starmer highlighted the personal significance of the reforms, recalling his upbringing in a modest family home.
“The dream of homeownership is slipping away for too many people,” he said. “These changes will ensure hard work is rewarded with the security of a home.”
IMMEDIATE ACTIONS
The government is already taking steps to fast-track housing delivery, including launching a New Homes Accelerator to unlock stalled developments and awarding millions to councils for brownfield site redevelopment. An independent New Towns Taskforce has also been established to explore large-scale community projects.
FUTURE PROPOSALS
As part of its ongoing efforts, the government will publish updates to the National Design Guide next year, ensuring new homes are well-designed and sustainable.
Plans to allow local authorities to set their own planning fees and expand funding for SME housebuilders are also under consideration.
Sir Kier Starmer added: “This is about rebuilding Britain to deliver for working people and making the dream of homeownership a reality once again.”
MAJOR PROBLEMS
Richard Pike, chief sales and marketing officer at Phoebus, said: “I have yet to meet a single person in our industry who believes that we will hit the housebuilding target of 1.5 million homes over the next five years.
“Lack of employees in the construction sector, increased materials costs and, of course, the lack of non-greenfield sites are all pretty major problems!
“Housing stock, whether owned or rental, is at a premium. I find it incredible that commercial real estate that is currently empty following the pandemic is not being utilised for residential needs.”
INCENTIVISE DEVELOPERS
He adds: “I also believe that developers must be incentivised to develop rather than sitting on sites for elongated periods.
“That said, on the plus side, if the plans are embraced by industry and momentum gathers pace, we should see some invigoration in local business and the overall economy.”
INFRASTRUCTURE FIRST
Timothy Douglas, Head of Policy and Campaigns at Propertymark, adds: “An infrastructure first approach is key to delivering the homes the country desperately needs.
“Whilst mandatory targets focus minds towards achieving a goal, a one size fits all approach to housing delivery will not be enough if the UK Government are to hit their ambitious housing targets.
“More must be done to work with local authorities to ensure there is the capacity, political will and buy-in from local communities to build in more areas across the country.”
RUSHED PLANNING DECISIONS
Allisson Whittington, Head of Housing and Health at Zurich UK, adds: “Increasing the supply of housing for those that need it most is always welcome.
“However, while we understand the Government’s desire and need to increase the housing supply through an enhanced building programme, we would caution against rushing planning decisions and pressing local authorities to build on areas, such as floodplains, that might not be sustainable.”
And she adds: “We need to build resilient homes that we can be proud of in years to come and that will combat the rigours of everyday life, and if we rush the planning and development process now then this may cause problems in years to come.
“Housing Associations already make a significant contribution to the delivery of the new housing supply despite having had their finances stretched over recent years, but they need the right support in place to enable them to continue to play their part in creating homes for all.”
