Labour’s ambitious pledge to build 1.5 million homes in England by the end of this Parliament is under threat unless drastic changes are made to the planning system, a leading thinktank has warned.
The Centre for Cities has sounded the alarm, claiming that current government actions, including reinstating local housing targets and boosting social housing funds, fall far short of what is needed to meet the manifesto promise.
Sir Keir Starmer has made housing a cornerstone of his pitch to voters, vowing to “get Britain building again” to tackle the affordability crisis.
But the thinktank’s report shows Labour is heading for a shortfall of 388,000 homes, even if private sector construction reaches its post-war peak levels.
BROKEN SYSTEM
Centre for Cities chief Andrew Carter didn’t mince his words, calling on the government to adopt a ‘much more ambitious’ strategy to fix a broken system.
He says: “We’re in a productivity crisis. The UK’s big cities, which drive jobs and economic growth, don’t have enough homes to support everyone who could work there. Our planning system has failed them for decades.”
The housing crisis has left younger generations locked out of the property market. Official figures reveal that in 1997, the average house cost 3.55 times the average wage, but by 2023, that had skyrocketed to more than eight times.
ZONING SYSTEMS
To meet the housing challenge, the Centre for Cities is calling for bold reforms, including adopting a zoning system similar to those used in many European countries.
Under this system, areas are designated for development, with planning permission automatically granted if projects meet specific criteria, cutting through the red tape of the current process.
Carter adds: “By ditching the discretionary element of planning, we could unlock the homes this country desperately needs and align ourselves with other advanced economies.”
MAJOR BARRIERS
The report, authored by housing expert Anthony Breach, highlights decades of restrictive policies like green belt protections, first introduced in 1955, as a major barrier to building homes where they’re needed most.
It warns London faces a particularly dire situation and urges the government to reconsider housing plans for the capital. Recommendations include releasing green belt land near railway stations and expanding the role of the public sector in housebuilding.
Read the full report HERE.
