NEWS / Infrastructure Intelligence / Housing reform plan unveiled to get Britain building

Deputy prime minister Angela Rayner - image: Gov.uk

31 JUL 2024

HOUSING REFORM PLAN UNVEILED TO GET BRITAIN BUILDING

The government has an overhaul of the planning system and get Britain building. 

All councils in England are to be given new, mandatory housing targets to pave the way to deliver 1.5 million more homes.  

The new targets will mean councils must boost housebuilding in areas most in need, helping more people buy their own homes, removing the largest barriers to economic growth.  

The new rules will reverse the decision last year to water down housing targets, by making them explicitly advisory, at a time when planning permissions were at a record low. 

New targets will flow into the development of local plans – with communities having a say in the building of homes and infrastructure needed.     

The deputy prime minister has written to every council leader and chief executive in England to make clear that there is “not just a professional responsibility but a moral obligation to see more homes built”, and that she will not hesitate to use her powers of intervention should it be necessary – including taking over an authority’s plan making directly.   

Deputy prime minister Angela Rayner said the announcement marked “a significant step to getting Britain building again”.     

“Our decisive reforms to the planning system correct the errors of the past and set us on our way to tackling the housing crisis, delivering 1.5 million homes for those who really need them.    

“And something I am personally proud of, our new flexibilities for councils will boost the number of social and affordable homes and give working families a better route to a secure home.” 

In addition to restoring mandatory housing targets, the method used to calculate them, which relied on decade old data, will be updated. 

The new method will require councils to ensure homes are built in the right places and development is proportionate to the size of existing communities, while adding an extra level of ambition in the most unaffordable areas.    

The first port of call for development will be brownfield land. Reforms announced will make explicit that the default answer to brownfield development should be “yes” and promote homebuilding at greater densities in urban centers, like towns and cities.  

To help deliver 1.5 million homes over the next five years, councils will have to review their green belt land if needed to meet their own target, identifying and prioritising ‘grey belt’ land, which the government has today set out a definition for. 

This includes land on the edge of existing settlements or roads, as well as old petrol stations and car parks.   

The update will make clear the requirement for councils to consider the proximity of new homes to existing transport infrastructure.   

Where local authorities do not have up-to-date plans in place or enable sufficient housing to come forward to meet local targets, homebuilders can bring forward proposals on grey belt land. In all cases, land that is safeguarded for environmental reasons will continue to be protected.   

Land released in the Green Belt will be subject to the government’s ‘golden rules’, which make clear that development should deliver 50% affordable homes, increase access to green spaces and put the necessary infrastructure is in place, such as schools and GP surgeries.    

Alongside building the housing that we need, the government is committed to making it easier to build key infrastructure such as laboratories, gigafactories and data centres, as well as making changes to deliver more large onshore wind projects and solar development across the country.   

In addition to these reforms to the planning system, the government is also taking steps to deliver quality affordable and social housing, working to reverse the continued decline in the number of social rent homes.

This includes changes to Right to Buy, giving councils flexibility to use their receipts to build and buy more social homes. The government has started its review of the increased discounts introduced in 2012, with changes to be implemented in the autumn.   

The deputy prime minister has also confirmed that details of future government investment in social and affordable housing will be brought forward at the next spending review, so social housing providers can plan for the future and help deliver the biggest increase in affordable housebuilding in a generation.  

Responding to calls from the sector, the government has also confirmed that at the next fiscal event it will provide councils and housing associations with the rent stability they need to be able to borrow and invest in new and existing homes – while ensuring that there are appropriate protections for both existing and future social housing tenants.

Iain Painting, planning director at Stantec, said: “Some may question the value of introducing the new, higher, 370,000 annual housing target when the previous target was never met – but this would be to misunderstand the impact a strengthened target and wider reforms could have.  

“Combined with making the targets mandatory, it will drive development plan policy response and allocations and in the short term, support the promotion of departure applications, for example where local plans are out of date.   

“There will be much discussion around the significant changes to the definition of ‘inappropriate development in the Green Belt’, and how this could play out during applications and appeals.  “This will be a vital area for consultation with the sector over the coming weeks, and this may not be the wording that appears in the final version.

“The focus of yesterday’s announcement was ultimately on housing – yet we also need to think more holistically to ensure we’re planning for jobs, growth and infrastructure alongside homes in a strategic way.  

“The published draft changes signal a positive move in this direction, recasting the duty to co-operate and setting out the need for plans to allocate land to meet commercial and infrastructure needs.

“While these reforms are welcome, as is the commitment to a ‘universal system of strategic planning’ within this parliament, we will need to see how this aligns with the suggested reforms to devolution, the increased responsibilities of metro Mayors, and the introduction of ‘Local Growth Plans’.  The interrelation of new legislation will be complex and must be planned, communicated and implemented carefully if the government is going to offer the clarity developers, planners and local authorities need, and deliver tangible results in the next five years.”

Kate Jennings, chief executive officer for The Association for Consultancy and Engineering (ACE) and the Environmental Industries Commission (EIC), said: “We welcome the pledge made by the deputy prime minister for 1.5 million new houses and supporting infrastructure based on community need, along with the call for support to balance house building needs with nature and the environment.

“It is crucial that government funding for infrastructure is stable to garner much needed support from investors as well as to help the sector sustain their recruitment and retention campaigns for a skilled workforce to deliver the UK's infrastructure and housing plans.

“We're pleased to see that the government has pledged to provide greater spending transparency and reviews of industry and infrastructure planning policy and strategy. 

“The commitment to spending with longer term funding settlements and simplified local government and mayoral settlements, aligns with our manifesto.

"The new NISTA and promised 10-year infrastructure strategy, also meet our recommendations for creating a platform for growth. More time is needed to see if these measures will be successfully implemented but it's a positive start.

“Whether it's about new homes or the energy, water or transport, health or education infrastructures to serve them, our members hold the solutions to creating safe and thriving communities and look forward to working in partnership with government to realise mutual plans for sustainable growth.

Iain Painting, planning director at Stantec, added: “Some may question the value of introducing the new, higher, 370,000 annual housing target when the previous target was never met – but this would be to misunderstand the impact a strengthened target and wider reforms could have. 

"Combined with making the targets mandatory, it will drive development plan policy response and allocations and in the short term, support the promotion of departure applications, for example where local plans are out of date.   

“There will be much discussion around the significant changes to the definition of ‘inappropriate development in the Green Belt’, and how this could play out during applications and appeals. 

"This will be a vital area for consultation with the sector over the coming weeks, and this may not be the wording that appears in the final version.

“The focus of yesterday’s announcement was ultimately on housing – yet we also need to think more holistically to ensure we’re planning for jobs, growth and infrastructure alongside homes in a strategic way. 

"The published draft changes signal a positive move in this direction, recasting the duty to co-operate and setting out the need for plans to allocate land to meet commercial and infrastructure needs.

“While these reforms are welcome, as is the commitment to a ‘universal system of strategic planning’ within this Parliament, we will need to see how this aligns with the suggested reforms to devolution, the increased responsibilities of metro Mayors, and the introduction of ‘Local Growth Plans’. 

"The interrelation of new legislation will be complex and must be planned, communicated and implemented carefully if the government is going to offer the clarity developers, planners and local authorities need, and deliver tangible results in the next five years.”

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