Government Announces Overhaul of Planning System to Stimulate Economy
The UK government has unveiled a comprehensive overhaul of the planning system, introducing mandatory housing targets for councils as part of a broader strategy to stimulate economic growth and address the housing crisis.
New Mandatory Housing Targets
All councils in England will now be required to meet new housing targets, aiming to deliver 1.5 million additional homes. This initiative is designed to boost housebuilding in areas with the greatest need, making homeownership more accessible, eliminating barriers to economic growth, and revitalizing the construction industry.
Addressing the Housing Crisis
The updated rules reverse last year's decision to make housing targets advisory, a change implemented during a period of record-low planning permissions. The new approach underscores the government's commitment to tackling the housing shortage and meeting its goal of 1.5 million new homes.
Local Housing Plans and Government Intervention
The revised system mandates that every area must have local housing plans. The government is prepared to intervene and make difficult decisions if any region falls behind. Currently, only a third of councils have plans that are less than five years old, prompting the government to ensure local areas have a say in housing development, but not in whether homes will be built.
Deputy Prime Minister Angela Rayner has emphasized the moral obligation of council leaders to ensure more homes are built and has warned of potential government intervention if progress stalls.
Deputy Prime Minister's Statement
Deputy Prime Minister Angela Rayner said:
“Today marks 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.”
Updated Calculation Methods and Prioritizing Brownfield Land
The calculation method for housing targets will be updated to ensure homes are built in appropriate locations and development is proportional to existing community sizes. The first priority for development will be brownfield land, with reforms clarifying that the default response to brownfield development should be affirmative. Higher-density homebuilding in urban centers will also be promoted.
Reviewing Green Belt Land
To meet housing targets, councils may need to review green belt land, focusing on 'grey belt' areas. These include land on the edges of settlements or roads, as well as old petrol stations and car parks. Proximity to existing transport infrastructure will also be considered.
If local authorities fail to maintain up-to-date plans or facilitate sufficient housing development, homebuilders can propose projects on grey belt land. Environmentally protected areas will remain safeguarded.
Golden Rules and Infrastructure Development
Green belt land released for development must adhere to the government's 'golden rules,' which stipulate that 50% of new homes must be affordable. Additionally, developments must increase access to green spaces and ensure necessary infrastructure, such as schools and GP surgeries, is in place.
Support for Key Infrastructure and Affordable Housing
The government is also committed to facilitating the construction of key infrastructure like laboratories, gigafactories, and data centers. Changes to promote more large onshore wind and solar projects are also underway.
To address the decline in social rent homes, the government is revising the Right to Buy scheme and granting councils more flexibility to build and buy social homes. A review of increased discounts introduced in 2012 is in progress, with changes expected by autumn.
Future Investment in Social and Affordable Housing
Details of future government investment in social and affordable housing will be announced at the next spending review. This will enable social housing providers to plan effectively and support a significant increase in affordable housebuilding.
The government has also committed to providing councils and housing associations with rent stability at the next fiscal event, ensuring they can borrow and invest in new and existing homes while protecting social housing tenants.