The UK government has unveiled a comprehensive reform of its planning system to accelerate growth and meet an ambitious target of constructing 1.5 million new homes within the next five
years. Central to this initiative is a directive for local authorities to increase housing development.
This announcement follows Prime Minister Keir Starmer’s recent pledge to address what he called the "chokehold" of the current planning system on economic growth. The housebuilding target is one of six measurable milestones announced last week, reflecting the government’s commitment to tackling the nation’s housing crisis.
Acknowledging the scale of the challenge, Starmer emphasized the urgency of addressing housing shortages, which have left homeownership out of reach for many. "Our plan for change will prioritize builders over blockers, overhaul the broken planning system, and provide roofs over the heads of working families," he stated. He also highlighted the broader economic benefits, including fostering growth and increasing disposable income for households.
However, the Local Government Association (LGA) cautioned that planning reform alone would not resolve the issue. The LGA underscored the importance of addressing workforce shortages, construction costs, and the financial constraints faced by local authorities and housing associations. The organization also noted that faster planning approvals would not necessarily translate into higher housing output.
As part of the reform, the government has introduced mandatory housing targets, with stricter requirements for the least affordable areas. Local authorities have been given a 12-week deadline to present timetables for new housing plans or risk intervention from central government.
The reforms also place a strong emphasis on utilizing previously developed “brownfield” sites for new housing projects. Additionally, councils are required to review green belt boundaries to identify opportunities for development, particularly on lower-quality “grey belt” land. However, the government has insisted that any green belt development must include necessary infrastructure to support the new communities.
To support these efforts, councils will receive an additional £100 million ($127.6 million) in funding. This financial boost is aimed at equipping local authorities with the resources needed to meet their housing targets effectively.
This overhaul represents a significant shift in the UK’s approach to urban planning, reflecting the government’s determination to address long-standing housing challenges and stimulate economic growth. Whether these measures will be sufficient to meet the ambitious target remains to be seen.