New Chancellor Rachel Reeves confirmed that the government will loosen planning restrictions and bring back compulsory housebuilding targets in a bid to build 1.5 million homes over the next five years.
Reeves said local authorities will have the power to decide where housing is built — but added but they can be overruled nationally if councils fail to meet their targets.
“So, the answer cannot be always be no; if the answer is always no, the living standards will continue to decline,” said the Chancellor in a speech at the Treasury this morning.
“We have got to ensure that families can get on the housing ladder,” Reeves added.
Labour will “immediately” update the National Policy Planning Framework to restore local mandatory housing targets.
Housebuilders will also be a key part of the government’s plans.
Reeves said: “We need the private sector to build homes.”
The Chancellor added that the Deputy Prime Minister Angela Rayner will write to planning authorities to ensure they’re prioritising brownfield and greybelt land to meet housing targets.
In April, Labour classed the greybelt as “poor-quality and ugly areas of the greenbelt” that can be used for development.
Reeves also said today that she has set up a growth delivery unit to push through housebuilding and infrastructure projects.
She pointed out: “I know there will be opposition to this. I’m not naïve, but trade-offs always exist.”
The Chancellor also pledged to:
- Create a new task force to accelerate stalled housing sites – starting with 14,000 new homes across Liverpool Central Docks, Worcester, Northstowe and Langley Sutton Coldfield
- Support local authorities with 300 additional planning officers across the country
- Review planning applications previously turned down that could help the economy
- Reform the planning system to “deliver the infrastructure that our country needs” – unresolved infrastructure projects to be prioritised
- Set out new policy intentions for critical infrastructure in the coming months
ASK Partners chief executive and co-founder Daniel Austin said: “We urge the implementation of a radical yet credible long-term plan to assuage market concerns. Their proposed target of 300,000 homes annually echoes longstanding government aspirations unmet since 2004.
“Four primary factors underpin this crisis: over-reliance on major housebuilders, politicised planning discouraging development, net loss of social housing, and post-Brexit labour shortages.
“Addressing these roots is imperative to alleviate the affordability crisis.
Austin added: “Reinvigorating small and medium-sized housebuilders is pivotal. Incentives should facilitate access to opportunities, including allocating small land plots for development and streamlining planning permissions for brownfield sites.
“Boosting skilled labour domestically and reforming the planning system are equally crucial.”
Propertymark chief executive Nathan Emerson said: “It’s crucial there is transparency on how they [the government] intend to meet their ambitious target of building 1.5 million new homes by the end of its term in government, which in reality would mean having a large housing estate built every day before the next general election.
“While we support more homes being constructed, there needs to be careful consideration on background infrastructure to ensure we are making the best use of available land, ideally prioritising a brownfield-first approach.”
Audley Group chief executive Nick Sanderson pointed out: “The new government must also acknowledge the role of specialist housing and expedite its delivery, including housing that is tailored to our growing older population.
“Only then will we see more homes come to the market as people choose to downsize, leaving family homes available for those further down the ladder.
“It takes bravery to move away from promises of simply building more and more and instead focus on what needs to be built to make the most difference. I’d like to hear more from the government on taking that leap.”
