Industry cautiously welcomes Labour’s “landmark overhaul” of NPPF

Leading industry figures have broadly welcomed Labour’s “landmark overhaul” of the National Planning Policy Framework (NPPF) but warned that more needs to be done if the UK to hit the target of 1.5 million new homes in the next five years.

Under the new planning rules, councils will have 12 weeks to ensure new local plans are up to date, mandatory housing targets have been reintroduced and increased in areas with the highest unaffordability for housing and “a new common-sense approach” will be taken towards the greenbelt requiring councils to review greenbelt boundaries and identify and prioritise lower quality ‘grey belt’ land.

Further changes include the introduction of five ‘golden rules’ for greenbelt development: brownfield first; grey belt second; affordable homes; boost public services and infrastructure; and improve genuine green spaces. Councils and developers will also need to give greater consideration to social rent when building new homes and local leaders will have greater powers to build “genuinely affordable” homes.

Unveiling the revised NPPF, deputy prime minister Angela Rayner said: “Today’s landmark overhaul will sweep away last year’s damaging changes and shake-up a broken planning system which caves into the blockers and obstructs the builders.

“I will not hesitate to do what it takes to build 1.5 million new homes over five years and deliver the biggest boost in social and affordable housebuilding in a generation. The question is where the homes and local services people expect are built, not whether they are built at all.”

Prime minister Keir Starmer said: “Reform is desperately needed if we are to build 1.5 million homes. Under the current planning framework just under one third of local authorities have adopted a local plan within the last five years and the number of homes granted planning permission had also been allowed to fall to its lowest level in a decade. That has to change.”

Responding to the announced changes, Melanie Leech, chief executive of the British Property Federation, said: “It’s very positive that the government has quickly recognised and responded to the fact that to drive economic growth and deliver a step change in housing delivery we need a planning system which is agile, fit for purpose, adequately resourced and, crucially, retains a plan-led approach at its core. The revised NPPF and other recent and mooted reforms go some way to addressing this, but more remains to be done.”

Paul Rickard, managing director of Pocket Living, added that “the measures around accelerating plan-making and increasing housing targets will make a significant difference at a national level”. However, he added: “Planning reform is not in itself going to ensure that these new homes are built.”

Dinny Shaw, head of planning at Places for People, agreed that more was needed if the government is to deliver the promised 1.5 million new homes. “Today’s new National Planning Policy Framework is the seismic change we need in planning and demonstrates that this is a government listening to the sector,” she said. “But new definitions and a brownfield first approach alone won’t help us meet the government’s self-proclaimed ambitious targets.”

Key revisions to the NPPF

• Councils will be told to play their part to meet housing need, with new immediate mandatory housing targets for councils to ramp up housebuilding and deliver growth across the country putting more money in working people’s pockets.
• Areas with the highest unaffordability for housing and greatest potential for growth will see housebuilding targets increase, while stronger action will ensure councils adopt up-to-date local plans or develop new plans that work for their communities.
• A new common-sense approach will be introduced to the greenbelt. While remaining committed to a brownfield first approach, the updated NPPF will require councils to review their greenbelt boundaries to meet targets, identifying and prioritising lower quality ‘grey belt’ land.
• Any development on greenbelt must meet strict requirements, via the new ‘golden rules’, which require developers to provide the necessary infrastructure for local communities, such as nurseries, GP surgeries and transport, as well as a premium level of social and affordable housing.
• To further tackle the housing crisis, councils and developers will also need to give greater consideration to social rent when building new homes and local leaders have greater powers to build genuinely affordable homes for those who need them most.

Industry responses in full

Melanie Leech

Chief executive, British Property Federation

 “It’s very positive that the government has quickly recognised and responded to the fact that to drive economic growth and deliver a step change in housing delivery we need a planning system which is agile, fit for purpose, adequately resourced and, crucially, retains a plan-led approach at its core. The revised NPPF and other recent and mooted reforms go some way to addressing this, but more remains to be done.

“While this new framework will help industry’s confidence to build more homes of all tenures, including build-to-rent and affordable homes, it must integrate with other emerging frameworks such as the industrial strategy and the national infrastructure plan to enhance economic growth. That we need to deliver housing is beyond doubt, but those homes and the communities require critical infrastructure, including logistics, and jobs to be economically sustainable.

“We urge that these revised housing targets align with employment space targets to create places where people can live and work. Going forward, government should build on this positive start by addressing other causes of subdued delivery rates, such as viability challenges, weaker than expected economic sentiment and market demand, and construction sector capacity.”

Tony Mulhall

Senior specialist, RICS 

“RICS welcomes the launch of the revised National Planning Policy Framework. The changes demonstrate that policymakers are willing to take a forward-thinking approach to overhauling planning policy in a bid to speed up the delivery of housing and infrastructure. To meet the 1.5 million-home target, Labour has rightly identified that the private sector will have a leading role to play in increasing output, which currently sits at just 221,070 net new homes a year, and have therefore introduced policies that de-risk development and provide certainty. This is of vital importance to investors and funders, who deem residential development as high-risk.

“The reintroduction of mandatory housing targets is also encouraging, as is the support for the review of greenbelt boundaries. The 50% affordable housing target on greenbelt land is a laudable target, but viability testing at plan making stage will remain necessary and should apply as currently conducted. Many low sales value areas will not support this target, so the need for flexibility remains essential to deliver more housing including more affordable.

“Ambitions for a Local Plan-led system, announced earlier this week, will be dependent on councils’ ability to update existing development plans. We estimate that up to three quarters of plans are currently out-of-date. Plans take time to consult on and update and also require significant resource, which we know planning departments are lacking in.”

James Blakey

Planning and engagement director, Moda Group

“The housing crisis is clear for all to see, and the government’s bold steps in the new NPPF to unlock quality home delivery are encouraging. Moda welcomes this ambition but urges swift, enforceable local action to deliver the desperately needed homes. The NPPF rightly highlights the build-to-rent sector’s role in providing professionally managed rental homes for diverse communities. With funding, expertise and enthusiasm ready, we are poised to create high-quality rental neighbourhoods to support the government’s Plan for Change.”

Richard Petty

Head of UK residential valuation, JLL

“Planning is a vital piece of the puzzle when it comes to addressing the housing supply challenge, but it can’t be treated in isolation from the wider industry and what it really needs to get anywhere near the government’s 1.5 million homes ambition. Three hundred extra planners will be welcome, but this represents fewer than one per council in England alone, never mind the rest of the UK. The £100m is a lot of money for 300 planners, so we can expect to see the bulk of that budget spent on consultants and technical studies. Ultimately planners don’t build anything. What is missing in the government’s approach is recognition that we need to replace the construction workforce through training and immigration – without builders, targets mean nothing.”

Tim Roberts

Chief executive, Henry Boot

“Henry Boot welcomes the revised National Planning Policy Framework as a step change in the supply of new homes at scale in England. We have already calculated that the updated NPPF will allow Henry Boot’s Hallam Land arm to submit applications for 10,000 residential plots and this change to planning policy is undoubtedly good news. We also support the measures announced in the government’s White Paper on Monday to simplify planning decision making through a national scheme of delegation to bring clarity and consistency over how applications get determined, the creation of dedicated planning committees for strategic sites and greater training for planning committee members.”

Victoria Du Croz

Head of planning, Forsters

“Labour sprang into action over the summer with the proposed revisions to the National Planning Policy Framework in an attempt to turbocharge new homes delivery. Yet today’s response to the NPPF consultation means that there is going to be ongoing ambiguity around what land is classified as ‘grey belt’. Despite an overwhelming consensus from the industry that greater specificity is needed over what land should be removed from the greenbelt and made available to development, the government has failed to provide this today, though has referenced that there will be further guidance around the grey belt definition in the New Year. Without increased clarity the definition of grey belt will be played out at appeal and in the courts, delaying planning applications and fundamentally delaying the provision of new homes. The transitional provisions in the NPPF are also going to make the government’s ambitious 1.5 million home target a challenge.

Paul Rickard

Managing director, Pocket Living

“The eagerly awaited NPPF is certainly a positive start and an early indication of the government’s determination to get more homes built. While we still believe that there is scope to go further on unlocking small brownfield sites through the introduction of a permission in principle regime for planning applications which are affordable housing policy compliant, the measures around accelerating plan-making and increasing housing targets will make a significant difference at a national level.

“However, planning reform is not in itself going to ensure that these new homes are built. That’s why the government now needs to deliver on creating an environment attractive for SME housebuilders to returning to what they do best, which is playing their role in meeting new local housing supply quickly. We need to see greater opportunities for SME developers through the release of public land with a prioritisation for local SMEs, and increased, targeted government support and flexibilities for the sector.”

Allisson Whittington

Head of housing and health, Zurich UK

“Increasing the supply of housing for those that need it most is always welcome. However, while we understand the government’s desire and need to increase the housing supply through an enhanced building programme, we would caution against rushing planning decisions and pressing local authorities to build on areas, such as floodplains, that might not be sustainable. We need to build resilient homes that we can be proud of in years to come and that will combat the rigours of everyday life, and if we rush the planning and development process now then this may cause problems in years to come. Housing associations already make a significant contribution to the delivery of the new housing supply despite having had their finances stretched over recent years, but they need the right support in place to enable them to continue to play their part in creating homes for all.”

Carolin Göhler FLI

President, Landscape Institute

“The Landscape Institute called on this government to take a strategic approach to planning reform, and the updated NPPF is a step in the right direction. But it does not go far enough as a tool to embed nature recovery and climate resilience into new developments. Engaging landscape professionals early within local planning authorities and the private sector will help to drive a holistic, joined up approach and implement the updated NPPF and new local plans to their best effect. Landscape professionals are essential for evaluating the multi-faceted nature of all new developments and ensuring that economic objectives are balanced alongside positive outcomes for people, place and nature.”

Dinny Shaw

Head of planning, Places for People

“Today’s new National Planning Policy Framework is the seismic change we need in planning and demonstrates that this is a government listening to the sector. The right framework is essential and the implementation of the grey belt definition is to be applauded, to help bring more sites into scope. But new definitions and a brownfield first approach alone won’t help us meet the government’s self-proclaimed ambitious targets. Now we need the right people with the right skills in local planning departments to turn these rules into more planning permissions so we can get these homes so urgently needed built.  We must keep this conversation going. For PfP, it’s not just about building homes, it’s about creating new thriving communities where people are connected to their neighbours, and nature and proud of the place they call home.”

Simon Vernon-Harcourt

Design & planning director, City & Country

“Today’s announcement of NPPF reforms reflects the government’s intention to treat the delivery of housing as a strategic planning matter. The time has come to renew the postwar definition of the green belt and modernise it for 21st century housing needs. Our country is suffering an acute and continued housing crisis, which demands a robust policy and decision-making environment if we are going to deliver on the 1.5 million homes over five years. Co-operation with local planning offices is obviously essential to achieving housing delivery, but often this subject matter is emotive and subjective opinion is given too much weight in planning approvals. The introduction of mandatory planning targets for local authorities will help to reduce some of this subjectivity.”

Craig Carson

Managing director, Barratt West London

“Today’s National Planning Policy Framework announcement underlines the government’s commitment to building 1.5 million new homes and tackling the housing crisis. It is vital that local authorities take responsibility for planning the homes their areas need. Mandatory targets introduced at pace, and increased in areas of highest unaffordability like London, will help provide the sites and certainty that developers need to deliver more homes over the long term.

“Unlocking additional land opportunities requires a new common-sense approach to defining potential areas of development, particularly in high-density urban areas. A clear definition of grey belt will ensure that low-quality land can be transformed into thriving new communities. Underpinning the National Planning Policy Framework must be a commitment to training, recruiting and empowering the planners we desperately need. Providing £100m to councils for support to update local plans on top of proposals to train 300 new planners is welcome, but we need to encourage and support more people into the planning profession.

Jonathan Parker

Development director, Pagabo

“There’s clear ambition with the new NPPF with increased housing targets and supercharging the planning system to promote growth. However, if the viability guidance on this isn’t expected until the Spring, there’s a clear risk of progress being stunted in the short-term. It’s hard to see how effective appraisals can be run before that guidance is in place, which will likely cause delays in bringing sites forward.

“£100m has been earmarked to go into supporting and increasing the capacity of the planning system, and we already knew that more planning officers will form part of that. They may make small gains here and there, but we’ll be watching with interest on how the investment improves processes and behaviours that will make real progress. After all, if it’s not done in a strategic way, then it’s just a very large pack of sticking plasters.

Michelle Quan

Director, Boyer

“It is both a surprise and a disappointment that paragraph 14, relating to Neighbourhood Plans, remains unchanged. Perhaps one of the few December 2023 changes which has survived the revisions. Many had thought this was an oversight in the consultation and expected to see the December 2023 changes which extended the protection of Neighbourhood Plans to a five-year period to be at least reduced back to two years or indeed deleted entirely to support the government’s housebuilding aspirations. It is surprising and seemingly inconsistent that the ‘localism’ agenda seems to remain (in paragraph 14) alongside the introduction of top-down housing targets and a wider shift towards strategic planning, which will ultimately see strategic decision making shift towards a new tier of regional governance. A seemingly missed opportunity to support the delivery of the 1.5 million new homes the government is targeting.”

Stephen Teagle

Chief executive, Countryside Partnerships (part of Vistry Group)

“Vistry welcomes the government’s drive to speed up the delivery of much-needed new homes. The updated National Planning Policy Framework builds on extensive work with government to enable the industry to help the government achieve its target of building 1.5 million homes over the course of this parliament. The focus on increasing housing supply, releasing low-quality green belt land and greater support for mixed tenure developments are all key to unlocking the housebuilding industry’s full potential. We stand ready to respond positively to the new framework and look forward to working with councils across the country to bring forward new planning applications, new homes and new communities.”

Sav Patel

Associate director, Lanpro

“On the face of it, with so many competing factors, the updated NPPF is a positive step towards trying to achieve the government’s growth targets. It certainly sends a clear message to LPAs that the need to meet housing targets, which was diluted by the previous version under the Conservatives. The NPPF has the bark, but does it or will it have the bite? That, without getting too pessimistic, is unknown. Many of the issues delaying building aren’t just planning-related: labour supply and skills, materials shortages and other external factors all have an impact. Much will depend on how LPAs deal with the changes and their political will.”

Peter Canavan

Partner, Carter Jonas (Oxford)

“The focus on delivery in the new NPPF is very welcomed, as is the return of the five-year housing land supply measure: there needs to be a consequence when plans don’t keep up with housing needs. On that point, I would really like to see a more specific sanction included in the ‘transition period’ – which for many plans has been increased from one month to three months (in to March 2025) – which  requires a review of all plans which are more than 20% behind the requirement set out in the new standard method, within two years, or else the new standard method will be used as the basis for calculating the five-year housing land supply from that two-year anniversary date. The Joint South Oxfordshire & Vale of White Horse Local Plan was submitted on 10 December (two days before the publication of the new NPPF) with significantly fewer homes than the new standard method, and it was only submitted in order to ‘beat’ the publication of the NPPF; the councils haven’t even finished consulting on the sustainability appraisal/appropriate assessment for the plan.”

Iain Painting

Planning director, Stantec

“Getting local plans right will be key – even more so in the context of a national scheme of delegation. Increased powers for officers should give greater certainty around decisions and reduce duplication, as well as avoid time and cost delays where the principle of development has already been agreed. For this to have a real impact we need effective and up-to-date local plans which provide sufficiently detailed allocations for commercial and infrastructure needs as well as housing. Not to mention well-resourced planning departments able to cope with the likely influx of applications. National development management policies should relieve some of the burden and enable local plans to focus on planning for growth and prosperity.”

Mark Booth

Co-founder, Hayfield Homes

“What we’ve seen so far is a good start but there’s still a risk that focusing on hitting those big numbers will sideline SME developers, who can swiftly address local demand. Defining what constitutes a small and medium sized site and setting targets for councils and local authorities to ensure a percentage of all local housing is built by these firms would be a welcome addition. Introducing a requirement that small parcels of land on big sites are delivered by SME developers would also help speed up delivery, while larger sites move through planning and consultation.”

Andy Hulme

Chief executive, The Hyde Group

“England is now in the grips of a national housing emergency. Hyde’s own research earlier this year found one in four people in England said they had delayed a major life decision, like starting a family, because of the housing crisis – this is equivalent to more than 14m people putting their lives on hold because of the shortage of homes. We welcome that the government is prepared to take difficult, but necessary, decisions to begin tackling the housing emergency. We support the government’s brave decision to release low-quality ‘grey belt’ land for housing while stipulating new ‘golden rules’ to ensure grey belt development delivers 15% more affordable housing than a council’s existing local affordable housing target.

“We also welcome the government’s wider proposals to reform the planning system, including the need for mandatory local plans and the reinstatement of local housing targets. However, the most acute housing problem in England is the steep long-term fall in the supply of social housing, which has fallen off a cliff over the past thirty years. It’s important to recognise that more government support is needed beyond these important changes to planning. To tackle the housing emergency, we need more grant funding to build more social homes and we need a more ambitious ten-year rent settlement that includes a fair approach to rent convergence.”

Brendan Geraghty

CEO, ARL

“The ARL welcomes the release of the revised National Planning Policy Framework today and the explicit reference to build-to-rent (BTR) as part of mixed tenure sites which the NPPF states that local planning authorities should support in delivering a sufficient supply of homes. Whilst the ARL welcomes the government’s commitment to “immediate mandatory housing targets for councils to ramp up housebuilding”, we are disappointed not to see targets set for purpose-built rental homes within future local plans nor specific policies on BTR housing being mandated in local plans.

“The ARL is pleased to see the need for councils and developers to “give greater consideration to social rent when building new homes” but as stated in our NPPF consultation submission, strongly suggest that targets for social rent within BTR schemes can be met through Discount Market Rent provision. The ARL also welcomes the NPPF requirement to ensure homes are high-quality and well-designed. Homes of high-quality, purposefully designed and built for rent, are one of the hallmarks of BTR, along with being affordable and secure, with the BTR Code of Practice – due to be launched in Q1 2025 – defining the standards to which the sector operates.”

Honor Barratt

CEO, Birchgrove

“We welcome the publication of the NPPF, which outlines how the government plans to overhaul the planning system to meet its target of achieving 1.5 million new homes. In addition to building more properties, we believe a crucial and sustainable part of the solution to the country’s housing crisis is making better use of the homes we already have. This country has a severe lack of housing suitable for people in later life. Senior housing needs to be moved up the agenda as it’s a key part of the solution to this country’s wider housing crisis. Two-thirds of over-65s have at least two empty spare bedrooms in their home, which equates to nine million empty bedrooms every night. A significant number of these people would move to smaller properties if more suitable senior living was widely available. This would free up many larger properties and have a knock-on effect on the entire housing market.”

Emelye Kenyon

Director and head of environmental services, Pick Everard

“Since the term was first brought into the conversation, there has been much discussion about what ‘grey belt’ land actually means, so it’s really pleasing to see the government providing better clarity on what land falls under this term in the new NPPF. That being said, the requirement to prove a development does not fundamentally undermine the purposes of the remaining green belt across the areas of the plan could prove difficult to overcome. So, there is still therefore a priority to be given to previously developed land in the first instance where brownfield land isn’t an option for the scheme in question.

“It does appear that this has been designed to ensure the protection of the wider green belt, but it is important to recognise it marks a significant step towards development being possible within the green belt. The hope remains that moving into the future, this planning reform meets that overall aim of progressing development forward in a way that creates positive transformation for communities, without impacting the natural spaces and biodiversity within the country’s green belt.”

Jo Streeten

Managing director, AECOM (Building + Places)

“Overall, the changes to the National Planning Policy Framework (NPPF) are a positive move, confirming many of the policies proposed in the earlier consultation. The commitment to accelerate housebuilding will be challenging in many areas, but the long-awaited redefinition of green belt land and introduction of the grey belt offers new flexibility for sustainable development close to urban centres. The renewed emphasis on infrastructure is particularly welcome, as streamlining the consenting process for critical projects will help unlock their wider environmental, economic and social benefits. Meaningful stakeholder engagement must be developed alongside these initiatives to ensure that developments are inclusive, sustainable, and aligned with community interests. We await further legalisation in the new year to speed up the delivery of green energy to enable the energy transition.”

Jason Lowes

Planning partner, Rapleys

“Giving councils strict deadlines for committing to local plans is important, as is the extension of those already in place by March 2025 to deliver homes for the next six years to ensure that they meet the targets outlined. Equally ensuring anything built on brownfield starts with a ‘yes’ will help albeit this presumption is no real move on from what was published in 2024, with detail on brownfield passports will come in 2025.

“There are some concerns – mainly that targets aren’t everything and merely by increasingly them and tweaking the assessment methods won’t necessarily deliver what the government is looking for. Need to do more to target housing where affordable pressures highest, directing development where housing pressures highest and housing least affordable (i.e. South East), although equally it must be recognised that the shortage of housing is a nationwide issue. Another core threat to this is still undoubtedly viability. Developers will be tasked with delivering more social rented housing and more infrastructure as part of planning, they may even be asked to pay higher planning fees but that doesn’t change the fact that viability is already constrained.

Ian Hambleton

Director, Biodiversity Units UK

“Keir Starmer’s comment about prioritising building homes over the environment feels like it’s stuck in the past. The idea that we have to pick between housing and nature just isn’t true anymore. Biodiversity net gain (BNG), a landmark policy supported across the political spectrum, ensures that development contributes a 10% net improvement in biodiversity. It’s not a barrier to progress – it’s a blueprint for a brighter future. This legislation provides a framework where housing developers can deliver the homes the UK so desperately needs while leaving nature better than they found it.

“The UK faces intertwined crises of housing and biodiversity loss. BNG ensures that every planning decision improves both, addressing urgent needs for homes while restoring our natural heritage. This is not just compliance; it’s an extraordinary opportunity to build communities where people and nature coexist and thrive. Developers should embrace this vision, not resist it. They can become champions of regeneration, demonstrating that building homes can go hand in hand with replacing and enhancing nature. With every brick laid, every tree planted, and every habitat restored, we can rewild Britain and house its people.”