Rachel Reeves has pledged to reform the National Planning Policy Framework (NPPF) and restore mandatory housing targets as part of a range of measures to “get Britain building”.
In her first major speech as chancellor, Reeves said: ”There is no time to waste, that is why within 72 hours I am here announcing a whole range of measures in housing, energy infrastructure and more widely.”
“This Labour government has been elected on a mandate to get things done and get Britain building,” she continued. “With these steps we have done more to unblock the planning system in the last 72 hours than the last government did in 14 years.”
Reeves said Labour would reform the NPPF and would set out new policy interventions for critical infrastructure in the coming months. It would also provide the funding for 300 additional planning officers to support the planning system.
She added deputy prime minister Angela Rayner would write to local councils and planning authorities and ask them to review green belt boundaries and ensure they are prioritising brownfield and ‘grey belt’ land to meet housing targets.
She confirmed mandatory housing targets would be reintroduced to ensure 1.5 million new homes will be built in England over the next five years and said the government’s new “golden rules” would allow it to deliver “thousands more homes”, including social housing.
“We can’t build overnight, but that’s why we have set out today the initial steps that we are going to take to unlock private sector investments to build those homes,” she added.
Reeves also confirmed the government was removing the de facto ban on new onshore wind projects by deleting two footnotes to the NPPF, which means onshore wind projects are now on an even footing with other forms of infrastructure.
Industry response
Melanie Leech
Chief executive, British Property Federation
“It’s very positive to see the new government hit the ground running on planning reform. Housebuilding targets are a clear statement of intent and will help accelerate delivery. We need to build more homes of all tenure and type and so we urge the government to also consider bold targets for build-to-rent and affordable housing specifically. Housebuilding targets need to be supported with extra capacity in the planning system, so it’s good to see Labour also restate their commitment to get more planners in. The government is right to look at all options to drive development for growth and the delivery of homes. Moves to fast-track brownfield development are critical to regeneration across the country and a review of the green belt will help to identify those sites which can be brought into use for homes whilst continuing to protect the green spaces which we all enjoy.”
Paul Rickard
Managing director, Pocket Living
“Today’s speech by the new chancellor is a welcome first step in ending the housing delivery crisis blighting the lives of millions of people and especially those looking to get onto the property ladder. The restoration of national housing targets will help focus the minds of local authority decision-making, and we are pleased that a more permissive planning regime for brownfield sites is being developed. However, whilst significant, planning reform alone is not enough to deliver the homes we need and we look forward to a comprehensive agenda coming forward around public-private delivery partnerships, support for SME developers to get building again, and a strong focus on boosting the capacity of the construction sector.”
Colin Brown
Head of planning and development, Carter Jonas
“The change in tone and narrative from the new Labour government is both welcome and refreshing. However, it is early days for the administration, and we will need to see a lot more detail on how they intend to implement these changes so that delivery is realised on the ground. The scale of the challenge is huge – to achieve 1.5m new homes in the new parliament will involve rates of housebuilding not seen for decades and one cannot simply ‘turn the tap on’ and expect houses to magically appear. The government will need to pull multiple levers and act decisively to secure real transformative change. Central to this will be to grapple with the thorny issue of development in green belt locations and to also address the undoubted skills and labour shortages which have the potential to derail their programme.”
James Dunne
Head of operational real estate, abrdn
“We welcome any changes that help facilitate desperately needed further investment into the UK housing market. It is universally accepted that planning reform is necessary, and changes to policy to ensure that the optimum number of quality and sustainable homes is delivered in the most appropriate locations should be at the forefront of proposals. Continuity and certainty are fundamental requirements for significant investment and, given the strength of the mandate that the new government has, we would hope that long term frameworks and plans are put in place.”
Simon Vernon-Harcourt
Design and planning director, City & Country
“Chancellor Rachel Reeves’s proposal to recruit new planning officers and unblock parts of the planning system is a welcomed change that the industry so desperately needs. As it stands, reports and information crawl through the system due to the lack of resources. While this is a strong place to start and should be a key priority, proactive and pragmatic officers must be appointed who can deal sensibly with issues.”
Lawrence Turner
Director, Boyer
“One of the key announcements made by the vhancellor was the promise of funding for 300 additional planning officers to support the planning system. While we support this, even greater investment is needed in local planning authorities, which is crucial to ensure the necessary resources are in place to deliver on the government’s housing targets. Additionally, the commitment to direct intervention by ministers in planning decisions provides a strong signal to local authorities that the benefits of development will be important material considerations in the determination of development proposals. This will be a key short-term measure to drive development forward.”
William Nichols
Regional firector, Lanpro
“Today, marks a start of a new, more positive approach to planning which is long overdue. However, we don’t underestimate the level of opposition to development, and given Labour’s strong performance in areas like the Home Counties, new Labour MPs may find themselves in the position where many of their new constituents oppose development, creating some difficult choices. The rate of delivery will also require a sensitive balancing act. Increasing housing, and with it, the necessary infrastructure – from transport and energy solutions to community infrastructure and amenities – is undoubtedly an urgent priority. But it would be wrong to implement planning reform in haste. Many of these increases in housebuilding are not simply reliant on a more efficient planning system, they also require skilled labour, materials, and a strong market.”
John Glenton
Executive director, Riverside
“Currently more than 54,000 acres of green belt land is classified as contaminated land providing enough space to build more than one million homes. No-one wants to see high-quality green belt land built upon but we need to stop treating contaminated and low-quality green belt land as if it’s the height of Helvellyn, although planning reform comes with its own set of challenges and might be as gruelling as climbing a mountain. However, planning reform alone is not enough – as public finances improve the government must also provide significant grant funding to deliver the social homes we need.”
Michelle Walsh
Head of intermediaries, Together
“Reeves’ first major speech set out the initial steps for housing with 14,000 new homes spread out across England. It may be early days but should they restore mandatory housing targets, we should still see the property market remaining stable and even improving, but to achieve such ambitious numbers there needs to be real change. Relaxing planning restrictions and reviewing the greenbelt to address brownfield land and develop the less attractive ‘grey belt of Britain’ via the new draft National Planning Policy Framework in August will help remove red tape to unlock greater opportunities for developers, and in turn homebuyers. A commitment to ‘get Britain building’, deliver on infrastructure and housing is positive, however only time will tell how much this new government will be able to bolster significant growth in the UK economy.”
Andy Hulme
Chief executive, The Hyde Group
“The reintroduction of local housing targets is an important step if the government is to meet its target of delivering 1.5m new homes. Local targets ensure councils make a commitment to deliver new homes, and also help to identify where new homes are needed most and where these homes can physically be delivered in local areas. We look forward to seeing more detail on the specific planning policy changes to support sustainable development of affordable homes, but welcome the overriding message that this government is going to back communities that are crying out for new affordable homes. It’s essential that these welcome reforms are accompanied by a clear commitment to a long term rent settlement for social housing providers, to provide the resources and capacity for not-for-profit charities to play our part in building these new homes and continuing to invest in the homes we already provide.”
Mark Buddle
Head of residential development, Bidwells
“Restoring mandatory targets alone will not be enough to solve the housing crisis. While it is a positive step, it will only be effective if a wider policy environment is far more supportive of development than it has been in the past. Labour is making the right noises around this, through whether they will be able to deliver on their 1.5 million target will depend on how forcefully they reform Britain’s sclerotic, overly localised planning system.”
Daniel Austin
CEO and co-founder, ASK Partners
“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. Reinvigorating SME 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. Independent decision-making and private sector assistance can expedite approvals and reduce costs. Prioritising social housing and incentivising brownfield developments are essential steps toward sustainable growth. Lenders must offer flexible financing to smaller developers. Despite potential temporary unpopularity, a steadfast commitment to a pro-growth agenda is necessary.”
Amit Sharma
Real estate partner, Excello Law
“I’m sure many in the real estate sector welcome a reform to the planning system however caution should be exercised because of the fact that any rushed legislation (the recent Building Safety Act and the like being a prime example of badly drafted law) may create more problems than it serves to resolve. In my opinion, planning has become too political in the way that certain things are done at the local level and there has to be clear balance between competing interests in residential development. While there is plenty of space in the United Kingdom the question has to be is there plenty of room for infrastructure to cope for further development and it is these considerations that need to be properly balanced. Planning has to be now brought into the 21st century in terms of ease and speed to meet the demands society is placing on the various uses and developments in the country.”
Jason Honeyman
CEO, Bellway
“We welcome the announcement from the chancellor this morning on Labour’s plans for reforming the UK’s planning system and reintroducing mandatory housebuilding targets. The ability of housebuilders to deliver new homes ultimately relies on having a planning system in place that is efficient, effective and adequately resourced. In recent years, the challenges with the planning system has acted as a significant barrier to our sector. Bellway is committed to continuing to work closely with the new government and local authorities to help as many people as possible realise their home ownership ambitions.
Claire Fallows
Partner and head of planning, Charles Russell Speechlys,
“Commitment to delivering significant numbers of new homes and the support for new energy and infrastructure projects is welcome, as is the call to local planning authorities to review their green belt boundaries, which should allow some sensible sites to be released for development. But what’s really needed is a change in mindset across the country, driven by strong central action. It is helpful that the government acknowledge the important role that ministers have in using their own powers for direct intervention in this regard. While some balanced planning reform is welcome, this can also be a diversion. Not all of the blame can be placed on the ‘system’. Crucially, we need better funding and resourcing throughout the planning system and so the commitment to the appointment of more planning officers is welcomed, provided the roles can be filled. We also need more investment into statutory authorities who are consultees on applications, and into the appeal system to ensure timely appeal decisions. Finally, mechanisms to enable registered providers to fund the acquisition of more affordable housing must be part of the solution to the UK’s housing crisis.”
Rick de Blaby
Chief executive, Get Living
“Chancellor Rachel Reeves has wasted no time in setting out her stall for tackling the UK’s housing crisis. We welcome the steps already being put in place to allow the industry to deliver sought-after homes at a far greater speed, and unlock significant projects that, to date, have been hindered by a planning system that is quite simply not fit for purpose. At Get Living, we echo the chancellor’s views that the UK is a place where people should want to do business. If we are going to have any chance at making a meaningful dent in the housing crisis, attracting significant levels of private capital is essential. Recent estimations suggest £250bn worth of global capital is needed over the next seven years for rental housing alone. The build-to-rent industry, backed by long-term investors, has an important role in making this happen, bringing forward not only the market rental homes that are in such high demand, but also significant levels of affordable homes. With close collaboration from investors, the private sector and a proactive government, there is no reason why we shouldn’t get Britain building again across all tenures, ensuring that more people are able to enjoy a better quality of life here in the UK. We look forward to seeing these plans develop at speed.
Iain Painting
Planning director, Stantec
“The chancellor on the first full day of a new government placed planning reform at the very centre of her agenda – a clear signal of how serious Labour is likely to be around changing the system and encouraging new development of everything from houses to wind turbines and data centres. This is welcome, but is just the very first step. We will need to see how quickly and in what way this statement of intent filters down to local decision-making. The chancellor has started by ‘clearing the in-tray’ – calling in major projects, using schemes already in the system to demonstrate action as well as words. Bring it on. But we also need the actual policy statements sooner rather than later – as there is a risk that any gap between statement and action temporarily paralyses the process as decision-makers await clarity.
Terry Woodley
MD of development finance, Shawbrook
“The new chancellor’s speech to the treasury should ignite optimism among developers about reversing the decline in housebuilding numbers. The UK’s housing shortage demands urgent action, and it’s reassuring to see this issue high on the new government’s agenda. Lack of support for first-time buyers and stringent planning restrictions have stifled activity and pushed developers to demand legislative changes. Labour’s plans to build on the ‘grey belt’ and tackle the ‘NIMBY’ issue are promising steps forward. The most promising news for developers is the plan to streamline planning processes, which over a third (35%) identified as a priority in Shawbrook’s recent research. Many will be watching closely to see how these plans unfold. This could mark the beginning of a strong, comprehensive strategy to address the housing crisis and drive real progress in the near future.”
Will Edmonds
Partner and head of the housing and land planning team, Montagu Evans
“The strength of the new government’s majority and the significance it places on housing and planning are noteworthy. There will still be complicating factors, particularly at a local authority level where political control is more varied. Incentives will be needed alongside tighter controls and better funding to deliver greater resourcing at local authority level is essential. The new government will have to tackle these points quickly if it wants to see better housing and more construction become the political legacy it can use in the next election.”
Clive Docwra
Managing director, McBains
“Labour isn’t the first government to say it will reform the planning system. However, every previous government has singularly failed on this front because the planning system generally is overly bureaucratic with housing and other sectors struggling to get timely decisions. One area where Labour could go further is addressing the problem of planning officers’ time often being tied up with minor applications for house improvements, which means less capacity for them to focus on larger applications. Labour’s pledge to recruit an additional 300 planning officers to increase the rate of planning permissions is unlikely to fill this void, so an option would be to outsource parts of the planning process. This wouldn’t be an entirely new concept: for building regulations the approved inspector role was privatised, so the same could happen for the planning process right up to committee stage. This would mean the private sector carrying out procedural functions – processing applications, putting noticeboards up around sites, writing notes for the planning committee and setting out the positions available to applicants – leaving planning officers free to deal with strategy and policy. The elected planning committee would continue to act as gatekeeper by considering applications once brought to committee. In fact, some years ago, for example, Westminster City Council used three staff directly paid for by developers to speed up reserved matters applications.
Alex Groot
Project director, M3 Consulting
