The real estate industry has welcomed an announcement by the new UK government to push for the creation of 1.5m new homes over the next five years, by reinstating housing targets and potentially opening up parts of London’s ‘green belt’ to new development.
Today, Angela Rayner, deputy prime minister and housing minister, told Parliament that the government would be increasing previously suspended mandatory annual housing targets from 300,000 to 370,000 and would introduce changes to the National Planning Policy Framework (NPPF) that could make more areas in the green belt viable for construction, recategorising them as part of a ‘grey belt’.
Local authorities will also be expected to ensure they have up-to-date plans that can address the local need for homes.
Melanie Leech, CEO of the British Property Federation, said: “This is an ambitious package of proposed changes to make the current planning system work better while Labour develops plans for longer-term and more radical reform. These measures send a clear signal of intent to deliver more homes.
“We need a multi-tenure approach to tackle the chronic housing supply shortage which sees social and affordable housing, homes for sale, and build-to-rent firing on all cylinders. We are therefore particularly pleased to see that as part of the draft revised NPPF, government will double down on encouraging every part of the housing sector to play their full role in building the homes we need.”
Leech added: “The success of these proposed changes very much depends on local authorities and the government is right to focus on the importance of having up-to-date local development plans in place and delivering greater consistency in decision-making. Looking ahead to the Autumn Budget, the government must also ensure that the planning system has the necessary resources and skills to deliver.”
Justin Young, CEO of the Royal Institution of Chartered Surveyors, said: “Securing adequate homes for the UK requires more than one solution, and it is encouraging to see many of them addressed today. Setting localised housing targets to ensure that what is needed is built in the right places and with the right infrastructure, and working with local authorities that know their areas better than anyone, will help secure the bold ambitions of government as well as providing jobs and opportunities.”
Young added: “We have been calling for a greenbelt review, and applaud the introduction of clear, golden rules for grey belt. The proposed system of brown, grey, then green should protect community spaces and secure needed but not unnecessary development. Planning reforms are a pull-able policy lever for boosting economic productivity, and legislation that increases housing delivery across tenures, including affordable housing, will move the dial for those in need.”
Rick de Blaby, CEO of residential developer and operator Get Living, said: “Our deputy prime minister is right – there simply isn’t enough of the right homes being delivered in the UK right now to meet demand. An effective and efficient planning system is absolutely critical to providing much-needed homes for sale and rent and supporting vital infrastructure that meets the local need.
“For too long the planning system has been a drag on delivery, affecting both investor appetite and crippling supply in areas that desperately need new homes for sale and rent. The new government has recognised this and wasted no time in putting forward solutions. The country needs a simplified approach to planning that not only removes existing barriers, but has an expanded understanding of the types of homes, neighbourhoods and infrastructure needed.”
But Tim Roberts, CEO of developer Henry Boot, warned that targets had to be met. “Housing targets have been used previously and, whilst they have increased delivery during certain periods, they have fallen far short of achieving their intended targets,” he said.
“Setting targets does not alleviate the challenges of development. The government needs to ensure that green-belt reviews are carried out efficiently, planning officers are adequately trained and that the balance of affordable homes in new developments is correct, to ensure all cities are on a level playing field and targets have a realistic chance of being met.”
Ian Rickwood, CEO of Henley Investment Management, said: “The key issue is what happens if the authorities miss these targets. Will failing to meet the targets carry consequences, or penalties? Because until now this hasn’t happened.”
To read the latest IPE Real Assets magazine click here.
