Planning Reform: Here We Go Again
Introduction
The UK is in the midst of a severe housing crisis, with affordability at the heart of the issue. In response, the new Labour government has proposed Planning Reform to the National Planning Policy Framework (NPPF) to increase land availability for housing development. Their goal is clear: to build 1.5 million new homes, particularly in areas where housing is least affordable, while also promoting sustainability.
These reforms also pave the way for future planning changes focused on commercial and infrastructure development, with a promise of creating a comprehensive spatial development strategy across the UK.
Tackling Housing Needs: The 5-Year Land Supply
At the core of the government’s housing planning reform is the stricter enforcement of the 5-Year Housing Land Supply rule. While the idea of maintaining a five-year land supply isn’t new, councils have often managed to sidestep it. The proposed reforms will make it mandatory for local authorities to continuously demonstrate that enough land is available for new housing projects, with little to no exceptions.
Crucially, the way housing needs are calculated will change. Rather than relying on unpredictable projections, housing needs will now be tied to a percentage increase in existing housing stock. In regions where housing is most unaffordable, this percentage will be even higher. The theory is that by building more homes in high-cost areas, affordability will improve—but whether this will be enough to solve the crisis remains to be seen.
Expanding Land Supply: Brownfield and Grey Belt
To meet these new housing supply targets, the government plans to expand access to land for development. The “brownfield first” approach prioritises underused urban spaces that can be repurposed for housing, especially in high-demand areas. This is a positive step towards urban revitalisation, but it’s not enough to meet the growing demand for new homes.
This is where “Grey Belt” land comes in. The government has formalised this concept to refer to Green Belt land that is making a limited contribution to the purposes of the Green Belt, such as disused petrol stations or car parks. Local authorities will be able to unlock these sites if they can’t meet housing targets with brownfield land alone. However, expanding into Green Belt areas could provoke a backlash and may not yield the affordable development required to address the housing crisis. To try and mitigate this backlash and ensure affordability, the government are introducing a set of Golden Rules.
The Golden Rules for Development
The government has introduced “golden rules” to ensure that Grey Belt development benefits the public and doesn’t compromise on quality. These include:
- Affordable Housing: At least 50% of all Grey Belt developments must consist of affordable housing, including social rent options.
- Infrastructure: New developments must be supported by necessary infrastructure, from transport to schools and healthcare.
- Green Spaces: Public green spaces must be created or improved to maintain quality of life and environmental standards.
While these rules are a step in the right direction, their enforcement will rely on already overstretched local authorities.
Conclusion: Is The Planning Reform Enough?
The government’s reforms may help, but they likely won’t fix the root causes of the housing crisis. Making more land available doesn’t guarantee affordability, and developers could still find ways to bypass the golden rules. Land banking—where developers hold onto land to inflate its value—remains a major issue, with no clear solutions presented.
Without stronger measures, these reforms are likely to only scratch the surface of deeper, systemic problems in the housing market. Because of this, whether the government can truly deliver on their promises remains uncertain.
So, the question remains: will these reforms drive the transformative change needed, or will they simply be a new coat of paint on a crumbling foundation?
