On Wednesday 20th November, the Housing, Communities and Local Government (HCLG) Committee convened to scrutinise the Government’s pledge to deliver 1.5 million new homes by the end of this Parliament. Matthew Pennycook MP, Minister of Housing and Planning, and Joanna Key, Director General for Regeneration, Housing and Planning at MHCLG, answered detailed questions on the feasibility of this ambitious goal. They also addressed proposed reforms to the National Planning Policy Framework (NPPF) and Labour’s plans for developing Green and ‘Grey’ Belt areas.
(Source: UK Government)
1.5 Million New Homes
The government has pledged to deliver 1.5 million new homes over the next five years, requiring the construction of 300,000 net homes per year. Historically, previous governments have only managed to deliver around 240,000 homes annually, making this new target particularly ambitious. Despite this, Pennycook expressed confidence that it is not only achievable but essential to tackling the UK's long-standing housing crisis.
Pennycook highlighted that the government has already taken significant steps, introducing comprehensive reforms to planning policy. These reforms include changes to the National Planning Policy Framework (NPPF) and the creation of a New Homes Accelerator and task force. These initiatives are designed to give local councils and housing associations the flexibility and support needed to increase the supply of affordable homes.
Strategic Approach and Progress Monitoring
One key feature of the government’s approach is its decision not to set interim annual targets for housebuilding. Instead, Labour plans to focus on achieving the overall target by the end of the parliamentary term, recognising that housebuilding is likely to be slower in the initial years of governance before accelerating later on. Instead, progress will be measured through a variety of indicators, including planning permissions and net completions, as well as other metrics like levels of temporary accommodation.
Pennycook indicated that a clearer picture of the government’s trajectory toward the 1.5 million homes target will emerge following the 2025 Multi-year Spending Review. This review will provide crucial information on the level of government investment in social and affordable housing, which will be a major factor in achieving the housing goal.
Addressing Barriers to Housing Delivery
A significant part of the discussion centred around the various barriers that have historically slowed the delivery of large housing projects. Key challenges include gaps in funding, insufficient planning capacity at the local level, a lack of resources within local planning authorities and delays in responses from statutory consultees. The government aims to address these issues through new initiatives and by allocating additional resources to local planning departments.
The Director General also announced that £46 million will be allocated to councils over the next two years to enhance planning and design capacity, specifically targeting planning departments. This investment is expected to help local authorities manage the increased volume of housing developments and streamline the planning process.
Reforming Housing Needs Assessments
The committee also discussed changes to the standard method for assessing housing needs. Under Labour’s revised approach, the government has set a target of 370,000 homes per year based on a stock-based model. This method requires every area to grow by at least 0.8% to meet housing demand, with aims to correct the previous method's reliance on outdated population figures and ensure housing growth is aligned with actual demand.
Pennycook also highlighted flaws in the previous government's approach, such as the arbitrary 35% urban uplift applied to the 25 most populous cities and urban centres. He noted that this uplift, especially in London, was unrealistic and disconnected from what these areas could feasibly deliver. Under the new method, London’s housing target has been revised to a more attainable 81,000 homes, a figure that, while challenging, is considered more realistic.
Local Plans and Brownfield Sites
The committee emphasised the importance of ensuring all local authorities have up-to-date Local Plans. The government made it clear that it will intervene if councils fail to bring forward these plans, which are essential to meeting housing targets. In addition, while there remains a focus on developing brownfield sites first, Pennycook acknowledged that there are not enough viable brownfield sites to meet the full housing need. As a result, local authorities are being encouraged to strategically release "Grey Belt" land where necessary, particularly when brownfield sites are insufficient.
Furthermore, the government is promoting cross-boundary cooperation between local authorities to ensure housing needs are met across regions, rather than being restricted by local boundaries.
The Role of Empty Homes and Affordable Housing
The issue of empty homes was also addressed during the session. While empty homes are an important tool in increasing housing supply, Pennycook acknowledged that they are not a standalone solution to the housing crisis. Local authorities already have financial incentives and powers to bring these properties back into use, but a more comprehensive approach may be needed to meet the overall housing target.
Finally, the committee discussed the government's focus on affordable housing. Pennycook reaffirmed the importance of councils and housing associations playing a greater role in delivering affordable homes. The upcoming 2025 Multiyear Spending Review will provide further clarity on the level of government investment in this area, which is expected to significantly contribute to meeting the housing target.
Closing Thoughts
The HCLG Committee’s meeting highlighted both the scale of the government’s ambition and the complexity of the housing challenge. With plans in place to reform the planning system, address barriers to development, and increase investment in affordable housing, the government believes that the target of 1.5 million homes by the end of the Parliament is within reach. However, achieving this goal will depend on the successful implementation of these reforms and continued progress in overcoming the obstacles that have historically slowed housing delivery.
Stay tuned for updates on the National Planning Policy Framework (NPPF) expected in December, which will be crucial to understanding the direction of these reforms.
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At Bluestone Planning, we specialise in helping clients secure planning permission for brownfield developments and urban regeneration projects, as well as guiding our clients through the evolving landscape of planning frameworks. With the latest reforms our team is here to help you navigate these changes. We will ensure your projects align with both local and national planning objectives and seize new opportunities created by government initiatives. Whether you're looking to develop underutilised sites or optimise urban land use, we provide expert advice on how upcoming policies may impact your plans.
For more information on how we can support your development projects and help you make the most of the government’s strategy, contact us at Bluestone Planning by calling +44 1235 766825 or email admin@bluestoneplanning.co.uk
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