United Kingdom

UK government reveals major planning overhaul to build 1.5 million homes

Synopsis

The UK government has launched a comprehensive overhaul of its planning system to tackle the housing crisis and build 1.5 million new homes in five years. The new strategy introduces mandatory housing targets for all councils in England and updates outdated planning methods. With only a third of councils having recent housing plans, the government will focus on brownfield sites and potentially reassess green belt land. The plan includes prioritising high-density urban development and supporting infrastructure projects, while aiming to increase affordable and social housing. Reforms also include changes to the Right to Buy scheme and upcoming investment details.

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The UK government has announced a major overhaul of the planning system to address the housing crisis and achieve its goal of building 1.5 million new homes over the next five years. This new strategy includes mandatory housing targets for all councils in England and a comprehensive update to the current planning methods.

Currently, only about a third of councils have a housing plan that is less than five years old. To address this, the government will enforce new, mandatory housing targets and update the calculation methods, which previously relied on outdated data. The updated approach aims to ensure that housing development is both appropriately located and scaled to the size of existing communities, with a focus on high-need areas.

A key aspect of the new plan is prioritising development on brownfield sites. The government has clarified that the default position should favour development on these sites and promote higher-density housing in urban areas. Additionally, councils may need to reassess their green belt land to meet housing targets, focusing on 'grey belt' land-such as unused land on the edges of settlements, old petrol stations, and car parks.

Local authorities that fail to keep their plans up to date or meet housing targets may see homebuilders proposing developments on grey belt land. However, land designated for environmental protection will remain safeguarded. Any development on green belt land will adhere to the government's 'golden rules,' which mandate that 50% of new homes be affordable and that infrastructure such as schools and healthcare facilities be included.

The government is also making efforts to support the development of key infrastructure projects like laboratories, gigafactories, and data centres. Additionally, there will be new measures to increase onshore wind and solar energy projects across the country.

In tandem with these reforms, the government aims to enhance the availability of affordable and social housing. Changes to the Right to Buy scheme will give councils more flexibility to reinvest funds into building and purchasing social homes. A review of increased discounts from 2012 will be conducted, with updates expected this Autumn.

Further details on government investment in social and affordable housing will be announced in the next spending review. This will help social housing providers plan and support a significant increase in affordable housing construction. The government will also ensure that councils and housing associations have the financial stability needed to invest in housing, while protecting current and future social housing tenants.

This overhaul reflects the government's commitment to addressing the housing shortage and ensuring that new developments meet the needs of communities across England.

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