Government Details Strategy for 1.5 Million New Homes in England

The government has presented its strategy to address England’s housing deficit, assigning specific new home construction targets to local councils. According to Housing Minister Matthew Pennycook, the initiative prioritizes regions where housing costs are highest relative to income. The objective is to construct 370,000 new homes annually across England, aiming to meet a government commitment of 1.5 million new homes over the coming five years. Local authorities have been instructed to grant building permissions to developers. Millions of individuals are unable to afford their initial home purchase, and a significant number of people reside in inadequate housing. Government data indicates that 1.3 million households are currently on social housing waiting lists, and a record figure, encompassing 160,000 children, are housed in temporary accommodation. The government, having unveiled its proposals within the revised National Planning Policy Framework, has not specified a timeline for achieving the 370,000 annual target. The government stated that areas experiencing the most severe housing unaffordability combined with the highest growth potential are assigned the most ambitious housebuilding targets. Pennycook informed the Commons that the government intends to be “focusing growth on city regions”. Among the cities slated for increased targets are St Albans, where the target is escalating from 885 under the preceding Conservative government to 1,660. In Oxford, the target is increasing from 762 to 1,087. The South East region collectively will receive an annual allocation of nearly 71,000, representing an approximate increase of 20,000. London’s overall annual quota is established at approximately 88,000, which is about 10,000 fewer than the target set by the previous Conservative government. Nevertheless, disparities exist within the capital, with certain areas receiving elevated targets. For instance, Kensington and Chelsea is mandated to construct 5,107 new homes, an increase from 1,381. The target for Westminster stands at 4,341, up from 1,862. Additional significant policy shifts have been announced: The government stated that previously developed land will be given precedence for new housing construction. These “brownfield sites” encompass locations such as disused industrial or commercial properties. However, Pennycook indicated that brownfield land alone would be insufficient to provide the required number of homes for the nation. Consequently, councils will also be directed to reassess green belt boundaries, originally established to curb urban expansion, by pinpointing lower-quality “grey belt” land suitable for development. The government has previously characterized the grey belt as “poor quality and ugly areas” within the green belt. A disused garage in Tottenham, north London, which was previously undevelopable due to its green belt designation, was cited as an illustrative case. Official statistics regarding the extent of the grey belt are unavailable. Nevertheless, research conducted by estate agent Knight Frank identified 11,000 previously developed sites, constituting less than 1% of the green belt. These sites were predominantly located in the south of England, with slightly over 40% situated within the London green belt area. Knight Frank estimated that between 100,000 and 200,000 new family homes could be constructed on grey belt sites. The prime minister affirmed that development would be locally driven, with land being developed in the order of “brownfield first, grey site next, and greenbelt last”. Kevin Hollinrake, the Conservative shadow housing secretary, commented: “This planning framework pushes development to rural areas, concreting over green belt, green fields and over our green and pleasant land.” In presenting its plans, the government stated that both councils and developers are required to prioritize social rent provisions in new home construction. It also indicated that local leaders would possess “greater powers to build genuinely affordable homes for those who need them most”. The definition of affordable homes encompasses properties available for sale under a shared-ownership scheme, those offered at a reduced rental rate, or those provided through a social housing agreement. The government specified that any development undertaken on green belt land must adhere to stringent criteria, obliging developers to furnish infrastructure for local communities, including facilities like nurseries, GP surgeries, and transport links. Prime Minister Keir Starmer declared that planning decisions would be enforced if required. He stated: “The starting point is local plans, and that’s really important for councils to develop the plan according to the target, taking into account local need, and working with developers. So that’s where it starts,” adding, “But are we going to push it though if those plans don’t work? Yes, yes we absolutely are.” Information obtained by the BBC through a Freedom of Information request indicates a potential conflict between the government and local authorities. The majority of councils voiced apprehension, with many expressing concerns that the targets fail to adequately consider pressures on local infrastructure, land scarcity, and insufficient capacity within the planning system and construction sector. The most recent report from the Construction Skills Network estimates a requirement for approximately 225,000 additional construction workers across the UK by 2027. Recent government statistics reveal that England has just under 700,000 empty and unfurnished residences. Among these, 261,471 are categorized as “long-term empty,” signifying vacancy for six months or longer. However, the revitalization of derelict and abandoned properties often entails a protracted and intricate process. Ascertaining ownership of properties that have remained vacant for years, or even decades in some instances, can prove difficult.