On 30th July, new Deputy PM Angela Rayner outlined the new Labour government’s long-term housing strategy, aimed at transforming the UK housing market.
In her parliamentary address, Rayner announced that under Labour, local housing targets would be mandatory. Local authorities will be tasked with planning for housing that is proportional to the size of existing communities, including adjustments where house prices significantly exceed local incomes.
The national target for new housing has been increased from 300,000 to 370,000 annually, with London expected to produce 80,000 of these homes.
“Some will say a total of 370,000 is not enough, to this I say: ambition is critical, but we also need to be realistic,” said Rayner.
She urged local authorities to reassess their greenbelt areas to meet housing targets, prioritizing the use of “low quality ‘grey belt’ land.” Additionally, for green belt developments, at least 50% must consist of affordable housing with an emphasis on social rented accommodation.
Further details of the Planning and Infrastructure Bill were provided, including:
· Reforms of planning committees;
· Changes to compulsory purchase compensation rules to ensure fairness to landowners;
· A streamlined process for critical infrastructure; and
· Empowering local authorities to base their planning departments on sustainable principles.
Rayner also committed to reducing constant changes and disruption in planning policy, setting clearer expectations for local plans, and increasing the direct involvement of residents in planning decisions.
Announcing plans to enhance social housing, Rayner declared, “I am announcing immediate steps for the biggest boost to social and affordable housing in a generation,” promising flexibility in the Affordable Homes Programme with Homes England, and accelerating details of future government investment at the Spending Review.
Changes to Right to Buy were also announced: the government has begun reviewing the increased discounts introduced in 2012 and is enhancing flexibilities for councils using Right to Buy receipts. Potential further reforms to Right to Buy may be introduced in the autumn.
Meanwhile, £450m from the Local Authority Housing Fund will be allocated to local councils to provide 2,000 new homes.
A key pledge in the Labour Party manifesto was to deliver 1.5 million homes over the next parliament, with planning reform at its core. In one of her initial speeches as Chancellor, Rachel Reeves identified “decisive reform” in the UK’s planning system as essential to this goal.
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