Upon election in July 2024, the government moved quickly and formally announced that it would "get Britain building again", setting an ambitious target to deliver 1.5 million homes within its first term of parliament.
This announcement was especially welcomed as the UK is facing an acute housing crisis with a significant shortfall in the delivery of all types of housing. In addition, the government set a goal to determine at least 150 national infrastructure projects in this parliament. A growing population not only needs homes but also critical infrastructure. This holds significant opportunities for investors and developers.
In 2023, only 220,000 new homes were built and the number of planning permissions for housing fell to its lowest in a decade. The planning system has historically been seen as a key obstacle in the delivery of housing, and planning reform to speed up delivery has become a key focus for the government. These changes have the potential to create new opportunities for private investors, developers and landowners.
Some examples of notable steps taken in the first six months of the government's tenure include:
New National Planning Policy Framework (NPPF) . Consultation on and publication of a revised NPPF which, among other things, has restored mandatory housing targets, includes a requirement for local planning authorities to conduct green belt reviews, and where authorities fail to meet development needs, developers are now able to bring forward applications on the newly defined ‘grey belt’ land – provided a set of golden rules aimed to ensure delivery of up to 50 per cent affordable homes, appropriate local infrastructure and accessible green space are satisfied.
The new definition of grey belt is already encouraging more green belt development with several appeals already being decided positively. There are also signs that planning officers are becoming more comfortable with the new rules; for example, Basildon Council recently approved 250 homes on the Essex green belt after planning officers successfully argued that the land constituted grey belt land.
A development taskforce. A new taskforce has been set up to identify sites and deliver 10,000 homes on each site, which may present lucrative opportunities for large-scale private sector involvement in land acquisition and development.
Planning Practice Guidance (PPG). This consists of a flurry of revised sections of the government's PPG documents, including those on plan making, housing supply and delivery, housing and economic needs, and viability; with further updates expected. This could potentially influence investment strategies in both residential and mixed-use developments.
White paper on devolution (including strategic planning). The paper discusses the proposed introduction of spatial development strategies across the whole of the country by the end of this parliament, with which local plans will need to conform and will ultimately result in an English Devolution Bill. The main aim of devolution is to create combined authorities, devolving powers from national government to elected mayors. The aim is to push funds to the regions to provide services including strategic transport, thereby allowing decisions to be made locally with the hope that councils will be able to improve service delivery. This is a significant proposal to reorganise local government which has an essential role to play in the delivery of new housing and infrastructure.
Working paper on modernising planning committees. The government is hoping to increase efficiency, certainty and transparency in the planning application approval system by introducing a national scheme of delegation, introducing small committees dedicated to pursuing strategic development opportunities in applicable areas and introducing mandatory training for planning committee members to ensure consistent decision making. The aim is also to reduce decisions being refused only to be granted on appeal. The paper is inviting views from the industry on the proposed reform before issuing a formal consultation.
Planning reform working paper published on 26 January. This paper has recently been published, inviting views on further action the government could take to streamline the development of critical infrastructure, in particular, Nationally Significant Infrastructure Projects (NSIPSs). The paper focuses specifically on potential legislative changes to the Planning Act 2008, including introducing a requirement to review national policy statements on a more regular basis and making it easier to update them.
The working paper also commits the government to implementing the key recommendations of the Banner review by limiting the number of legal challenges that can be lodged. This is a key development for private wealth investors with stakes in infrastructure, energy and housing sectors, as these reforms should lead to faster project timelines and potentially higher returns.
Coming up
The government is not stopping there and there are a number of things to look forward to, including but not limited to:
A Planning and Infrastructure Bill. A new bill is expected to outline further changes to the planning system, including introducing a range of improvements to the national infrastructure consenting process with the hope that it will drive economic growth – which can only be good for landowners and developers. Angela Rayner has stated that the Bill is expected around March, so should land imminently.
National development management policies. These are intended to be consulted on in the spring and are focused on promoting new development in "high potential locations near transport hubs", which could alter the planning landscape, potentially creating new avenues for private investment.
Legislation for strategic planning. This may or may not be in the Planning and Infrastructure Bill and could present opportunities for developers to influence the long-term direction of housing development, among other things.
A new local plan system due to be in force by December 2026. The aim of the new local plan system is to make the plan, production and approval process much quicker than it currently is. We await details of the proposals.
At the budget, an additional £50 million was also committed to boosting capacity to deliver the planning reform agenda alongside an additional £500m in grants for affordable housing, and a further £3 billion of additional support to the private housing market. There can be no doubt of the government's commitment to planning reform in order to increase the delivery of housing and infrastructure which will in turn boost much needed economic growth.
To conclude
The sheer scale of the housing crisis will mean that it will inevitably take the government more than five years to achieve, but you cannot fail to be impressed by the government's desire to bring meaningful change to the sector. For investors and developers, this evolving landscape presents numerous opportunities, from land acquisition and development to investment in infrastructure projects that will support future growth.
In order to achieve the delivery of 1.5 million homes, as well as planning reform, we will need to see an improved economy, better resourced local planning authorities, investment in training and recruitment in the construction industry and perhaps some tax incentives for developers who are tasked with delivering essential housing and infrastructure but are struggling in this challenging economic environment.
This article was originally published by The Planner: https://www.theplanner.co.uk/2025/02/25/navigating-change-overview-current-and-forthcoming-planning-reform
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