So what is labour planning to do to kick start housing?

Labour is getting ready to fundamentally transform housing law. Perhaps it didn't seem like much was happening over the summer for Angela Rayner, but her team and civil servants have indeed been working the backroom hard. The result will be wave upon wave of consultation and proposals rolling out over the coming months. The Housing Minister has already hinted at the scale of the changes that will result. Plans have been announced to introduce a Renters' Rights Bill to prevent unjust eviction and excessive rent rises during tenancies. Meanwhile, the government has agreed that all discounts available under the ‘Right to Buy’ scheme will be reviewed.

The problem with right to buy

Introduced in 2012, discounts available under the ‘Right to Buy’ have according to most pundits reduced the available social housing stock volume. In answer to this Labour are now considered for reforms that will better protect the remaining housing stock and encourage the supply of affordable rented homes.

Leasehold reform:  what next?

Leasehold reform is also on the agenda. Labour plans to abolish unfair charges on private housing estates. These will be discussed in public consultations soon, along with protections outlined in the new Leasehold and Freehold Reform Act 2024.

National Planning Policy Framework: Major planning reform is afoot

All this takes place against the background of reforms to the National Planning Policy Framework. The new document was published in the run-up to parliamentary recess, and consultation has already begun. Its scope and speed suggest that the government is committed to change. The Consultation ran from 30/07/2024 – 24/09/2024 and focused on 10 objectives:

Revised Housing Targets

1. Revised Housing Targets

The government is pushing for the delivery of 370,000 new homes annually, a jump from the previous 300,000 target. This re-calibration of housing numbers, driven by a revised Standard Method, considers existing housing stock and local affordability. Notably, the previously contentious 30% urban uplift for certain cities has been scrapped, with a stronger focus on redistributing growth to regions like the Midlands and the North trying to encourage more balanced development across the country.

2. Reinstating the Five-Year Housing Land Supply (5YHLS)

The NPPF reintroduces the requirement for local authorities to demonstrate a five-year housing land supply, crucial for maintaining a robust pipeline of housing projects. A 5% buffer is added to ensure flexibility, with a 20% buffer for areas that have seen significant housing shortfalls. This reverses the 2023 move to a four-year supply rule.

3. Introducing 'Grey Belt' Development

The newly proposed 'Grey Belt' designation opens previously underutilized Green Belt land—areas deemed to have limited ecological value and that contribute minimally to the Green Belts five core functions. To be eligible, projects must offer 50% affordable housing and meet strict infrastructure needs.

4. Boosting Strategic Planning and Cross-boundary Collaboration

A renewed focus on strategic planning emphasizes cross-boundary collaboration between local councils, ensuring that large-scale housing and infrastructure projects are coordinated seamlessly. By aligning efforts across regions, the reforms aim to unlock broader national growth goals, ensuring infrastructure is delivered efficiently across local authority borders.

5. Maximizing Public Value from Development

These reforms aim to ensure that every new development delivers public benefits alongside housing. By leveraging powers such as compulsory purchase, authorities will be able to extract greater value from developers, ensuring that housing projects also bring with them essential infrastructure, transport links, and community benefits.

Prioritizing Affordable Housing

6. Prioritizing Affordable Housing

A stronger emphasis is placed on affordable housing, particularly focusing on Social Rent options. This is especially crucial in Grey Belt developments, where half of all new housing must meet affordability criteria. This reform reflects the government’s push to make home-ownership more accessible, especially for first-time buyers and lower-income households.

7. Supporting the Growth of Key Industries

To future-proof the economy, the NPPF includes measures to support the development of industries central to the modern economy, such as digital infrastructure, renewable energy, and advanced manufacturing. The reforms create space for commercial projects that drive economic growth, linking infrastructure development with strategic industrial objectives.

8. Fast-tracking Clean Energy Projects

To speed up the transition to a net-zero future, the NPPF proposes fast-tracking the approval process for renewable energy infrastructure. These changes aim to remove bureaucratic barriers, enabling quicker delivery of crucial green energy projects that will power homes and businesses.

9. Strengthened Local Plan Enforcement

The government introduces tougher measures to ensure that local councils adopt and adhere to local plans. If local authorities fail to implement their plans, the government will intervene to ensure housing and infrastructure projects proceed.

10. Streamlining Nationally Significant Infrastructure Projects (NSIP)

The draft NPPF proposes to streamline the approval process for Nationally Significant Infrastructure Projects (NSIP), particularly for clean energy and other critical infrastructure. This aims to significantly reduce approval

EPCs and energy targets under labour

But that is not all. Energy efficiency targets might get tougher, so affecting landlords and house builders.

Compulsory Purchase Orders and empty homes

Compulsory Purchase Orders might be dealt with, potentially affecting long-term empty homes. There might be provisions to alter the powers of Planning Committees to prevent obstruction to development.

Who will control housing targets in the future?

The English mayors will probably also get bigger control over housing targets and planning processes. Legislative moves, consultations, and devolved powers are all set for center stage in the coming months. Of course, tax changes will dominate headlines, but that is hardly the story on housing. Labour wants to leave its mark following years of indecision by the Tories. The party aspires to accomplish big achievements by 2029, so reform begins now. With everything on a plank, it's pretty obvious that this autumn will not be all quiet in the UK housing sector.