The new Labour government wants to revolutionise the way the country builds its houses. But is it achievable? Let’s find out more.

After winning the General Election, the new Labour government has moved quickly to implement the housebuilding policies it promoted in its manifesto. The headline policy – to build 1.5 million new homes over the next five years – is extremely ambitious. After all, in most years, the country adds around 200,000 new homes to its housing stock. However, Labour claims it has a plan to achieve it.

In this article, we’ll look in more detail at the policy, how they intend to make it happen and the challenges they might face. While the number is large, it could happen, but only if everyone pulls in the same direction. 

The policy

The shake-up to housebuilding in England was announced by Housing Secretary Angela Rayner on July 30th 2024, less than a month after Labour’s General Election victory. The overarching goal is to build 1.5 million new homes during the next five years.

The first step was to change the National Planning Policy Framework to impose a new yearly target of 370,000 new homes built, with further annual targets for local councils regarding the number of homes they must build. For example, 38,000 new homes must now be built each year in the North-West of England.

The policy requires local councils to find areas where developers can build new homes. To achieve this, they will be allowed to reclaim brownfield sites and so-called greybelt sites. Greybelt sites are in protected greenbelt areas but are actually low-quality and useable, such as disused car parks and petrol stations.

How to do it

The way Labour plans to hit its target is two-fold: empowering councils to make better planning decisions, while making it easier for builders to build.

Councils will be required to identify brownfield and grey belt land for developers to build on. To help them, the government is prepared to fund more planning officers. They will also be allowed to double the cost of submitting a planning application to help cover the extra costs. 

However, with every carrot, there’s a stick. If councils are not hitting their targets and the government believes they are not working hard enough to identify new sites on which to build, housebuilding firms will be able to propose their own ideas for grey belt sites where they can develop.

New greybelt projects will be subject to specific rules around affordable housing (at least 50% of new homes must be affordable) and local infrastructure.

Challenges

Of course, almost doubling the number of new homes built in England every year will come with challenges. Here are some of the obstacles that planners and developers will need to navigate if they’re going to hit these targets:

• Public outcry – There will always be NIMBYs (Not In My Backyard) who will put pressure on their local authorities not to build on land near to them
• Resources – Ramping up housebuilding in this way will require more planners, building workers and materials. Supply chains will need to run more smoothly than they have done recently
• Profitability – Could large affordable housing requirements put off developers who see it eating into their profits?
• Infrastructure – New housing developments require new roads, schools, GP surgeries, etc. Who will build these?

Get England building again

So, are these ambitious targets achievable, or will they be abandoned like many previous national housebuilding initiatives? One thing is clear: if the country is going to hit these targets, the entire housebuilding industry must pull together in the same direction. Planners, housebuilders, even technology providers like clixifix®, must work together to ensure we can move fast and build safer, greener, more affordable homes for people who badly need them.

We’re up for the challenge – and can’t wait to get started.