How is Labour planning to support new home building?

The new Labour Government has already announced a number of specific plans to tackle the UK’s housing crisis. At the root of the problem is simply that not enough new and particularly affordable homes are being built, so Labour’s focus is twofold:

1. To make more sites available for development.
2. To simplify and streamline the planning approval process so that, once a suitable site has been identified, homes can be taken from design to completion much more quickly.

The party’s election manifesto pledged it would increase the Conservatives’ delivery target of 300,000 homes a year to 370,000 and specifically stated that 1.5m new homes would be developed within five years. But how does the Government intend to achieve that?

Labour’s Planning and Infrastructure Bill, which was announced in the King’s Speech last month, promises to: “simplify the consenting process for major infrastructure projects; improve local planning decision-making by modernising planning committees; and increase local planning authorities’ capacity.”

Here are four of the party’s key strategies to encourage and support the building of new homes:

1. Prioritising the regeneration of Brownfield sites

Brownfield land is previously developed sites that have been abandoned or underutilised. Labour has committed to prioritising the redevelopment of these sites and fast-tracking planning approval for new buildings.

As part of a wider urban regeneration drive, the party will work to ensure:

• There are integrated plans for housing, infrastructure and community facilities.
• Local communities are engaged and involved in the planning and implementation of these projects.
• There is a focus on mixed-use developments that will create jobs and help stimulate the local economy.

2. Green Belt reforms

While Labour is committed to protecting England’s Green Belt, which limits the expansion of cities into the countryside, it plans to target ‘grey belt’ land. This is land that falls under the current Green Belt remit but, rather than being unspoilt countryside, has already been used – so that’s sites like disused car parks or wasteland. More than 11,000 potential grey belt sites have already been identified that could deliver up to 200,000 new homes.

National Development Management Policies (NDMPs) will be introduced to govern and streamline development processes, with stringent criteria to ensure that any development on released Green Belt land significantly benefits the local community.

Any areas of high environmental value will also be preserved. As such, the Government has proposed five ‘golden rules’ that must apply to these developments:

1. At least 50% of the homes built must be affordable.
2. Developments must include new infrastructure and public services, such as schools and health centres.
3. There must be improvements to existing green spaces.
4. Projects must enhance the overall quality of the environment.
5. Developments must comply with sustainable building practices and aim to have a low carbon footprint.

3. Planning reforms

Local community engagement is going to be a key focus for Labour in its drive to streamline the planning process. It has pledged to give more power to local communities over how housing can be built in their area, through:

1. Holding regular public consultations to get their input on housing needs and priorities.
2. Establishing ‘community advisory boards’ that will work with planning authorities to set realistic housebuilding targets.
3. Seeking regular feedback from the community so that targets can be adjusted as and when needed.

And in terms of the planning and housing delivery process itself, Labour intends to:

• Streamline the planning application and approval processes, with a particular focus on encouraging small and medium-sized construction businesses (SMEs) into housing development.
• Simplify regulations and offer grants and tax breaks to developers that convert existing buildings and Brownfield sites into housing.
• Provide grants and loans for SMEs in the construction industry to help fund new housing projects.

4. Building New Towns

Following on from its manifesto pledge to build the next generation of ‘new towns’ in England – “new communities with beautiful homes, green spaces, reliable transport links and bustling high streets” - Labour has said that it will have selected some locations for these large-scale developments by the end of this year. The intention is that 40% of all new town housing will be affordable.

Of course, it will take some time to plan and build these brand-new communities, but they could provide good opportunities for investors, as well as homeowners.

If you would like to find out about new housing development plans and potential investment opportunities in your local area, get in touch with your local property experts at your nearest Reeds Rains branch.

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