How Labour Plans to Solve the Housing Crisis
Labours new planning policy - The Labour government has made a bold commitment to tackling the housing crisis by pledging to build 1.5 million new homes during the lifetime of this parliament. But what does that mean for architects, urban planners, and the housing sector at large? Essentially, Labour is making it clear that housing is a priority—focusing not just on finance but also on planning reforms to encourage private investment and development.
Housing as a Driver for Economic Growth
Deputy Prime Minister and Secretary of State for Housing, Communities, and Local Government, Angela Rayner, has made it clear that Labour’s housing plan is also a strategy for economic growth. Rayner’s portfolio underscores the government's commitment to raising living standards and addressing the housing crisis through major policy reforms. In the first King’s Speech under Labour, the introduction of a Planning and Infrastructure Bill signalled a key shift in how housing and infrastructure are prioritized.
The Planning and Infrastructure Bill: What's to Come?
While we wait for the full details of the Planning and Infrastructure Bill, early signs suggest it will focus on breaking down barriers to building infrastructure, such as laboratories, data centres, and electricity grids, while also empowering local authorities to capture increases in land value. Rayner has also promised reforms to planning committees to streamline the process and allow for smoother development.
A significant part of Labour’s housing plan is the council house revolution, which could be fuelled by changes to borrowing rules for local authorities. In addition, the Homes England Affordable Homes Grant—with £7.39 billion in government funding aimed at building 130,000 homes outside London by 2026—will receive more flexibility under the new government.
The National Planning Policy Framework (NPPF) and Consultation
Key changes are underway in the National Planning Policy Framework (NPPF), which is now up for consultation. These revisions touch on topics such as the reintroduction of mandatory housing targets, the concept of the ‘grey belt’ (a designation for degraded greenbelt land), and the removal of the emphasis on ‘beauty’ in urban design.
One of the most notable elements is the return of mandatory housing targets—a key feature that had been softened under the previous government. These targets now aim to deliver 370,000 new homes annually, though Labour has admitted that the current output still falls short, with only 200,000 homes projected this year. The consultation also covers changes to how housing targets are calculated, focusing on local needs and housing affordability.
The Grey Belt: Unlocking Land for Development
Labour has committed to a "brownfield first" approach, promising to preserve greenbelt land while introducing the concept of a grey belt. This new designation applies to previously developed or low-quality land within the greenbelt. Labour hopes to develop rules that encourage building on such sites, with a significant stipulation—50% of housing on grey belt sites must be affordable. This has sparked debate about the viability of such developments, but Labour remains firm that developers will be held to high standards.
Additionally, local authorities struggling to meet housing targets may be required to review their greenbelt boundaries through their local plans, potentially unlocking more land for development.
Focus on Design Quality Over 'Beauty'
During the election, Labour faced some criticism for focusing on ‘beauty’ in their housing vision. However, the updated NPPF places more emphasis on well-designed and high-quality homes, rather than merely ‘beautiful’ ones. Design codes will still play a role, with the aim of ensuring that new developments contribute to creating vibrant, sustainable communities.
The Role of Section 106
Labour has decided to retain Section 106, a critical policy that mandates developers to contribute to affordable housing and social infrastructure in exchange for planning permission. In fact, nearly 47% of social housing in 2022/23 came from Section 106 agreements, and Labour is working to ensure local authorities have the resources to maximize these opportunities.
Rayner has also highlighted the need to bolster planning departments, with plans to recruit more planners to help local authorities navigate complex development challenges. Though the funding details are still being worked out, Labour’s plan appears to focus on empowering the public sector to get the best results from private sector developers.
The Challenges Ahead
While Labour’s housing agenda is ambitious, challenges remain. There are concerns about where funding will come from, particularly as Chancellor Rachel Reeves reevaluates commitments from the previous government. Yet Labour is optimistic that through a combination of public and private investment, along with strong planning reforms, they can make significant progress on the housing crisis.
In short, Labour’s strategy aims to address the housing crisis through a mix of targeted policy reforms, increased public investment, and a focus on quality, affordable homes. For architects, developers, and local authorities, these changes signal a busy and transformative period ahead.
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