National Planning Policy Framework out for an eight-week consultation

The redrafted National Planning Policy Framework (NPPF), out for an eight-week consultation, marks a significant shift in the UK government’s approach to housing policy. Key reforms include the reinstatement of mandatory housing targets for councils, adjustments to the green belt, and a renewed focus on delivering affordable housing, especially social rent homes. This overhaul reflects Labour’s ambition to build 1.5 million new homes during this parliamentary term.

Key Changes and Implications:

1. Mandatory Housing Targets:
   • The advisory nature of housing targets introduced by Michael Gove has been scrapped, with local authorities now required to meet housing needs based on standard methods. These targets are binding unless authorities can prove “hard constraints” such as flood risks.
   • The government aims for a yearly housing target of 370,000 homes, up from the previous 300,000, with 0.8% growth in housing stock across England and additional adjustments for unaffordable areas like London and the South East.
2. Green Belt and Grey Belt Reforms:
   • The draft NPPF facilitates green belt land releases where councils cannot meet housing needs through other means, encouraging developers to first consider grey belt land (previously developed or minimally contributing green belt land).
   • Developments on green belt land must follow “golden rules”, including providing at least 50% affordable housing and improving infrastructure and green spaces. Land value capture policies are also proposed to curb speculative land pricing.
3. Social Housing and Rental Needs:
   • There is a notable shift towards social rent homes, with new measures to increase their proportion in developments. Requirements for homeownership quotas in developments, such as First Homes, have been reduced or removed, allowing for more flexibility in focusing on rental housing.
4. Five-Year Plans and Strategic Planning:
   • Local authorities must maintain up-to-date local plans, with an emphasis on cross-boundary strategic planning to ensure housing needs are met in a coordinated manner. Those lagging in housing delivery will face heightened scrutiny and may be subject to government intervention.
   • A transition period allows councils to adopt current local plans with reduced housing targets, incentivising faster plan-making to limit the impact of new targets.

The proposed changes are aimed at resolving the UK’s housing crisis, boosting supply, and ensuring the delivery of affordable housing, particularly in areas with high demand. However, challenges remain, including regional disparities in development viability and questions over the practicality of some of these rules, especially in lower-demand regions. The consultation provides an opportunity for stakeholders to weigh in before these reforms are formalized.