The new government, planning policy and challenges ahead

The Chancellor’s plans to ‘get Britain building again’ are very significant for the property sector and property investment, specifically.  The plans involve delivering jobs and 1.5 million new homes over the next parliament (a very challenging target) and the biggest increase in social and affordable housebuilding in a generation. 

The most notable of the planning reforms to be carried out over the next few weeks and months is the requirement that local planning authorities carry out strategic Green Belt boundary reviews, with a view to releasing some Green Belt, or 'Grey Belt' land for housing. There is no doubt that Green Belt development is critical to successfully addressing the housing crisis.

We look forward to further detail on how the so-called ‘Grey Belt’ might be defined, where it exists and how accessible it is. Furthermore, who will carry out the assessments and on what basis and what factors will determine Grey Belt suitable for development - from environmental considerations to sustainable transport and more.

Tough decisions

Labour has set out a bold and ambitious plan to deliver ‘towns of the future’ as a significant initiative to tackle the housing crisis but delivering 1.5 million homes is a very tough challenge, and we question whether or not this is achievable without buy-in from local planning authorities. The task of creating substantial new communities will inevitably mean utilising greenfield, or Green Belt land. The decision to reclassify low-quality areas of Green Belt land as Grey Belt is a necessary first step to release the most sustainably located land for new development. But it will be a controversial move that will inevitably face opposition from environmental groups and local residents, indeed some opposition MPs have already voiced concerns, and this will only increase as further details are released. Tough decisions like this will become common if the new government is to have any realistic hope of meeting its ambitious housing targets.

Will Grey Belt be recognised in planning law? As we know from the way in which the NPPF has been manipulated, whether to appease so-called NIMBYs or fast-track political priorities, something so significant would require legislation.  And new legislation requires thorough consultation and support across various stakeholder groups: it is no quick fix.

Level of opposition 

On the topic of local opposition, perhaps the most significant announcement in Rachel Reeves’ speech was her final comment regarding development: “We will not succumb to a status quo, which responds to the existence of trade-offs by always saying no and relegates the national interest below other priorities”.  We saw far too much acquiescence in the last government, much of it centred around greenfield / Green Belt land – but acquiescence is the path of least resistance: anything other can be challenging.

Don’t underestimate the level of opposition to development on agricultural and open land. Given Labour’s increased performance in rural areas across the Southeast, East Anglia, and the Midlands, new Labour MPs may find themselves in the position where many of their new constituents oppose development, creating some difficult choices.

Additionally, to substantially increase housebuilding requires not only a more efficient planning system, but also access to skilled labour, materials, and a strong market. A change in government is immediate but to make substantial changes across all aspect of planning and development requires a longer-term process of observation, consultation and implementation. I believe it is important that those of us in the sector are involved in what will at times be a challenging process. We have direct experience of the successes and failings of the past 14 years and before and are keen to make a positive contribution to get Britain building again.

The new Government’s initial announcements mark the start of a new, more positive approach to planning which is long overdue, just as local reviews of Green Belt land to enable the necessary housing are long overdue. But getting the first steps is vital to achieving success. Labour’s support at this election is broad but shallow, which will require a careful balancing act to deliver a significant uplift in new homes while at the same time doing it sensitively to minimise opposition.