UK Overhauls Planning System to Reach Ambitious 1.5mn Homes Target

The UK government has unveiled a major overhaul of its planning system to address the housing crisis and meet an ambitious target of building 1.5 million new homes within five years. Prime Minister Keir Starmer described the changes as essential for tackling the "chokehold" that the current planning process places on economic growth and housing availability.

In a statement on Thursday, Starmer emphasized the urgency of addressing the housing shortage, which he said has left homeownership out of reach for many working families. “Our plan will put builders first, overhaul the broken planning system, and ensure working families have roofs over their heads,” he said.

The reforms include:

• Mandatory housing targets to ensure construction in areas where housing is least affordable.
• A requirement for local authorities to devise housebuilding timetables within 12 weeks or face ministerial intervention.
• Prioritization of "brownfield" (previously developed) sites for construction.
• A review of green belt and “grey belt” land to identify areas suitable for development while preserving necessary infrastructure.

Local councils will receive £100 million ($127.6 million) in additional funding to support these initiatives.

The Local Government Association (LGA) welcomed the funding but stressed the need for a more collaborative approach. It noted that swifter planning decisions alone would not guarantee increased housebuilding, citing challenges such as construction costs and workforce shortages.

Business leaders, however, praised the move. The Confederation of British Industry (CBI) highlighted the potential for reforms to unlock private investment and drive economic growth. “A faster, more agile planning system can bolster the UK’s competitiveness and deliver on growth ambitions,” said Jordan Cummins, Interim Chief Policy and Campaigns Officer at the CBI.

The government reaffirmed its commitment to sustainable development, stating that green belt adjustments would be limited to low-quality land and coupled with infrastructure improvements. This approach aims to balance environmental concerns with the need for expanded housing.

The reforms are part of a broader strategy to stimulate the economy by addressing critical housing needs. By prioritizing areas with the greatest demand and reducing bureaucratic delays, the government hopes to make homeownership more attainable while boosting construction-related jobs and investment.

While the reforms have been widely welcomed, questions remain about implementation. Addressing workforce shortages and rising construction costs will be crucial to achieving the target. Additionally, collaboration between local authorities and the government will play a key role in ensuring the success of the new policies.