Hundreds of thousands of new homes will be built under the biggest housebuilding surge in a generation thanks to the most significant rewrite of planning rules in more than a decade.
Having already reversed anti-supply measures in the National Planning Policy Framework (NPPF) last year, the government is going further to make the system clearer, more predictable, and faster to build 1.5 million new homes over this Parliament.
New changes will help optimise land use through well-designed, higher-density development, simplified biodiversity rules for smaller sites – and fast-track good housing projects that meet national standards for energy efficiency.
With families and children stuck in temporary accommodation and young people locked out of homeownership, the only way to start fixing this for good is to build thousands more good-quality homes in every region.
And the proposals directly build on the immediate and urgent steps already taken to fix a planning system that too often has blocked rather than built. Key revisions include:
- A default ‘yes’ to suitable homes being built around rail stations, alongside minimum housing density rules.
- Providing the same ‘yes’ to new homes building upwards in towns and cities, fast-tracking development schemes that meet high standards for well-designed homes.
- Making it easier for developers – particularly SME builders – to build higher density housing, such as modern apartments and flats, on smaller sites and under-used land where appropriate.
- The new ‘medium site’ category for sites between 10 to 49 homes so SME builders face proportionate rules and costs for their site size – including considering a possible exemption from the Building Safety Levy.
- Streamlining standards on energy efficiency and Biodiversity Net Gain to give builders certainty on plans for new homes.
- Encouraging a more diverse mix of housing, such as rural affordable homes and accessible homes for older people and those with disabilities, providing certainty for developers to meet the housing need of every group across local communities.
- New builds to include nature-friendly features, such as installing swift bricks, to support wildlife – adding little to building costs whilst delivering a win-win for nature and housebuilding.
- Preferential treatment for developments that strengthen local economies and provide new services, including shops, leisure facilities, and food production.
These measures will pave the way for a stable, rules-based system where developments that meet clear standards can move quickly from plans to construction – the most significant rewrite of national planning policy in over a decade. The new rail and densification policies are expected to unlock a potential 1.8 million homes in the coming years and decades.
To ensure these changes make an immediate difference, the government is proposing that they effectively override conflicting policies from day one, so everyone is working from the same rule book.
This is another major step forward in the government’s unrelenting focus to build 1.5 million high-quality homes, create jobs, and bolster clean, homegrown energy in every corner of the country – tackling record-high housing waiting lists and supporting the dream of homeownership for working families.
Housing Secretary Steve Reed said: “Right now we see a planning system that still isn’t working well enough. A system saying ‘no’ more often than it says ‘yes’ and that favours obstructing instead of building.
“It has real-world consequences for those aspiring to own a home of their own and those hoping to escape so-called temporary accommodation – we owe it to the people of this country to do everything within our power to build the homes they deserve.
“We’ve already laid the groundwork to get Britain building but our planning overhaul was only the first step to fix the housing crisis we face. And today I’m going further than ever before to hit 1.5 million homes and place the key to homeownership into the hands of thousands more hardworking people and families.”
Chancellor of the Exchequer, Rachel Reeves said: “For too long our economy has been held back by a housing system that slows growth, frustrates business, and prices the next generation out of a secure home.
“These reforms back the builders not the blockers, unlock investment and make it easier to build the 1.5 million new homes across every region– rebuilding the foundations of our economy and making affordable homes a reality for working people once again.”
Within weeks of entering office the government took swift action to overhaul the NPPF, which came into force last December, to restore and raise mandatory housing targets for councils. Changes today will help build more infrastructure to support new housing and bolster public services with vital improvements being made to schools, hospitals, and transport links.
In addition, the government is reaffirming its commitment to back housebuilders through a package of wide-ranging measures to ramp up housing and infrastructure delivery:
- Boosting the rollout of the Small Sites Aggregator across Bristol, Sheffield, and the London Borough of Lewisham, supporting SME builders with an extra £5 million to transform up to 60 small brownfield sites into new social housing.
- Working with local authorities to create new standard house designs to build more high-quality homes through modern methods of construction, so manufacturers can invest in modern factories and increase productivity.
- An additional £8 million for local planning authorities with the highest levels of major housing schemes waiting for a decision, including London Boroughs, to bolster capacity on the ground and quickly process applications at the final stages of approval.
- Biodiversity Net Gain plays a vital role in restoring nature while building the homes this country needs but we’ve heard clearly from developers, local authorities and ecologists that the system needs to work better for some of the smallest developments, and that there can be particular challenges on brownfield land. Government reforms to BNG will make the process simpler for SME developers while maintaining nature recovery at scale.
- Accelerating the construction of new data centres co-located near energy sites by creating a single planning route for approvals to drive growth, attract more investment, and boost AI Growth Zones for communities to have greater access to power.
- Pressing ahead with the modernisation of planning committees for elected councillors to focus on the most significant proposals, whilst smaller housing projects will be decided by expert trained planners more quickly.
These changes will build on top of the planning overhaul last year, which alone saw the OBR forecast the highest level of UK housebuilding in over 40 years and £6.8 billion added to the UK economy by the end of this decade.
These forecasts also do not account for pro-growth reforms in the Planning and Infrastructure Bill, which will become law before Christmas, in addition to the historic £39 billion investment for the new Social and Affordable Homes Programme.
Following the Budget last month, the government is also investing an extra £48 million to strengthen planning capacity and support the aim to recruit around 1,400 new planning officers this Parliament – currently remaining on track to exceed the manifesto promise of 300 planning officers by the end of next year.
Planning Director at the Home Builders Federation, Catherine Williams said: “The draft NPPF reinforces Government’s commitment to reforming the planning system and removing barriers to homebuilding, retaining a clear focus on sustainable development while protecting the natural environment. Proposals to reduce the complexity should help to reduce delays, speeding up the time it takes to get permissioned sites to the point when homes can be built and giving some much-needed encouragement to a dwindling number of local SME home builders. This progressive approach is urgently required if the industry is going to reverse the trend of recent years that has seen a decline in the number of homes being consented.”
The Royal Town Planning Institute (RTPI) will be holding regional roundtables from 12 January – 23 January for members across all English regions to guide its response throughout.
Robbie Calvert, Head of Policy and Public Affairs at the RTPI, said: “This is a significant and far-reaching reset of the planning system. These proposals go well beyond technical amendments and would fundamentally change how planning policy is structured and applied.
“It is vital that these changes are informed by the experience of planners working on the ground. To help shape our consultation response, we will be engaging with members across England to gather views and professional insight, ensuring our response is robust, evidence-based and reflective of our membership.
“However, we regret that a consultation of this significance is to be undertaken through the holiday period. It's important to the RTPI that we maintain the well-being of our members and the industry and give them well-deserved downtime. It's also critical that such a significant consultation be given full and comprehensive scrutiny.”
Brian Berry, Chief Executive of the FMB said the planning reforms are a positive push in the right direction.
“For medium planning sites the reforms will help SMEs grow their businesses,” he explained. “Getting to the ambitious 1.5million new homes target will require a joint push from the entire housing sector to achieve it and diversification of the housing market will be essential to ensure this happens.
"While the announced improvements help, smaller developers need well-staffed and dynamic planning teams, achieved through a boost in staff numbers or the use of innovative technology to support the process. Technical changes to planning will only ever go so far before funding becomes the main barrier which stalls sign offs. This is something the Treasury needs to understand and inject more cash to overcome a crumbling planning system."
