Controversy and Urgency: UK Government Sets Bold 370,000 Annual Housing Target in Radical Planning Overhaul

Government Unveils Ambitious Annual Goal of 370,000 New Homes Amid Controversy

Angela Rayner described the government's new housing strategy as bold and potentially contentious, yet necessary.

Political correspondent @alixculbertson

Tuesday, July 30, 2024, at 5

For an enhanced viewing experience, consider using the Chrome browser.

The government has outlined a major overhaul of the planning system, aiming to facilitate the construction of 1.5 million new homes within the next five years.

Housing Secretary Angela Rayner announced that the compulsory housing quotas for England, previously eliminated by the former Conservative administration in December, will be reinstated.

She announced that the yearly goal for home construction would rise from 300,000 units to slightly more than 370,000.

The goal for London has been reduced from the initial 100,000 to approximately 80,000, a challenge that the mayor of London, Sadiq Khan, is "eager to meet," she stated.

Stay updated with live political coverage

Ms. Rayner revealed that the government will modify the formula that determines local housing needs to more accurately address the demand urgency in those areas.

The regulations will mandate that half of all new residential developments be priced affordably, particularly emphasizing homes available for social rent.

Further Information on Angela Rayner

Angela Rayner minimizes potential resistance from Labour MPs to housing initiative as new towns task force is established.

Angela Rayner: Unveiling the Journey of the UK's Latest Deputy Prime Minister

Penny Mordaunt criticizes PM for departing D-Day events prematurely

Relevant Subjects:

She mentioned that councils would receive £450 million from the local authority housing fund to create 2,000 new homes.

Ms. Rayner described the plan as "radical" and anticipated it would spark controversy, emphasizing that the housing crisis demands immediate action.

Housing Minister Matthew Pennycook is set to convene with leading developers on Tuesday to "ensure their commitment aligns with our rapid pace of reform," she stated.

Over thirty residential construction firms endorsed a declaration advocating for the reinstatement of compulsory housing quotas and the liberation of "grey belt" areas for development.

Shadow housing secretary Kemi Badenoch criticized Ms. Rayner for approving the construction of "1.5 million unsightly homes" in England under the latest planning reform proposals.

She mentioned that the new administration is considering removing the mandate for new homes to be "beautiful." However, Ms. Rayner argued that beauty is a subjective concept, hard to pinpoint, and results in uneven application decisions.

Stay updated on the most recent developments both in the UK and globally by tuning into Sky News.

Focus on brownfield locations as primary option

Ms. Rayner emphasized that the reforms prioritize brownfield development as the initial focus and aim to encourage the construction of high-density housing in urban areas.

She mentioned that under the proposed plans, certain areas of underutilized green belt land would be designated for building, and a new criteria would be established to define what qualifies as low-quality green belt land.

Developers will be mandated to fund essential amenities including schools, medical facilities, transportation networks, and enhancements to public green spaces.

Builders are currently required to do this, however, Ms. Rayner highlighted that her administration would modify "the prior government's disorganized method of developing the green belt, which has led to the construction of inappropriate homes in unsuitable locations, lacking the necessary local amenities."

Local governments are required to reassess their protected green spaces to fulfill housing objectives.

Read further: Reeves charges Hunt with dishonesty regarding economic statements. Chancellor suggests possible tax increases in upcoming fall budget.

Transformation in Public Housing

She announced a significant revitalization of council housing, describing it as the largest increase in social and affordable housing in decades. However, she noted that full details would be disclosed in the autumn budget, scheduled for October 30.

The budget will also include proposals to empower local governments with the ability to secure "rent stability" through borrowing and investment.

She explained that local authorities need to maintain current development plans to reduce their susceptibility to speculative developments via appeals.

Ms. Rayner announced that the government plans to review and potentially modify the Right to Buy scheme.

New legislation aims to target appropriate uses

Ms. Rayner mentioned that the government plans to put forward a bill related to planning and infrastructure, aimed at ensuring planning committees concentrate on the appropriate applications with the required expertise.

She assured that adjustments would be implemented to ensure landowners receive appropriate compensation for their property, without overly generous sums, to establish a stable foundation for planning departments.

The 1961 Land Compensation Act bars local authorities from purchasing land for development at its agricultural value.

Stay ahead with the latest Breaking News

Download the Sky News application at no cost

Neil Jefferson, the head of the Home Builders Federation, stated, "Today marks the most significant initial move that ministers have made towards overcoming the obstacles in the construction of new homes."

He noted that the planning system has consistently been unsuccessful in allocating sufficient land for affordable housing, and that the availability has drastically decreased in recent years following the elimination of housing targets.

Dr. David Crosthwaite, the lead economist at BCIS, an organization that supplies cost information to the UK construction sector, expressed skepticism about the Labour Party's ability to meet its aggressive housing construction goals. He attributed this difficulty to private developers who regulate the market to optimize their profits.

Associated Subjects

Sky News Bottom Section

Information About Sky News

Services Provided by Sky News

Channels on Sky

Additional Sky Websites