Government pushes housing development: The UK government has announced major changes to ensure developers deliver on their commitments and do not leave sites half-finished for years. Thousands of new homes promised to communities will be delivered faster as a result of these changes. For the first time, housebuilders will have to commit to delivery timeframes before they get planning permission. This will ensure they play their part in accelerating housebuilding and tackling the housing crisis.
Under the new rules, housebuilders will also have to submit annual reports showing their progress to councils to keep them on track. Developers who consistently fail to build out consented sites and those who secure planning permissions simply to trade land speculatively could face a ‘Delayed Homes Penalty’ worth thousands per unbuilt home. This penalty will be paid directly to local planning authorities.
Those deliberately sitting on vital land without building the homes promised could see their sites acquired by councils where there is a case in the public interest, and stripped of future planning permissions. This move demonstrates the government’s commitment to delivering 1.5 million new homes through its Plan for Change.
Still on Government pushes housing development
Large housing sites producing over 2,000 homes can take at least 14 years to build, depriving working families and young people of homeownership or the ability to rent an affordable home. However, where more than 40% of homes are affordable, build-out is twice as fast. The government is therefore testing a new requirement for large sites to be mixed tenure by default, helping to build more homes, including more affordable homes, faster.
Deputy Prime Minister and Housing Secretary, Angela Rayner, emphasized the government’s commitment to delivering security for working people. She stated that the government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. Rayner urged developers to roll up their sleeves and play their part in delivering the homes needed.
The government continues to back the industry with the tools and support it needs, but in return, developers need to get on and build. These reforms play a key part in the government’s Plan for Change to build 1.5 million homes this Parliament and deliver the biggest boost in social and affordable housebuilding in a generation.
Work is already underway through the new pro-growth National Planning Policy Framework, including mandatory housing targets for councils. This will drive UK housebuilding to its highest level in over 40 years and add £6.8 billion to the UK economy by 2029/30. The landmark Planning and Infrastructure Bill will also make it quicker and easier to build 1.5 million homes and boost the economy by up to £7.5 billion over the next decade.
The Local Government Association has welcomed the government’s move, stating that it will help ensure meaningful build-out of sites. The association has been calling for easier penalties for developers and acquisition of stalled housing sites. The ability to apply a ’Delayed Homes Penalty’ is a power that councils have been asking for, and it will ensure local taxpayers are not missing out on lost income due to slow developers.
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