In the Labour Government’s election manifesto, they pledged to build 1.5 million new homes in England over five years.
The Government set an annual housing target for each local authority – but it has transpired that 16 local authorities have new annual targets that are 400 per cent more than what they have recently delivered.
The London Borough of Kensington and Chelsea faces the most challenging target, being assigned a goal for new homes that is nearly 22 times higher than its recent average.
Concerns over the Government’s house-building demands
Councils were consulted on the targets last summer, with many expressing concerns that they were unrealistic.
Councillor Elizabeth Campbell, leader of Kensington and Chelsea, remarked that it was “out of touch to allow algorithms to set targets without considering the local context.”
Anecdotally, she stated that just walking through the streets of Kensington would make it clear that it is already a densely built borough, and that prospective house-building plans would be unachievable.
Similarly, Councillor Darren Sanders, cabinet member for housing at Portsmouth City Council, said the target would not work because “most of the city is an island” with a dense population” and “important natural assets”.
There are also concerns about manpower. The Construction Industry Training Board estimates the sector needs to attract the equivalent of 50,300 extra workers per year to meet the new targets.
There are also concerns about the availability of building materials.
Many housing experts doubt that external private housebuilders can deliver enough new homes each year to meet the targets.
This is because private housebuilders have a commercial interest in limiting the number of new homes built to avoid a decline in their average prices.
What practical steps are the Government taking to facilitate the new targets?
- Planning and infrastructure bill – Due to be introduced in March 2025, the bill aims to:
- Further reform compulsory purchase compensation rules to ensure that landowners receive compensation that is “fair but not excessive,” especially when delivering “important” infrastructure and affordable housing.
- Modernise planning committees to improve local planning decision-making
- Increase local planning authorities- capacity to improve performance and decision-making.
- Review green belt boundaries – Requiring local authorities to review green belt boundaries to release land for development. Establishing “golden rules” for green belt development, any residential development must benefit the public and set a target of at least 50 per cent affordable homes.
- Building on brownfield land – prioritising building on brownfield and grey belt land, such as disused petrol stations.
Legal perspective
There is unprecedented pressure on house builders and local authorities to meet the new Governments housing targets.
To meet the targets, the Government is outlining a flurry of new schemes aiming to speed up the necessary processes. With this, of course, will come legal implications.
For expert guidance on what the new rulings mean for you, get in touch with our team.