NPPF reforms: Boosting housebuilding

On 30th July, the Government launched an 8-week consultation seeking views on the proposed changes to the National Planning Policy Framework (NPPF). For the residential sector, the proposed revisions support an increase in housebuilding and underpin the Government’s commitment to building 1.5 million new homes over the next five years.

The Government proposes an overhaul of the planning system which includes reinstating mandatory housing targets, and updating the method used to calculate them. The outcome of the proposed revised method for assessing housing need was published (link here) and results in a significant increase in the overall national housing need increasing by 21%, from 305,223 to 371,541 annually.

The regions set to experience the biggest changes are the North East with a 99% increase in its local housing need (from 6,123 to 12,202) and the North West with a 75% increase (from 21,497 to 37,817). London is the only region seeing a reduction, with an 18% decrease (from 98,822 to 80,693) due to the removal of the 35% urban uplift, a reflection of the move away from concentrating growth specifically within urban area.

Notably the NPPF proposes to reinstate the requirement for Councils to demonstrate a five-year housing land supply (5YHLS), even when the adopted Local Plan is less than five years old.

One of the key policy initiatives to help facilitate the delivery of these targets is through building on ‘grey belt’, which the NPPF 2024 defines as previously developed land in the green belt that makes a limited contribution to the five green belt purposes and which excludes areas or assets of particular importance. Grey belt sites will only be built on if they meet the Government’s ‘golden rules’ that 50% of homes are affordable, the plans enhance the local environment and the necessary infrastructure is in place.

Another key proposal is for planning policies to include a minimum proportion of social rent homes, recognising the importance of genuinely affordable housing.

A lot of very positive proposals to increase housebuilding, however whether these measures will be enough to reach the Government’s proposed housing targets remains to be seen. Marcus Dixon, UK Head of Living and Residential Research at JLL commented:

“Many of the plans put forward in the NPPF consultation show real intent to deliver change. Having specific and measurable targets help, but more importantly we need to enable affordable housing providers to invest, ensure infrastructure is in place to support development and invest in our construction sector to make sure we are able to resource and support delivery”.

Reflecting on the proposals, Raoul Veevers, Head of London Planning stated:

“Overall, the proposed changes represent a refreshing and significant shift in the approach to support housing delivery – with the primary focus being on previously developed land, in the areas where housing is needed most. How necessary supporting infrastructure is deployed, as well as the management of environmental impacts, also needs to be carefully considered in parallel”.

It’s now time for the industry to respond. Consultation closes on 24th September 2024.

To discuss any of the matters discussed above or any other planning matter, please contact the team.