Accelerating UK housing delivery: A comprehensive review of recent government announcements

The UK government's recent proposed changes to the National Planning Policy Framework (NPPF) represent a significant step forward in addressing the housing crisis and delivering a phased change in housing supply. By strengthening the presumption in favour of development, revising planning policies and promoting cross-boundary collaboration, the government aims to increase housing delivery and improve the housing market. There is already a growing sense of positivity from those in the housebuilding industry wanting to deliver new homes as a result of these announcements and most of these changes, if implemented in full, will in time boost the delivery of planning permissions.

However, challenges related to Neighbourhood Plans, nutrient neutrality, flood risk, Biodiversity Net Gain (BNG), affordable housing, and the grey belt need to be carefully addressed to ensure these policies effectively contribute to sustainable and inclusive housing development.

Strengthening the presumption in favour of development

The government's focus on clarifying and strengthening the presumption in favour of development is a crucial step in streamlining the planning process and encouraging more housing projects. By making it clear that development should be permitted unless there are compelling reasons to refuse it, the government aims to reduce unnecessary delays and uncertainty for developers. This could lead to a significant increase in housing approvals and ultimately, the delivery of new homes.

Enhancing the Standard Method and reversing previous policy changes

The revision of the Standard Method to increase housing requirements across most authorities is a bold move that could significantly boost housing delivery. By raising the bar for local authorities, the government is sending a clear message that more housing is needed to meet the growing demand. Additionally, the reversal of previous policy changes, such as the reinstatement of the rolling requirement for demonstrating a five-year housing land supply and the 5% buffer for housing requirements, will provide greater certainty and stability for developers.

Promoting cross-boundary strategic decision making

The emphasis on cross-boundary strategic decision making is essential for addressing regional housing shortages. By further encouraging collaboration between local authorities, the government aims to ensure housing development is coordinated across different jurisdictions and that regional housing targets are met. This approach can help to avoid fragmented planning and ensure new housing developments are well-integrated into the wider community. We’ll also be looking out for further announcements in relation to a revival of regional strategic planning hinted at in the Secretary of State’s statement on the 30th of July.

Addressing challenges and considerations

While the government's proposed changes to the NPPF are promising, there remains several important missed opportunities within the NPPF to remove current blockages to the delivery of new homes.

Neighbourhood Plan imbalance

The protections against the application of the ‘tilted balance’ for areas with an adopted Neighbourhood Plan that is less than five years old remain in the draft NPPF. This will create ‘islands’ of protection for Neighbourhood Plan areas which are stronger than those provided for by a newly adopted Local Plan, despite the much lower bar that Neighbourhood Plans must meet to be found sound. This situation seems illogical and counter to the overall direction of the draft revisions to the NPPF which are designed to promote a proactive approach to housing delivery and increase numbers.

Nutrient neutrality

Nutrient neutrality continues to pose significant obstacles for housing projects in many areas, requiring innovative and complex solutions and usually significant cost and delay. Research by the House Building Federation (HBF) suggests circa 160,000 homes are being held up nationally by this issue, despite evidence suggesting the effect of new development on nutrients entering the ecosystem is minimal compared to existing sources such as agriculture. Whilst it may take changes beyond the NPPF to unlock this issue, if the government truly wants to boost the supply of housing, they must look at more effective, strategic ways of managing the nutrient neutrality issue that does not disproportionately put the burden on developers and local authorities to find a solution.

Flood risk and sequential testing

Flood risk and the application of the sequential test remain sources of uncertainty for developers, and the government needs to provide clearer guidance and support. Whilst certainly a sensitive issue, the draft NPPF includes no changes to this important area of policy and so represents a significant missed opportunity to provide clarification on the application of the sequential test that developers, local authorities and inspectors need.

Biodiversity Net Gain

Biodiversity Net Gain (BNG) is a valuable concept that aims to protect and enhance biodiversity, but it can also present challenges for housing development. Balancing the need for new housing with the requirement to deliver BNG is often difficult, particularly on brownfield sites which can often be more biodiverse than greenfield land. It also doesn’t always result in the desired effect, resulting in potential pockets of difficult to manage ‘ecology’ land on residential sites which may have been much more effectively and beneficially provided and managed off-site. The government should provide clear guidance and support to help developers navigate these challenges and deliver projects that meet both housing and environmental objectives in the most effective way whilst still enabling development to remain viable.

Affordable housing funding

Affordable housing remains a pressing issue, and while the government has announced some additional funding, there is still a need to address the low demand for affordable housing elements of market-led sites. Factors such as changes in building regulations, fire safety requirements, and grant funding, which themselves are important in their own right, have nonetheless contributed to this situation. The government will need to explore ways to make it more viable for developers, housing associations and local authorities to provide more affordable housing whilst working with housing associations to address the funding and operational challenges.

The grey belt

Whilst the NPPF changes to green belt policy are certainly a step in the right direction, there is likely to be a wide scope for continued debate during applications, appeals and local plan examination as to what constitutes ‘grey belt’, with the determination of grey belt being a matter for the decision maker based on an assessment of how land performs against the five green belt purposes. The level of interpretation of how land may or may not meet the green belt purposes is likely to lead to significant debate at appeals and likely further consideration through the courts which is likely to weaken the effect of the policy and hence fundamentally may prevent significant green belt release where it is needed.

A more radical but effective approach to reconsidering the green belt may be to reconsider the fundamental purpose of and need for green or grey belt at all – a politically sensitive issue certainly, but critically important if housing aspirations are to be met. An alternative and more effective approach could instead rely on the already generally strong spatial strategies and countryside policies which aim to direct development to the most sustainable locations, generally adjacent to existing settlements or where there is already good public transport or opportunities to provide enhanced public transport.

Closing thoughts

The government's package of draft housing policies in the NPPF represents a significant step forward in addressing the housing crisis. By strengthening the presumption in favour of development, revising planning policies, and promoting cross-boundary collaboration, the government aims to increase housing delivery and improve the housing market.

However, missed opportunities related to Neighbourhood Plans, nutrient neutrality, flood risk, BNG, affordable housing, and the grey belt need to also be carefully considered by the government if they truly want to deliver the 1.5million homes they have promised and effectively meet the continuing housing crisis identified in this country. There are also concerns that some of the financial changes proposed by the Government (such as increasing capital gains tax) could have adverse implications.