The planning and infrastructure bill unveiled on Tuesday signals both a strategic move and a show of resolve by the government. They clearly understand the political stakes involved, especially concerning younger voters who are increasingly frustrated with soaring housing costs. Recognizing this, ministers are determined to offer them support. The bill aims to streamline decision-making processes and empower development corporations. When these legislative changes take effect, it will become more challenging for councils and landowners to block what the ministers consider advancements.
How this plan unfolds will serve as a major test for Sir Keir Starmer’s administration. The initiative to simplify and reduce the cost of compulsory land purchases, alongside efforts to expedite clean energy projects, is a commendable step. Additionally, reforming the leasehold system must quickly follow to protect new homeowners from being exploited by freeholders.
However, the ambitious goal of constructing 1.5 million new homes within five years seems far-fetched. Even if this target were achievable, such a substantial increase in housing might not align with the interests of property developers, whose goals are not entirely in sync with those of their buyers. First-time buyers hope for lower prices, whereas sellers aim to maximize profits. The Competition and Markets Authority continues to probe into possible anti-competitive behavior among housebuilders, reflecting this tension.
There are also concerns about Labour’s approach, particularly regarding the build-to-rent sector. A recent Common Wealth think tank report cautioned that a few private equity-backed firms might end up controlling a significant portion of new housing. While private rentals are likely to be part of new neighborhoods, Angela Rayner’s department must ensure that councils and housing associations can offer a sufficient number of much-needed tenancies. One of the most damaging consequences of the UK’s relentlessly overheated property market is the chronic lack of affordable homes for low-income individuals. Ms. Rayner has recently secured an additional £350m for social housing, but more investment will be necessary.
Once the foundational framework is established, much will hinge on the local plans and the choices made by development corporations. It’s crucial for ministers, mayors, and councils to urge boldness, drawing inspiration from successes both past and present. Builders should not be allowed to repeatedly use uninspired designs. To foster innovation, Sir Keir and Ms. Rayner should continue their field visits, such as their recent trip to a new Duchy of Cornwall project in Cornwall.
By highlighting green infrastructure, the bill positions planning reform as an initiative that’s not just social and economic, but also environmental. However, the track record of housebuilders incorporating nature-friendly features leaves much to be desired. Although the increased backing for renewable energy is a promising development, the pressure placed on net-zero goals by carbon-heavy construction cannot be overlooked. The UK’s housing affordability dilemma stems largely from right-wing policy decisions, particularly the scaling back of publicly owned housing and a right-to-buy policy that ended up favoring landlords. It’s crucial that this housing crisis does not become a pretext for an environmentally detrimental property boom where developers are the main beneficiaries.
Planning reforms indeed possess the potential to promote social mobility and ease the burden on overstretched households, but it won’t happen automatically. It will require political acumen and determination to ensure that the focus remains on people rather than profits in the development of new towns, while also safeguarding nature to the greatest extent possible.
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