As the dust settles from the recent election, there’s been a lot of ambitious plans announced that could significantly impact the property development sector as we know it.
From removing the moratorium on onshore wind developments and a promised new National Planning Policy Framework (NPPF), our new government has swiftly introduced statements and proposed reforms that signal an intent to overhaul planning policies and boost economic growth.
These are just a few of the changes proposed. Below, we’ve put together a comprehensive update on the latest developments and what they mean for property developers and planning consultants.
Treasury-led planning
The government is committed to a substantial spending agenda without increasing taxes, apart from imposing VAT on private schools. To fund these promises, there will have to be a strong focus on economic growth through stimulating the development sector.
Rachel Reeves, the new Chancellor, has highlighted the urgency of planning reform. In her first speech at Number 11 Downing Street, she emphasised the need to streamline the planning system to eliminate bureaucratic delays. Here’s a key excerpt from her speech:
"Nowhere is decisive reform needed more urgently than in the case of our planning system. Planning reform has become a byword for political timidity in the face of vested interests and a graveyard of economic ambition. Our antiquated planning system leaves too many important projects getting tied up in years and years of red tape before shovels ever get into the ground. We promised to put planning reform at the centre of our political argument – and we did.”
You can read the full transcript here or watch the video below of Reeves’ speech:
This strong stance on planning reform suggests that the development sector will play a central role in the government’s economic strategy.
Introducing the 'Grey Belt'
Releasing any Green Belt land has always been an emotive and politically-charged topic. But during the run up to the election, the topic started to heat back up as a potential solution to the hefty housing targets proposed by Labour.
The intriguing concept of the ‘Grey Belt’ was introduced during the election campaign. This term, now poised to be formalised into policy, represents a significant shift in how land use on the Green Belt is approached.
We've been analysing the implications of the Green Belt for some time, including an analysis back in 2022 that found if only 1% of the Green Belt was released, there could be around 300,000 homes delivered.
In 2023, an official announcement released new data about changes to the extent of Green Belt, and following suit, we looked beyond the headlines to better understand what this announcement meant - including where Green Belt land had been added and released and how it could further impact housing delivery.
And in the run-up to the election, we began evaluating what the Grey Belt could mean for site identification and development opportunities. Our findings indicate that approximately 300,000 houses could potentially be built on ‘Grey Belt’ land as it is currently defined. For a detailed look, check out our analysis here.
Legislative reform
The King’s Speech outlined several legislative priorities, including two key bills relevant to the property sector. Below we’ve broken down the main objectives and key points to consider for each of these proposals:
The Planning and Infrastructure Bill
Objective:
- Reform the planning system to boost economic growth, unlock housing development, and accelerate infrastructure delivery.
Key Points:
- Streamline delivery of critical infrastructure, including the national grid and renewable energy.
- Reform compulsory purchase compensation rules to ensure fair payments, potentially contentious among landowners.
- Modernise planning committees to improve local planning decision-making.
- Utilise development projects to fund nature recovery initiatives.
The Devolution Bill
Objective:
- Establish a new framework for English devolution, transferring more power to local leaders.
Key Points:
- Empower local leaders with enhanced control over strategic planning, transport networks, and employment support.
- Enable local leaders to produce Local Growth Plans to drive regional development.
Read more on how to engage with the local government as a property developer here.
As ever, the devil will be in the details of these new bills. As they make their way through parliament we’ll be keeping an eye on how this detail evolves and what it might mean for the development sector.
In the meantime, a policy update is likely to have a much more immediate impact. A new NPPF is expected to roll back some of the more recent changes introduced by the last Government, and introduce new incentives to move the country towards 100% local plan coverage. We can keep our fingers crossed…
Stay ahead of changes
As new policies and legislative details emerge, we’ll continue to update you with how these changes could impact you and your business - ensuring you’re able to stay ahead of the curve and able to make strategic decisions with confidence.
Ready to start navigating these changes to capitalise on new opportunities? Request a demo below to see how you can leverage LandTech’s advanced tools and insights to navigate the evolving landscape and stay ahead of the competition.
