Angela Rayner, the housing secretary, has announced a significant overhaul of England’s planning rules, aiming to fulfil Labour’s commitment to build 1.5 million new homes by 2029.
In a move to address the housing crisis, Rayner reintroduced mandatory local housing targets, which had been diluted by the Conservatives in 2022. She also proposed reclassifying low-quality green belt land as “grey belt” to facilitate development. Acknowledging the potential controversy, Rayner emphasised the necessity of these changes to enhance housing affordability.
The Conservatives criticised the proposals, suggesting they would force suburban areas to accommodate more housing from urban Labour strongholds. Under the new plans, English councils will be required to integrate government-set housing targets into their long-term plans or risk losing the power to block new developments. This reverses the previous government’s decision to make these targets advisory, a concession to backbench Tory MPs.
Speaking in the Commons, Rayner accused the Conservatives of prioritising party interests over national growth, citing a likely drop in new home starts to below 200,000 this year, far short of the previous government’s 300,000 target.
Recalculated targets
Labour plans to alter the target calculation method, eliminating a 35% “uplift” for major urban areas and adjusting for housing affordability. The new approach will require councils to plan for approximately 370,000 homes annually, up from the current 305,000. This recalculation will see targets reduced in some Labour-run urban areas, including London, Birmingham, and Coventry, which had previously criticised the uplift as unrealistic.
Rayner admitted some targets might seem surprising but argued that the previous system yielded odd outcomes. For instance, London’s quota will decrease from nearly 99,000 to about 80,000 homes annually.
‘grey belt’ development
The government outlined plans to facilitate building on certain green belt areas, proposing councils review boundaries if housing needs cannot be met otherwise. Land reclassified as “grey belt” will include previously developed areas or those contributing minimally to countryside protection and historic town character.
While the proportion of green belt land to be reclassified remains unspecified, local authorities will determine the final amount. Development in grey belt areas will follow new “golden rules,” including requirements for a portion of new homes to be affordable.
Labour also intends to eliminate the vague requirement for new homes to be “beautiful,” citing inconsistent interpretations across regions.
Reactions and criticisms
Shadow housing secretary and Tory leadership hopeful Kemi Badenoch criticised the changes, arguing they would create more uncertainty and force suburban and rural areas to absorb housing from inner-city Labour areas.
The Greens dismissed the planning reforms as a distraction from Labour’s failure to fund genuine solutions to the housing crisis, such as large-scale investments in truly affordable, sustainable council housing.
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Rayner sets ambitious housing targets in planning overhaul