Housing Plan 2024: Rayner Overhauls Targets To Address “Crisis”
Angela Rayner, Deputy Prime Minister and Housing Secretary, has announced a sweeping overhaul of England’s planning rules as part of Labour’s housing plan strategy to combat what she describes as the “most acute housing crisis in living memory.” The initiative aims to deliver 1.5 million new homes by 2029, with new mandatory housing targets imposed on councils across the country.
Despite increasing targets at the national level, the plan has sparked controversy by reducing London’s housebuilding goals.
National Housing Targets Increased
The new plan includes an overall increase in the housing target for England, rising to 370,000 homes annually from the previous target of 300,000 set by the Conservative government. The new Labour housing plan includes a major overhaul of the planning rules. This marks a shift from the advisory targets to mandatory ones, aiming to ensure that councils incorporate these figures into their long-term planning.
However, the changes have sparked controversy, particularly regarding the reduction of London’s annual housebuilding target from 100,000 to 80,000 homes. Rayner defended the reduction, arguing that the previous target was an “absolute nonsense” based on an “arbitrary uplift.” She emphasised that the revised target still presents a significant challenge, but aligns more realistically with current construction capabilities.
Reactions and Criticism
Critics, including Freddie Poser of Priced Out, a group which advocates for affordable housing, expressed concerns about the reduction in London’s target, highlighting that London remains “the most unaffordable place in the country.” Priced Out plans to respond to the consultation, urging the Government to maintain the target at 100,000 homes to alleviate the city’s severe housing shortage.
Kemi Badenoch, Shadow Housing Secretary and Tory leadership hopeful, questioned the rationale behind reducing London’s target, suggesting that the new approach might not adequately address the fundamental economics of housebuilding. She warned that without addressing these core issues, the goal of building 1.5 million homes might remain an unattainable aspiration.
In response to these concerns, Rayner reiterated in the Commons that the overhaul was a necessary response, aiming to provide stability for local authorities and addressing previous inconsistencies.
Changes to Planning Rules
As well as restoring mandatory housing targets, Rayner announced updates to the methods used for calculations, which previously relied on outdated data. The new system requires councils to ensure that development is proportionate to existing communities and emphasises building in the most unaffordable areas.
A key feature of the new plan includes reclassifying some green belt land as “grey belt” to facilitate development. These areas will be subject to “golden rules,” ensuring that 50 per cent of new homes are affordable and have access to essential infrastructure such as schools and GP surgeries.
Industry and Expert Opinions
Kate Henderson, Chief Executive of the National Housing Federation, welcomed the announcement, praising the focus on social and affordable housing. She described the reintroduction of more ambitious housing targets and the overhaul of the planning system as an “important first step toward increasing supply”.
Conversely, Jonathan Cox, partner and head of social housing at Anthony Collins law firm, cautioned that simply increasing mandatory targets would not suffice. He stressed the need for a holistic approach to addressing the housing shortage, highlighting the financial pressures on social housing providers.
Whether or not Angela Rayner’s planning “revolution” achieves all that is required to tackle the housing crisis will only be clear in due course. In the meantime, the outlook for Estate and Letting Agents remains good as national demand for housing outstrips supply.
