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Govt Urged to Support Housebuilding Amid 'Present-Day Emergency'

Created at 30 Jun · 2:55 AM1 source↑ Market-relevant
IN SHORT

The UK government is proposing emergency measures to boost housebuilding, particularly in London, through a fast-tracked planning process. These measures aim to address viability issues and streamline approvals, with new powers for the Mayor of London and potential intervention in stalled projects.

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Key Numbers

20%minimum affordable housing on fast-tracked sites
60%of affordable homes must be social housing
31 December 2028end date for CIL relief
50 homesminimum for Mayor to call-in schemes
1,000sqmminimum for Mayor to make decisions on green belt developments
31 March 2028end date for new planning route
£322minitial fund for City Hall Developer Investment Fund
1.5 milliongovernment target for new homes
150 homesminimum for Housing Secretary intervention

Who's Involved

Steve Reed
Housing Secretary, promoting measures to boost housebuilding
Sadiq Khan
Mayor of London, given new powers to fast-track housing
Home Builders Federation
Welcomed reforms to increase housing supply
Royal Town Planning Institute
Welcomed reforms to increase housing supply
Barratt Redrow and Vistry
Major housebuilders welcoming new pledges
Govt Urged to Support Housebuilding Amid 'Present-Day Emergency'

↳ Why This Matters

These measures aim to address a critical shortage of housing, particularly affordable and social housing, in London and across the UK. By simplifying planning and offering financial incentives, the government hopes to stimulate construction, potentially lowering housing costs and increasing availability for residents.

Key facts

  • The UK government is introducing emergency measures to accelerate housebuilding, especially in London.
  • A fast-tracked planning process will be implemented for sites meeting specific affordable housing criteria.
  • Developers may receive temporary relief from the Community Infrastructure Levy (CIL) for qualifying projects.
  • The Mayor of London will be granted new powers to intervene in and fast-track housing developments.
  • An initial £322m fund is allocated to boost housebuilding in London.
  • National print and broadcast media have covered the announcement, with positive reactions from industry stakeholders.

The UK government has announced a package of emergency measures designed to accelerate housebuilding, particularly in London, by streamlining the planning process and providing financial relief. These proposals aim to address what is described as a 'present-day emergency' in the housing sector.

The fast-tracked planning process will be available to sites that commit to delivering at least 20% affordable housing, with 60% of these designated as social housing. Developers may also receive temporary, time-limited relief from the Community Infrastructure Levy (CIL) where necessary, applicable to projects starting after the new regulations are enacted and before December 31, 2028. Additional relief will be offered for schemes with higher percentages of affordable housing.

New powers are being granted to the Mayor of London, including the ability to review and call in housing schemes of 50 homes or more, potentially bypassing local council refusals. The Mayor will also have authority over developments of 1,000 square meters or more on green belt land. The Greater London Authority will consult on these new planning route terms for six weeks starting in November, with guidance expected imminently. This new route is intended to cut up to six months from the planning process.

An initial fund of £322 million has been confirmed to establish a City Hall Developer Investment Fund, supplementing the £39 billion already allocated for the Social and Affordable Homes Programme. Housing Secretary Steve Reed emphasized the importance of getting 'spades in the ground' and delivering the right homes in the right places, especially near transport links.

Nationally, the government is also proposing a default 'yes' for new homes around well-connected train stations and measures for the Housing Secretary to potentially intervene in schemes of 150 or more homes. The statutory consultee process is also being streamlined to reduce delays. These measures have received positive reactions from various stakeholders, including the Home Builders Federation, Royal Town Planning Institute, and major housebuilders like Barratt, Redrow, and Vistry.

Frequently asked questions

The main goal is to accelerate housebuilding across the UK, with a particular focus on London, by streamlining the planning process and providing financial support.

Sites must commit to delivering at least 20% affordable housing, with 60% of those being social housing. Developers may also receive temporary relief from the Community Infrastructure Levy (CIL).

The Mayor will be able to review and call in housing schemes of 50 homes or more and make decisions on developments of 1,000sqm or more on green belt land.

An initial £322 million fund will be set up for a City Hall Developer Investment Fund in London, in addition to existing funding for affordable homes.

What Happens Next

01The Greater London Authority will consult on the terms of the new time-limited planning route for six weeks starting in November.
02Guidance for the new planning route is expected to be published imminently.
03The government will consult on proposals for CIL relief for qualifying schemes.

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Cadence

How It Developed

The government announced emergency measures to support housebuilding in London.
A fast-tracked planning process will be available for sites with at least 20% affordable housing.
Developers may receive temporary relief from the Community Infrastructure Levy (CIL).
The Mayor of London will gain new powers to fast-track housing schemes.
An initial fund of £322m will be set up for a City Hall Developer Investment Fund.
Measures include a default 'yes' for new homes around well-connected train stations.
Housing Secretary Steve Reed stated the goal is to get Britain building the right homes in the right places.
Industry stakeholders, including the Home Builders Federation, welcomed the proposed reforms.

Sources

T1
'A present-day emergency': Govt urged to support housebuildingSky News · UK
T2
Government commits to social housebuilding with £2bn packagebuildnews.co.uk
T2
Coverage of the housebuilding acceleration measures announcementmhclgmedia.blog.gov.uk
T2
Govt proposes emergency measures to boost housebuilding in Londonmortgagesolutions.co.uk

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