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New powers planned for councils as housebuilding targets are supercharged

Sep 3, 2024

By Laura Potts, MRTPI, Planning Consultant, CAD Architects

August 2024 has seen the introduction of important initiatives related to the government’s ambitious plans for housebuilding and planning reform, which are set to make a difference both locally and nationally.


Councils and public bodies in England are poised to be handed powers to enable them to buy green belt land without overpaying as part of the government’s drive to build 1.5m homes by 2030. The UK government plans to introduce legislation to grant councils greater authority to issue compulsory purchase orders (CPOs) for land, including green belt areas, ensuring landowners receive a “fair but not excessive return”.  


These new powers are just one example of how the government plans to deliver its new target of building 1.5m homes by 2030. This initiative forms part of a broader effort to overhaul the planning system and address the UK housing crisis. The proposals in August followed the deputy prime minister, Angela Rayner, setting out wide-reaching planning and housing policy reforms aimed at accelerating housebuilding.


This move follows a decade of declining housebuilding and planning system disruptions.  These proposals aim to “get Britain back to building” and come alongside substantial proposed changes to the National Planning Policy Framework, currently under consultation. (A link is included towards the end of this blog.)


The government’s ambitious housebuilding targets have now been translated into local council targets.


As of August 2024, Cornwall has a new housing target of building over 1,500 more new homes annually. The Ministry of Housing, Communities and Local Government figures show the proposed target for Cornwall has been set at 4,454 new homes annually – up from the previous target of 2,707 homes a year.


Across England, targets set by the previous government were for 305,223 homes to be built every year. That will be stepped up to 371,541 a year under the new proposals. In some areas this results in significant increases in the number of new homes required, such as the north-west of England, whose target rose from 21,500 to just under 38,000 homes, and the east of England, where the target rose from 35,000 to nearly 45,000.


At CAD Planning, based in Truro in Cornwall, we are committed to sustainable built development and we are keeping a close eye on the new announcements. Overall, we believe that the new government’s approach is positive for developers and most importantly, for the local economy and the communities we serve.


The situation is fast evolving, as the new government works through its plans and turns them into law.


The changes to CPOs on green belt land and the new designated category of ‘grey belt’ are a case in point and a good example of how the planning landscape is changing as well as illustrating how complex the issues are.


The green belt was established nationwide in 1947 under the Town and Country Planning Act to prevent “urban sprawl”— to protect land on the edges of cities and towns. It covers 6,300 square miles (13% of England). Much of the green belt is owned by farmers, with about 65% of all the country’s greenbelt used for agriculture. However, some investors have been prospectively buying up greenbelt land in recent years in the hope that planning rules are loosened. It’s worth pointing out that Cornwall does not have any ‘Green Belt’ land. Notwithstanding this, this change nationally will no doubt result in changes at a local level.


Green belt landowners who are unwilling to sell would face compulsory purchase orders (CPOs) that would force them to hand over their land if the site could host a “quality housing scheme” in the public interest. Under the proposed rules, which are under consultation, these landowners could be forced to sell at a capped benchmark value that the government has said will provide “fair but not excessive return” for the landowner.


Under new ‘golden rules’, councils will be required to prioritise building on brownfield sites and poor-quality areas in the green belt, dubbed “grey belt”. Labour Leader Sir Keir Starmer said his party was committed to a “brownfield-first” approach but would loosen planning laws and create a new class of “grey belt” land for low-quality green belt areas.


The Prime Minister has said: “Our golden rules will also ensure any grey belt development delivers affordable homes, new infrastructure and improved green spaces. We’ll prioritise ugly, disused grey belt land, and set tough new conditions for releasing that land.”


At least 50% of housing development on these sites must be considered affordable, the government has said.
Prior to the general election, Labour politicians described the grey belt as “poor-quality scrub land, mothballed on the outskirts of towns” and “poor-quality and ugly areas.”


Now in government, Labour have set out a more detailed definition in their proposed update to the National Planning Policy Framework. It tells us that the “grey belt” is:


‘Land in the green belt comprising Previously Developed Land and any other parcels and/or areas of Green Belt land that make a limited contribution to the five Green Belt purposes.’


We will explore this subject in more detail in our next blog article.


The proposed update to the National Planning Policy Framework for England is currently open for consultation until 24th September 2024.


https://www.gov.uk/government/consultations/proposed-reforms-to-the-national-planning-policy-framework-and-other-changes-to-the-planning-system/proposed-reforms-to-the-national-planning-policy-framework-and-other-changes-to-the-planning-system


We hope that this brief overview gives you some insight into the huge changes that are underway with regard to planning and housebuilding.


At CAD Planning, we always aim to stay ahead of the latest rules and anticipate any change, so that we can provide the best possible service to our clients, helping to streamline your development project and help achieve your ambitions.


For more information, contact us at info@cad-planning.co.uk

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