The HFI View: Planning reform is not enough to deliver the Government's targets, but the good news is that there's much more that could be done to accelerate housing delivery

Planning reform is important and can make a difference over the long term. It is widely considered that the current operation of the planning system has undermined housing delivery and that needs to be addressed. But experts at Savills say the Government's proposed local plan allocation reforms are unlikely to make a difference this Parliament. Savills have said:

"we expect the combined total of local plan annual targets will remain around 250,000-260,000 homes until 2027, and will only exceed the government's delivery target of 300,000 from the end of 2029. As a consequence, there won't be a sudden increase in land supply ...".

The Government's planning capacity and infrastructure measures will also take time to feed through once the new legislation has been brought forward and passed. Meanwhile "unlocking" stalled developments is reported at 4,700 homes. While this is not yet at a level to make a significant impact, it is a reminder of the importance of bringing forward existing developments. This has been a key feature of our work at the HFI.

In view of the Prime Minister's commitment set out in the "Plan for Change Milestones" on 5 December 2024, it is therefore essential - and increasingly urgent - that more immediate measures to increase the rate of housebuilding are considered.

What could more immediate measures look like?

There are a number of more immediate measures that can deliver more homes faster. Here's just four of the many ways in which housing delivery could be boosted:

Councils can – and do – deliver: Encourage a diversity of supply and support councils that deliver. This means more activity and practical encouragement to local authorities and housing associations and others to bring forward and deliver sites.

The New Homes Bonus was an effective policy tool – the Government should be making sure that money goes where it works. This should include looking at delegating housing and other grants and providing cash incentives to local authorities that deliver. It's been shown in the past and it holds true today, that councils really can lead the way and make a huge difference in housing delivery.

Done well, office to residential conversions can also help revitalise high streets and town centres and provide much needed additional homes. Permitted developments of office conversions have fallen to about 40% of the peak use. Meanwhile some town centres languish for want of an effective alternative use for tired shop premises as the shape of shopping and living in towns has changed. Many cash-strapped councils simply can't afford to use expensive compulsory purchase powers. But they should be supported to work in partnership with others to shape and re-energise high streets and town centres in line with their community vision.

Home Ownership Help: New mortgage support schemes would help First Time Buyers and lower income households onto the housing ladder. The Home Builders Federation have also highlighted how such schemes would also play a vital role in increasing housing delivery. On the other hand, increasing section 106 developer contributions for affordable housing, which the Housing Minister recently said he is considering, without looking at the overall costs and requirements of bringing forward new developments, risks site viability and could hamper housing delivery further.

Partnerships can deliver more Affordable Homes: Encouraging institutional private investment and partnership working could make a real difference to boosting affordable housing delviery. The current strategy of relying on public money for affordable housing from the affordable homes programme will not be enough. Indeed, following the Autumn Budget, it is difficult to see that there will be the headroom to deliver the affordable homes needed without harnessing private finance and partnership working. The good news is that there is a wall of private finance money keen to invest in affordable housing as well as low cost home ownership. It's vital to remove any blocks and barriers to investment.

Speed up new towns and other large scale developments: Accelerating new towns and other large scale developments would increase overall housing delivery. In particular it will be important to secure private finance and institutional investment to deliver the housing and infrastructure required – and ensure that the infrastructure providers, be that broadband, energy, transport or water, are prioritising installations and connections at the necessary pace to support new homes and communities. Mayoral led and local authority led new towns have particular potential.

At the HFI, we have been looking at new models for accelerated housing and infrastructure delivery and are keen to hear from individuals, organisations and councils who want to see real change and faster delivery. Contact us at connect@hfi.org.uk or get in touch with Natalie: natalie@hfi.org.uk.

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