A year of change in 2024
The year is ending, and it has been one of considerable change. That has been true of much, but it has been particularly true of the colliding worlds of property, planning and politics.
At the start of the year, the country was governed by a Conservative administration coming to the end of 14 years in power, and as we end it, we are governed by a Labour administration hoping this is the start of a long period in power. With political change, comes policy change, and the property world has had much to stay abreast of since Keir Starmer came to office.
The new government was elected on a platform of reforming the planning system to significantly increase housebuilding rates in pursuit of a target of 1.5 million new homes in this parliament. As such, they announced an immediate review of the National Planning Policy Framework (NPPF) and included a Planning and Infrastructure Bill within the King’s Speech. While the details of the latter will come in Spring 2025, details of the NPPF changes came on 30th July, with a revised document published for consultation that proposes several key measures including:
- Changes to the Standard Method for assessing housing need, which increases the annual housebuilding target from 300,000 to 370,000.
- Reinstating the need for local authorities to demonstrate a five-year land supply at all times.
- Introducing ‘Grey Belt’ land into the planning system, defined as land within the Green Belt that has been previously developed, or land that makes a limited contribution to the Green Belt. Planning policy will make it easier to develop on land with this designation.
The consultation has now concluded and the revised NPPF has been published, forming the basis of planning policy in England. At the same time, the Government have a Working Paper out on a new National Scheme of Delegation that will mean professional planning officers, rather than committees will determine more applications. They’ve also published a White Paper on the re-organisation of local government, among a slew of other announcements. The question is, will this all be enough?
The last set of housing statistics show 44,550 dwellings were completed in England in the second quarter of 2024, implying an annual rate of just over 178,000. To achieve what is required to meet the stated 1.5 million home target, the government will have to, at a minimum, double completion rates. Housing starts were just as bad. In the same quarter, starts were at 25,510 in England, at an implied annual rate of just over 100,000 which does not bode well for a target the government made the centre piece of its election campaign.
The only conclusion that can be drawn is the changes proposed to the NPPF, subject to surviving the consultation process, will not be nearly enough for the government to achieve what is needed. A lot will rely on the new Planning and Infrastructure Bill promised for next year, and the government’s ability to accelerate projects stuck in the system currently, including smaller sites, held by SME developers, that can make a major contribution to meeting need.
2024 was a big year of change, but more is to come for the property, planning and political worlds in 2025. Time will tell what impact all this change will have.