In a significant move to address the UK’s housing crisis, Deputy Prime Minister Angela Rayner has announced an ambitious plan to dramatically increase the country’s housing supply. This initiative promises to create substantial opportunities for property developers.
Central to Rayner’s announcement is a commitment to build 370,000 homes annually, an increase from the current target of 300,000. This ambitious target aims to tackle chronic homelessness and ensure more people have access to affordable, quality housing. The plan includes a variety of social housing options, from affordable homes for first-time buyers to social rent, rental properties, catering to diverse needs.
As part of the consultation process, the government has proposed changes to the National Planning Policy Framework (NPPF) (see link below for full proposal) which include:
- Removal of the word “beauty” and “beautiful” when discussing well-designed development, as the Government considers they can lead to inconsistencies and challenges in decision-making.
- Specific reference has been added requiring planning policies to identify sites for commercial development for laboratories, gigafactories, data centres and digital infrastructure.
- Recognition of the necessity for infrastructure for growth of high-tech, data-driven industries and storage and distribution allowing for efficient handling of goods particularly for supply chains and decarbonisation.
- Provision for Green Belt boundaries to be altered where the Local Planning Authority (LPA) cannot meet housing or commercial development requirements after fully considering all other opportunities.
- Introduction of Grey Belt land which should be the first parts of Green belt land to be considered. For the purposes of plan and decision making, Grey Belt land is defined as “land in the Green Belt comprising Previously Developed Land and any other parcels and/or areas of Green Belt land which makes a limited contribution to the Green Belt’s purposes”.
- If development occurs on land within the Green Belt, at least 50% must be affordable housing and necessary infrastructure must be improved/provided.
- LPAs should endorse planning applications for all types of renewable and low-carbon developments. Significant emphasis should be placed on their contribution to renewable energy generation and achieving a net-zero future, including acknowledging the value of small-scale, community-led projects.
New Housing Targets for LPAs:
The Government has provided new housing targets for Local Planning Authorities (LPAs). For the period 2020-2023, the average annual net additions in Norfolk have increased as follows:
- Breckland DC: 749
- Broadland: 687
- Great Yarmouth (GY): 462
- King’s Lynn & West Norfolk: 295
- North Norfolk (N Norfolk): 380
- Norwich City Council (CC): 257
- South Norfolk DC (SNDC): 982
Howard Bailey, Commercial Property partner at Spire Solicitors, comments, “These proposed revisions to the NPPF signal a bold step towards addressing the housing crisis but they also raise important considerations for various stakeholders.”
“Firstly, the emphasis on identifying sites for commercial development and the need for growth of high-tech, data driven industries could drive significant growth in areas like the A11 corridor, which is well-positioned to benefit from such developments.”
“For landowners and farmers in Norfolk, the implications are multifaceted. The increase in energy projects and the emphasis on infrastructure development could lead to heightened demand for land, potentially driving up values. Yet, this must be balanced against concerns about food security and the preservation of agricultural land. Strategic planning and consultation with local authorities will be vital to navigate these changes effectively.”
“From a developer’s perspective, this announcement is likely to generate a surge of opportunities. The integration of new housing with necessary infrastructure such as retail, education, and healthcare facilities will drive demand across various sectors. This ripple effect could provide a substantial boost to the economy and create a range of investment prospects.”
“Nevertheless, the implementation of these plans will not be without challenges. Local authorities will need to carefully balance the need for new housing with the preservation of community character and green spaces. Additionally, the construction industry faces the challenge of addressing potential labour shortages and maintaining high building standards amidst a rapidly growing demand.”
“Overall, while the government’s plans are commendable for their ambition and potential impact, it will be essential for all parties involved to collaborate and adapt to ensure that the benefits are realised effectively and sustainably.”
Nutrient Neutrality Impact:
Nutrient neutrality continues to impact property development in much of Norfolk, and it remains to be seen whether this could lead to LPAs failing to meet housing delivery targets. We will look to provide an update on this in the near future.
At Spire Solicitors LLP, we understand the challenges and opportunities presented by these initiatives. Our Commercial Property team is dedicated to helping landowners, promoters, developers, investors and local authorities navigate the regulatory landscape of these new projects.
For more information on how we can assist with your commercial property needs, please contact our team at Spire Solicitors LLP.
