July 1, 2024
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Politics

Labour Party Prepares Swift Planning Reforms Post-Election to Boost UK Housebuilding

Keir Starmer’s Labour Party is gearing up for a series of rapid planning reforms aimed at significantly increasing housebuilding in the UK if they win the upcoming election. Starmer’s government plans to implement these changes swiftly over the summer, utilizing written ministerial statements, statutory instruments, and directives to local planning authorities.

The Labour Party intends to restore mandatory local housing targets within the National Planning Policy Framework to the levels before the Conservative administration’s 2022 changes. This strategy bypasses the need for primary legislation, allowing for immediate action to foster economic growth, which in turn provides more flexibility for public service spending over the five-year Parliament.

Recent polls indicate a strong likelihood of a Labour victory on July 4, shifting focus to Starmer’s post-election plans. Central to Labour’s manifesto is a commitment to build 1.5 million homes over five years, averaging 300,000 annually—a target previous Tory governments have failed to meet. A senior party official emphasized that Starmer prioritizes a “revolution in planning” as a key economic growth driver and wealth redistribution mechanism.

Angela Rayner, Labour’s deputy leader, is determined to implement reforms immediately to meet housing targets by the next election. A significant portion of new homes will be constructed toward the end of the Parliament due to the current state of housing policies inherited from the Tories.

However, Starmer anticipates political battles against vested interests and the “not-in-my-back-yard” (NIMBY) opposition. He has publicly vowed to challenge NIMBYs and support builders, stating his readiness to make enemies to advance housing development.

While Starmer did not specify timelines for leasehold system reforms or new renter protections, he assured these could be enacted “speedily” if Labour takes office. Enhanced ministerial powers may expedite planning processes, with the potential for more frequent “call-ins” of planning applications by the secretary of state.

Labour’s manifesto also includes a proposal for mortgage guarantees to assist first-time buyers, with the state acting as a guarantor for those unable to save large deposits. This aims to extend the current government scheme offering 95% loan-to-value mortgages.

The UK’s planning system, criticized for its complexity and inefficiency, has seen a decline in local council capacity and a drop in major planning applications. Labour’s proposed reforms seek to address these challenges, though experts like Zoe Bignall from CBRE Group Inc. remain skeptical about their sufficiency in boosting housing supply given the current resource constraints in planning departments.

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