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Housebuilding and new towns programme announced by government

Lucy Dixon
31.07.2024

What has been described as the “largest housebuilding programme since the post-war period” starts today, with a focus on new towns – and key industry figures are highlighting the need for a bigger skilled workforce.

In a speech earlier this week, Deputy Prime Minister Angela Rayner announced mandatory local housing targets and an overhaul of the planning system, saying: “This government will build 1.5m homes that are high-quality, well-designed and sustainable. Decisions about what to build should reflect local views. But that should be about how to deliver new homes, not whether to.”

The programme of new towns is expected to create communities of at least 10,000 new homes each, with many significantly larger. While the programme will include new communities that are separate from existing towns, a larger number will be urban extensions and regeneration schemes.

These new communities will be governed by a New Towns Code – a set of rules that developers will have to meet to make sure new towns are well-connected, well-designed, sustainable and attractive places where people want to live, with the necessary infrastructure and public services.

Regeneration expert Sir Michael Lyons has been appointed to lead the New Towns Taskforce as its Chair, supported by housing economist Dame Kate Barker as Deputy Chair.

Deputy Prime Minister, Angela Rayner, said:

Our new towns will deliver housing fit for the future, shaping new communities with real character that people can be proud to call home.

With Sir Michael in the driving seat, I know his taskforce will work together with local people to help us decide on the right places for these new towns, delivering more homes, jobs and green spaces.

We are getting Britain building again and our long-term vision for a new generation of new towns will enrich the lives of working people in the years to come.

Responding to the announcement, Brian Berry, Chief Executive of the FMB, said:

The UK’s planning system has long been in desperate need of reform. Today’s announcement is a statement of intent which will be welcomed by small house builders. The return of national housing targets is good news as is the requirement for councils to demonstrate a five-year land supply for new housing.

There are fundamental issues with the UK housing system that need tackling to hit the Government’s ambitious targets. We are far too reliant on too few developers to build homes, with smaller developers pushed to one side, damaging competition, and consumer choice. The 50% affordable target on brownfield sites is a concern as many small developers can’t get housing associations to buy their section 106 social homes, meaning homes are going unbuilt. Without reform of the social housing system, this will hold back delivery. But behind all of this is a lack of builders to deliver these homes, without a serious plan to boost the vocational skills system in this country, we’ll be unable to deliver 1.5 million homes.

Cllr Peter Mason, London Councils’ Executive Member for Planning & Skills, said: 

There is no doubt that more homes are urgently needed in London and indeed around the country. Boroughs are strongly pro-housing growth and welcome the government’s focus on boosting housebuilding – including affordable homes and social housing. 

New flexibilities over how we use Right to Buy sales receipts are a big step in the right direction. Reducing restrictions will help ensure more money raised from council house sales is better invested locally in building replacement homes.

London boroughs have a good record in granting planning permission, but construction of new homes has seriously stalled in the capital and we’re keen to work with the government in addressing this. As well as improving the planning system, we also need action on the other major factors undermining housebuilding – including the lack of local infrastructure, construction skills shortages, and insufficient long-term funding for affordable homes.

Steve Melton, NAPIT Commercial & Compliance Director, talked about the need for more installers of low-carbon technologies. He said:

It is encouraging that the government is taking action to ensure more homes are built which will help people get on the housing ladder and also grow the economy across the country.

While there has been a lot of talk about whether housing is built on brownfield, green belt or even grey belt land, one thing is certain is that the houses are built using technologies such as heat pumps, solar panels and electric vehicle charge points to ensure efficiency and drive the UK to meet its Net Zero targets.

To do this, there also needs to be a supply of new, sufficiently skilled installers in the renewable electrical & microgeneration trades.