Planning Reform 2024: Key Implications for Developers and Landowners

The planning landscape in the UK is poised for a major shift in 2024, following the proposed updates to the National Planning Policy Framework (NPPF). With the new Labour government firmly in power, their focus on revitalising the economy through a substantial boost in infrastructure development has led to several new planning reforms aimed at unlocking growth potential, streamlining housing delivery, and addressing the country’s ongoing housing crisis.

For developers, landowners, and local authorities, these reforms present both challenges and opportunities. The proposed changes signal a significant overhaul of current planning rules, pushing for more ambitious housing targets and providing local authorities with new powers and responsibilities. This article will explore the most critical aspects of the Planning Reform 2024 and what it means for stakeholders looking to capitalise on development opportunities.

1. Labour’s Vision: Accelerating Economic Growth and Tackling the Housing Crisis

At the heart of the Planning Reform 2024 is Labour’s commitment to kickstart economic growth by addressing the housing crisis. The UK is facing a severe shortfall in housing supply, with demand consistently outstripping the available stock. In 2022-2023, only 234,000 homes were built, significantly below the previous target of 300,000 homes per year. Labour plans to raise this target to 370,000 homes per year, a bold move aimed at addressing the critical housing shortage.

One of the key measures being introduced is the reinstatement of mandatory housing targets. This reverses the advisory approach taken by the previous government, ensuring that local authorities are held accountable for delivering housing in line with national targets. These mandatory targets will be enforced through new mechanisms, incentivising councils to proactively identify suitable sites for development and update local plans to reflect current housing needs.

For developers, this presents an opportunity to engage with local authorities and capitalise on the surge in housing demand. Bartons Planning & Development Consultancy has extensive experience navigating local planning systems and can provide valuable insights on how best to align development proposals with these new targets.

2. New Towns Taskforce: Large-Scale Development Opportunities

Labour’s ambitious proposal to create a new generation of New Towns represents a significant opportunity for developers. These new towns, each consisting of at least 10,000 homes, are expected to be strategically located along major transport corridors, providing excellent connectivity to larger urban areas. The New Towns Taskforce, set up to oversee the designation and development of these sites, will play a critical role in unlocking large tracts of land for development, potentially offering developers unprecedented opportunities for large-scale projects.

This marks the first time since the 1970s that such a large-scale approach to housing development has been proposed, and it is expected to significantly boost the supply of new homes across the country. Developers will need to work closely with local authorities and the New Towns Taskforce to ensure that their proposals align with government priorities, particularly in terms of sustainability, infrastructure, and affordable housing.

3. Mandatory Housing Targets and Local Plan Updates

A key pillar of the Planning Reform 2024 is the push to bring all local councils in line with up-to-date local plans. Currently, only about one-third of councils have plans that are less than five years old. Outdated plans have long been a barrier to development, as they do not reflect current housing needs or market conditions.

Labour’s reform requires all local councils to update their local plans to reflect the new mandatory housing targets. These targets will be based on a recalibrated Standard Method for calculating housing need, which incorporates a stronger housing affordability multiplier. This will shift the focus of housing delivery to areas where affordability is a major issue, with some regions in the North seeing a significant increase in their housing targets, while London’s target is expected to decrease.

For developers, this is a crucial moment to engage with local planning authorities as they update their local plans. Ensuring that potential development sites are included in these updated plans will be essential to securing planning permission. Bartons can assist clients in identifying opportunities and guiding projects through the complex planning process to maximise the chances of success.

4. Green Belt and Grey Belt: New Opportunities for Land Use

One of the more controversial aspects of the Planning Reform 2024 is the government’s proposed approach to the Green Belt. While the Green Belt has long been protected from development, Labour’s NPPF introduces the concept of the Grey Belt, opening up land within the Green Belt for potential development under certain conditions.

The Grey Belt is defined as land within the Green Belt that comprises previously developed sites, or land that makes limited contributions to the purposes of the Green Belt, such as preventing urban sprawl. This land could include disused industrial sites, car parks, or other areas that have lost their aesthetic or functional value. Local authorities will be encouraged to prioritise previously developed land (PDL) within the Grey Belt for housing and infrastructure projects.

For landowners holding assets within the Green Belt, the designation of Grey Belt land could unlock significant development potential. However, such developments will still require careful planning to ensure compliance with the NPPF’s environmental and community-focused requirements, including the provision of affordable housing and improvements to local infrastructure.

Bartons has extensive expertise in navigating the complexities of Green Belt policy and can help landowners assess whether their sites may qualify as Grey Belt and guide them through the planning process to maximise the value of their land.

5. Infrastructure and Renewable Energy Development

The Planning Reform 2024 also places a strong emphasis on infrastructure and renewable energy projects. The NPPF proposes reforms to streamline the approval process for Nationally Significant Infrastructure Projects (NSIPs), shifting responsibility from local planning authorities to the Secretary of State. This change aims to accelerate the delivery of key infrastructure projects, such as transport links, digital infrastructure, and renewable energy installations.

For developers involved in solar and onshore wind projects, the government is increasing the threshold for projects subject to NSIP rules, which should make it easier to get planning approval for smaller projects. This is particularly important for developers looking to invest in the rapidly growing renewable energy sector, as the UK transitions towards a net-zero economy.

Bartons can assist developers in navigating the NSIP process, ensuring that their projects are submitted to the appropriate authorities and that all planning requirements are met. Our commercial acumen and deep understanding of planning legislation can help streamline the development of renewable energy projects, ensuring timely delivery and maximising returns.

6. Local Government Powers and Citizen Engagement

The Planning Reform 2024 enhances the powers of local authorities, particularly in terms of land acquisition and compulsory purchase orders (CPOs). Under the new rules, councils will have greater flexibility to acquire land for affordable housing projects, with a focus on ensuring that payouts to landowners are fair but not excessive. This could potentially impact landowners with sites earmarked for affordable housing development.

Moreover, the new NPPF prioritises citizen engagement, requiring local authorities to actively involve the public in decision-making processes. While this may add an extra layer of complexity to planning applications, it also presents an opportunity for developers to build community support for their projects, which can be critical to securing planning approval.

Conclusion: Navigating the Planning Reform with Bartons

The Planning Reform 2024 represents a seismic shift in the UK’s planning landscape, with far-reaching implications for developers, landowners, and local authorities. The introduction of mandatory housing targets, the designation of new towns, the creation of the Grey Belt, and the streamlining of infrastructure approvals all signal a clear direction towards growth and development.

Bartons Planning & Development Consultancy is uniquely positioned to help clients navigate these changes. With our deep expertise in both planning and commercial development, we can guide you through the new regulatory environment, ensuring that your projects not only comply with the latest planning policies but also deliver maximum returns.

Contact Us today to discuss how Bartons can help you capitalise on the opportunities presented by the Planning Reform 2024. Whether you’re a landowner looking to unlock the value of your property or a developer seeking to navigate the complexities of the new NPPF, our team is ready to assist you in achieving your development goals.