Government ditches mandatory housebuilding targets

The Government has officially watered-down proposals for mandatory local housebuilding targets as it brings its flagship Levelling Up and Regeneration Bill back to the House of Parliament today.

It has seen off a backbench rebellion by stating that while housing targets remain, they will be advisory and are a starting point with “new flexibilities to reflect local circumstances.”

The Department for Levelling Up, Housing and Communities said building targets remain an important part of the planning system and promised a consultation on how these can better take account of local density.

Housing Secretary Michael Gove has also asked the Competition and Markets Authority to consider undertaking a market study on housebuilding. 

A statement from DLUHC said: “Buying a home is one of the most important decisions a family takes, with huge financial implications, so making sure this market is truly competitive and working in the interests of consumers is of the highest importance.”

The Government said its latest measures in the Bill will strengthen its commitment to building enough of the right homes in the right places with the right infrastructure, ensuring the environment is protected and giving local people a greater say on where and where not to place new development. 

Housing targets remain an important part of the planning system and the government will consult on how these can better take account of local density.

Alongside measures in the Bill to tackle slow build out by developers, the Government will also consider new financial penalties for companies failing to deliver housing despite having planning approval and give councils powers to refuse further permission across their area.

The Bill already includes power for councils to apply a council tax premium of up to 100% on empty and second homes in areas. But given concerns local people are often forced out of the market by short term lets, the government will go further by establishing a registration scheme for these properties.
 
The Government will also consult on whether planning permission should be required for new short term lets, especially in tourist hotspots.

It said it will also ensure valued landscapes, such as National Parks, Areas of Outstanding Natural Beauty and the Green Belt, remain protected through robust national and local planning policies.

Gove said: "We have an urgent need in this country to build more homes so that everyone - whether they aspire to home ownership or not - can have a high-quality, affordable place to live. But our planning system is not working as it should.

“If we are to deliver the new homes this country needs, new development must have the support of local communities. That requires people to know it will be beautiful, accompanied by the right infrastructure, approved democratically, that it will enhance the environment and create proper neighbourhoods.

“These principles have always been key to our reforms and we are now going further by strengthening our commitment to build the right homes in the right places and put local people at the heart of decision-making.

“I’m grateful to colleagues across the House for their hard work and support to drive forward these much-needed changes to create a planning system that works for all.”