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1.5 million homes: Can the Government's ambitious milestone be achieved?

09 April 2025

Central to the government’s growth agenda is its “relentless focus” on getting Britain building again. At the heart of Labour’s social and economic reform agenda – and forming an important and well-publicised milestone in its December 2024 ‘Plan for Change’ – is the government’s plan to deliver 1.5 million homes over this Parliament. 

Planning reform has been a key area of focus in this regard. Updates to the National Planning Policy Framework (NPPF) were consulted on in July 2024 (just weeks after Labour took office) and the changes were published in December 2024. Amongst other things, the NPPF updates reintroduced mandatory housing targets, and the ‘grey belt’ concept was put on a policy footing for the first time paving the way for a new “common-sense approach” to development in the green belt. Updated Planning Practice Guidance has since been published providing further details on how grey belt land is to be identified and under what circumstances it can be released.  

Alongside the updated NPPF, a New Homes Accelerator was launched to help unblock large-scale housing developments that are stuck in the planning system, and an independent New Towns Taskforce was established as part of the government’s long-term vision to create the next generation of new large-scale communities of at least 10,000 homes each.  

The Planning & Infrastructure Bill was then introduced to Parliament in March 2025. See here for our summary of the Bill. The changes brought about by the Bill seek to improve certainty in decision-making in the planning system (e.g. through the setting (and ringfencing) of planning fees locally, not nationally) and introduce new mechanisms for cross-boundary strategic planning at a sub-regional level.  

It is clear to see that the government is moving forward with its growth agenda in this area through targeted policy and legislative interventions, and the general feeling amongst planning and development professionals is that the changes are positive. However, there remains concern that notwithstanding the quick action and ambition shown by Labour, more government support is needed to address the resourcing constraints faced by planning departments.  Cost recovery mechanisms and the ringfencing of development management fees will make some difference, but without addressing the desperate skills shortages within local authorities (see here  for more detail), the system will continue to struggle to meet demand.  

If you would to discuss like the contents of this article further, please contact Alistair Paul

Further Reading