It’s been just over a month since the new government took power and housing has emerged as a key priority. A range of announcements around planning, construction and infrastructure have come thick and fast, with the government pledging to build 1.5 million homes over the next five years.

This comes as no surprise. The level of housing detail in Labour’s manifesto was far greater than other parties, and I know from PfH’s partnership with the National Housing Federation (NHF) that they and their chief executive, Kate Henderson have been working with Labour to develop carefully planned policy in this area for years.

We thought it would be useful to reflect on the policies relevant to our sector that have launched so far and look ahead to what’s planned. Here’s a summary of what we’ve learnt during Labour’s first month in government:

1. These are the key players

Let’s start with a who’s who of the new ministers making decisions around housing and construction.

Deputy prime minister Angela Rayner is now leading the Ministry of Housing, Communities and Local Government, renaming the department in a move to end what she termed “gimmicks and slogans”.

Speaking on the Rest is Politics podcast earlier this year, Angela Rayner said the one thing she wanted to be remembered for was “council houses. I’m going to build the next wave of social and council houses. Nice ones, green ones, ones you want to live in.”

Now in government, the new secretary of state for housing, communities and local government is staying true to her word, stating that “delivering social and affordable houses at scale is not only my No 1 priority to ensure everyone has a secure roof over their head. It is also a crucial step on the path to 1.5m homes, kickstarting the sector out of this slump.”

As housing minister, Matthew Pennycook, Labour MP for Greenwich and Woolwich will be responsible for delivering on this policy. He has promised to “turbocharge” house building.

Former Bank of England economist Rachel Reeves has also put housing at the top of her to-do list. Within days of becoming chancellor, she announced mandatory housing targets and met with housebuilders, infrastructure and utilities companies to discuss planning reform.

2. Local housing targets are back

One of Labour’s flagship housing policies is the reintroduction of compulsory house-building targets for local authorities, part of a “new growth-focused approach” to the planning system which will include reform of the National Planning Policy Framework.

 

Local green belt boundaries will be reviewed, and brownfield – along with ‘grey belt’ such as disused car parks and wasteland on protected land – will be prioritised for development.

 

3. Planning will be streamlined

Another early announcement was the creation of a taskforce to accelerate stalled housing sites.

Council capacity will also be increased with the recruitment of 300 additional planning officers.

There will also be changes to direct ministerial intervention around planning, especially when “potential gains for the regional and national economies warrant it.”

Loal authorities, Homes England and local development corporations will no longer need authorisation from a cabinet minister when buying land for social housing and other uses through a compulsory purchase order (CPO).

The Planning and Infrastructure Bill, announced in July’s King Speech will also push forward new legislation to boost renewable energy and upgrade the national grid.

4. Look out for ‘land value capture’

When local authorities give planning permission on land, its value increases steeply. This means that sites earmarked for development can become too expensive for housing associations and councils to develop.

Land value capture (LVC) is a way for communities to benefit from increases in land value, not just landowners. Labour is planning to extend LVC beyond existing Section 106 agreements and community infrastructure levies.

 

5. Housing responsibilities will be devolved

The English Devolution Bill, also announced in the King’s Speech, will ensure that more regions can harness a decentralised approach. Power and resources will be transferred to cities and counties so they can decide what’s best for their economy, including ways of tackling local housing needs.

6. Leasehold flats to be banned

Labour promised to “bring the feudal system of leasehold to an end,” in its draft Leasehold and Commonhold Reform Bill. Over 100,000 leasehold titles, linked to approximately 500,000 leasehold owners are owned by the 50 largest housing associations in this country, so these reforms will impact our sector. Leaseholders will have greater rights to extend their lease, buy their freehold or manage their building.

7. Renters’ rights will be strengthened

Section 21 ‘no fault’ evictions – where social landlords repossess properties from assured shorthold tenants without having to establish fault on the part of the tenant – will be abolished. The Renters’ Rights Bill will also extend Awaab’s Law and the Decent Homes Standard to the private rented sector.

Future plans

To achieve what Labour have termed the “biggest increase in social and affordable housebuilding in a generation”, a step change will be needed in capacity and productivity. We will update PfH members on future developments, including policies around construction skills and modern methods of construction, which will both have important roles to play.

Hopefully this whistle stop tour of new housing announcements has been helpful. More detail on the different housing Bills will be announced in coming months along with the chancellor’s first budget – set to take place in October. Watch this space for further updates.

Did you know

In the run-up the General Election, the National Housing Federation campaigned tirelessly on many of these issues. You can find out more here and check out their News & Blogs section for policy updates.