John Howard, the Managing Director of John Howard Property, discusses how to build a better housing policy for the UK
The UK’s housing crisis is a towering challenge that successive governments have failed to tackle thoroughly – leaving the consequences of underperforming policy to pile up. Indeed, whilst the new National Planning Policy Framework (NPPF), announced last December, aims to address rising demand, it lacks the radical action needed to lay solid foundations for growth.
Housing targets and tensions
The new NPPF gives local authorities just three months to determine where 370,000 new homes a year will be built – a daunting task that raises major concerns. Councils failing to create roadmaps will see the government deciding for them – and, with local elections looming in May, those that do plan ahead may face resistance and even policy reversals as opposing parties vie for control.
This short-term, top-down approach risks undermining local decision-making, fuelling friction between communities and central government. At this stage in the crisis, however, political ambitions – local or national – must not obstruct progress, with a more collaborative framework needed to give councils more time and resources to plan new builds.
The grey belt illusion
Another concern with the new NPPF is that it proposes using 15% of the green belt – now rebranded as “grey belt” – for housing. This includes 78,000 hectares of already-developed land, allowing homes to be built closer to existing towns and reducing calls for further amenities. However, this reclassification is more semantics than substance, as building on previously developed green-belt land is far from new, with the “grey belt” term doing little to disguise the lack of innovation.
The social housing requirement
If anything, the new NPPF reduces the freedoms to build on the abovementioned land by continuing the 30-50% social housing requirement – even for smallscale developers who might avoid projects due to high costs and low profitability. Contaminated sites and demolition expenses often make such projects enviable, rendering this policy more symbolic than practical.
Whilst an ideal housing recovery strategy wouldn’t prioritise profit, financial realities must be acknowledged. Scrapping the social housing requirement for small developers and incentivising projects on viable brownfield sites would encourage greater activity, as streamlined processes make these projects more attractive economically.
Crisis in numbers
Even with these changes, however, the government’s target of 370,000 new homes a year falls short. Experts estimate at least 500,000 homes are needed annually to meet demand – and missed targets only compound over time, worsening the gap between need and availability. Provisions like allowing extra storeys on homes may boost numbers in high-value areas like London, but offer little benefit elsewhere, where undeveloped land is abundant, and construction costs outweigh added value.
The UK hasn’t built more than 360,000 homes in a single year since 1968 – making it clear that if we are to move away from a numerical promise into real-world progress, proposed policies must bring greater dynamism and urgency.
Three new ways to unlock housing supply
To truly tackle the housing crisis, Labour – and any future governments – must remove barriers to construction and conversion projects – with the following three solutions standing out among the many possible actions for breaking new ground:
1. Fast-track conversions
Current rules require vacant commercial properties to be marketed for up to two years to prove there’s no commercial demand before permitting residential conversion. This puts unnecessary delays on thousands of potential housing units. Streamlining approvals for vacant properties, including disused care homes, could unlock much-needed housing stock immediately.
2. Cut the red tape on pre-conditions
Similarly, developers are often held back by as many as 35 pre-conditions, on anything from minor infrastructure to landscaping – all requiring sign-off before construction can begin. Simplifying or staging these requirements would significantly shorten timelines, enabling faster starts on critical projects.
3. Revive the Business Expansion Scheme
Finally, governments must look back in order to look forward. The Business Expansion Scheme (BES) introduced in the 1990s, for instance, incentivised investment in rental properties by offering 40% tax relief to investors. Suppose we are serious about truly overhauling the UK housing sector. In that case, such policies must be revised and reinstated, with governments drawing on former successes to encourage high-net-worth individuals to invest in conversions and construction to increase the supply of rental housing. Whilst politically contentious, particularly under a Labour government, this approach would inject much-needed capital into the housing market.
Where are the planners?
One of the most glaring omissions in the new NPPF, however, is the lack of emphasis on expanding the planning workforce. The government has allocated £100 million to consultants but still needs to double the number of planning officers for success. Recruiting and retaining these specialists, who often migrate to the private sector for better pay, is crucial. Without skilled planners, even the most ambitious policies will falter.
A crisis worth fixing
The UK housing crisis demands bold, imaginative solutions that go beyond rehashed policies. By embracing measures like fast-tracking conversions, cutting red tape and incentivising investment, the government could create the conditions necessary to build the homes our country desperately needs. Failing to act decisively now will only cement the crisis further. It’s time to stop patching cracks and start building a UK housing policy that truly delivers.
