December summary of housing and planning reforms for LAs and the industry

[edit] Letters of principle changes

On 12 December 2024, following a consultation, the UK government revised the National Planning Policy Framework along with some other changes to the planning system. Shortly after the Deputy prime minister Anglea Rayner wrote to local authority leaders and metro mayors in England as well as to various housing industry stakeholders in explanation, setting out the principal changes and reasoning behind them. Here is a brief summary of some of these changes (the original letters can be found via the links above)

[edit] Summary of Housing and Planning Reforms

The Government has unveiled an ambitious and comprehensive set of reforms to tackle the UK's entrenched housing crisis. With housing costs consuming a third of private renters' incomes, nearly 160,000 children in temporary accommodation, and planning permissions at a decade-low, these measures aim to deliver 1.5 million homes this Parliament while ensuring affordability and infrastructure support.

[edit] Revised National Planning Policy Framework (NPPF)

A revised NPPF introduces pro-growth reforms, including increased housebuilding targets and a modernised Green Belt policy. The new framework reflects feedback from over 10,000 consultation responses and emphasises addressing the housing crisis as a national priority.

[edit] New Standard Method for Assessing Housing Needs

The Government has replaced outdated population projections and the “urban uplift” approach with a method based on existing housing stock and affordability multipliers. The national target is now 370,000 homes annually, with adjustments to better target areas facing severe affordability pressures.

[edit] Green Belt and Land Allocation

A modernised Green Belt policy prioritises brownfield development, then “grey belt” (low-performing land), while protecting higher-performing Green Belt land. Developers can only build on Green Belt land if they deliver affordable housing, infrastructure, and public green spaces. Affordable housing requirements will include a 15% premium over existing standards, up to 50%, with safeguards to avoid making sites unviable.

[edit] Universal Coverage of Local Plans

All local authorities must adopt local plans, with transitional measures allowing plans at advanced stages to progress. Councils must provide updated plan timetables and meet at least 80% of new housing needs to ensure alignment with the new NPPF.

[edit] Increasing Affordable Housing and Build-Out Rates

The reforms prioritise affordable housing, particularly Social Rent homes. Mixed-tenure developments will be encouraged, and larger sites will require upfront build-out trajectories to ensure timely delivery. Developers failing to meet targets may face penalties, including application refusals. A new clearing service by Homes England aims to facilitate Section 106 affordable housing delivery.

[edit] Infrastructure and Sustainability

The NPPF includes stronger provisions for public infrastructure, such as healthcare, education, and transport, to create sustainable communities. Support for modern economy infrastructure (e.g., giga factories and laboratories) will be streamlined through local plans and the Nationally Significant Infrastructure Projects regime.

[edit] Climate and Environmental Focus

The NPPF prioritises climate change adaptation and renewable energy deployment. Onshore wind and solar energy projects face fewer restrictions, and flood risk planning is strengthened. Policies supporting wildlife protection and sustainable drainage systems are also included.

[edit] Planning Capacity and Fees

To address resourcing challenges, over £14 million in grant funding will support local authorities in updating plans and conducting Green Belt reviews. Planning fees will increase, generating over £50 million annually, with a shift toward cost recovery for local authorities.

[edit] Commitment to Delivery

The reforms aim to boost housing supply, affordability, and infrastructure while ensuring high-quality development. Collaboration with local leaders, developers, and stakeholders will be essential to achieving the Government’s ambitious targets.

These measures reflect a commitment to building a fairer housing system, ensuring that a decent, affordable home becomes a right for all, not a privilege for a few.