The Government published its much anticipated updated National Planning Policy Framework yesterday. Landmark changes include the re-introduction of mandatory housing targets, defining ‘grey belt’ land in national planning policy for the first time, and new rules to ensure that local authorities produce up-to-date local plans.
For purposes of local-plan making, the NPPF will take effect from 12 March 2025 but for purposes of decision making the policies are material considerations which should be taken into account from the day of publication (12 December 2024). Local authorities will have 3 months from today to progress local plans that are currently in development and ensure they are up to date. Where plans based on old targets are still in place from July 2026, councils will need to provide for an extra year’s supply of homes in their pipeline – six years instead of five.
Key to the framework is the reintroduction of mandatory housing targets which, with a slightly adjusted standard methodology, increase the total annual housing delivery target to 370,000 homes a year. The Government has framed this figure within the restated aim of delivering 1.5 million homes in total by the end of this Parliament. As with the consulted standard method, areas with the highest unaffordability for housing and greatest potential for growth will see housebuilding targets increase.
Grey belt is defined for the first time in the NPPF as land in the Green Belt comprising previously developed land and/or any other land that does not strongly contribute to checking the unrestricted sprawl of large built-up areas, preventing neighbouring towns merging into one another, or preserving the setting and special character of historic towns. This new broader definition will make it easier for developers to build on disused sites.
The NPPF also defines the Government’s ‘Golden Rules’ for developing Green Belt land – requiring developers to provide the required infrastructure and a premium level of social and affordable housing. One significant change from the previously consulted proposals of a 50% affordable housing requirement is that this has dropped to a 15% government premium for affordable over and above the local authority requirement with a cap of 50%. Viability is also mentioned in this context showing that ‘normal’ rules on affordability will still apply.
The Government has emphasised that their approach remains ‘brownfield-first’ but the NPPF requires local authorities to review their greenbelt boundaries to identify and prioritise grey belt land in order to meet the new targets.
In order to address concerns about capacity that have come from local authorities in the lead up to the publication of the NPPF, the Government is also providing £100 million next year to hire more planning officers, staff and consultants.
The Government has been clear that these changes alone will not deliver 1.5 million homes by the end of this Parliament. Speaking at the despatch box today, Housing Minister Matthew Pennycook said that the private sector will need to bring forward sites to hit the Government’s targets. While the new NPPF will provide clarity and certainty, it does not contain the incentives needed to Get Britain Building as the Government claims.