Strategies for delivering 1.5 million new homes
The government is pursuing several key strategies to achieve its housing target, including:
Grey Belt: Redefining Green Belt boundaries
A cornerstone of the government’s strategy is the introduction of a new “Grey Belt” category within the National Planning Policy Framework (NPPF). Grey Belt encompasses previously developed land in the Green Belt and areas that no longer serve core Green Belt purposes. This shift opens opportunities for sustainable development on land that was previously off-limits. For developers, Grey Belt policies present an exciting chance to unlock sites with significant potential. Housebuilders are expected to accelerate planning applications for such areas, knowing that government support increases their likelihood of approval, even on appeal.
New Towns and Urban Extensions
New towns, defined as developments of 10,000 homes or more, form another crucial element of the government’s plan. These will primarily consist of sustainable urban extensions to existing towns and cities. The New Towns Taskforce, an independent body appointed by the government, has until July 2025 to identify suitable sites, which are likely to be close to railway lines and key road networks.
Planning system reform: A slow path to change
Despite promises of reform, the planning system remains a bottleneck. Over the past 30 years, multiple reforms have failed to deliver significant improvements in housing delivery. The slow pace of change continues to frustrate developers, reinforcing the importance of exploring complementary strategies like Grey Belt development and new towns.
Opportunities for Landowners and Developers
While the push for new housing creates opportunities, challenges such as increased construction costs, a flat housing market, and higher s.106, CIL, and affordable housing requirements will depress land values. That said, landowners may find it easier to secure planning approvals. Howkins & Harrison are leaders in the development sector in the region. Over 200 sites under option for clients, and at least 10 sites expected to secure planning consent in the next 12-18 months, the coming years are poised to be busy.
Revolutionising Renewable Infrastructure
The government’s commitment to improving energy infrastructure through solar, wind, and battery storage (BESS) projects is another key focus. With strong powers driving renewable energy projects, recent reforms aim to streamline grid connection processes and accelerate the shift to cleaner energy sources.
The UK government’s ambitious target to deliver 1.5 million new homes by the end of the current parliamentary term in 2029 has sparked widespread discussion across the development and infrastructure sectors. While the goal is bold, the consensus among industry experts is that it is unlikely to be met without significant changes to existing strategies. With a blend of innovative approaches and policy
reforms, there’s potential for progress—but challenges remain.
Grid Connection Reform
The National Energy Systems Operator (NESO) has overhauled the grid connection process, previously
hampered by a “first-come, first-served” approach that allowed many non-viable projects to clog the queue. New rules, likely effective by April 2025, will require developers to secure land rights for projects to retain their place in the queue. This reform aims to prioritise viable projects, bring connection dates forward, and drive renewable energy production.
Solar and Battery Storage: A Bright Future
Solar and BESS projects remain attractive due to government support and their ability to increase
renewable production quickly. Current terms for solar options see rents reaching £1,000-£1,200 per acre.
For BESS, rents are even higher, ranging from £1,800 to £2,200 per MW, in the region of £30,000 per acre.
Wind power, while critical to the UK’s energy transition, faces geographical constraints, particularly in the
Midlands, where residential density and limited space make large-scale projects challenging.
Green Hydrogen: The Next Frontier
Green hydrogen holds promise as a renewable fuel for heavy industry and transportation. However, due to its need for proximity to end-users, large-scale green hydrogen plants are unlikely to feature prominently in the region
Conclusion: Seizing the Moment
Whether in housing or energy, the current policy environment presents both challenges and opportunities for developers, landowners, and investors. By staying informed and agile, landowners can position themselves to thrive amidst these changes. From the introduction of Grey Belt to grid connection reforms and renewable energy expansion, the next few years promise to reshape the UK’s development and infrastructure landscape.
