The deputy prime minister, Angela Rayner has revealed a newly reformed National Planning Policy Framework which aims to deliver 1.5m new homes over the next five years.
The government has confirmed new planning rules including the return of mandatory housing targets – ‘5-year plans’ – and the prioritising of its newly created “grey belt” land.
Under the plans, introduced through an updated National Planning Policy Framework, local authorities will be told they must play their part to meet housing needs by reaching a new ambitious combined target of 370,000 homes a year. In addition to the targets, the new rules will see a new approach to the green belt which will require councils to review their green belt boundaries to meet targets, identifying and prioritising lower quality “grey belt” land.
Additionally, any development on the green belt must meet new requirements, dubbed the “golden rules”, which require developers to provide the necessary infrastructure for local communities, such as nurseries, GP surgeries and transport, as well as a “premium level” of social and affordable housing as well as ‘social rent’ housing.
The government says that reform is “desperately needed if we are to build 1.5 million homes. Under the current planning framework just under one-third of local authorities have adopted a local plan within the last five years and the number of homes granted planning permission has also been allowed to fall to its lowest level in a decade. That has to change.
This new ‘my way or the highway’ stance towards local government by central government includes the following features:
- Local authorities must commit to timetables for new plans within 12 weeks of the updated NPPF or ministers will use intervention powers to ensure plans are put in place.
- 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.
- Where no existing plan is in place the presumption in favour of sustainable development would apply alongside the existing safeguards in national policy around the provision of affordable housing, design quality, and sustainability of location.
Soundbites: Political and Industry Reaction
Prime Minister Sir Keir Starmer said: “For far too long, working people graft hard but are denied the security of owning their own home. But with a generation of young people whose dream of homeownership feels like a distant reality and record levels of homelessness, there’s no shying away from the housing crisis we have inherited.”
“We’re taking immediate action to make the dream of homeownership a reality through delivering 1.5 million homes by the next parliament and rebuilding Britain to deliver for working people.”
Timothy Douglas, head of policy and campaigns at Propertymark, said: “An infrastructure-first approach is key to delivering the homes the country desperately needs. Whilst mandatory targets focus minds towards achieving a goal, a one-size-fits-all approach to housing delivery will not be enough if the UK Government are to hit their ambitious housing targets.
Richard Pike, chief sales and marketing officer at Phoebus, said: “I have yet to meet a single person in our industry who believes that we will hit the housebuilding target of 1.5 million homes over the next five years. Lack of employees in the construction sector, increased materials costs and, of course, the lack of non-greenfield sites are all pretty major problems!
“That said, on the plus side, if the plans are embraced by industry and momentum gathers pace, we should see some invigoration in local business and the overall economy.”
Peter Canavan, Partner, Carter Jonas (Oxford) comments: “What we need is some certainty, so a policy framework that can sustain for more than a year would be positive for everyone (although we expect more legislation, and potentially more changes to the NPPF next year). What we don’t need continuous tinkering – we want to all settle into an adjusted system and deliver new homes.
“There is a lot to be commended in this new NPPF, but there are still some missed opportunities.”
Anthony Codling, head of European housing and building materials research at RBC Capital Market, said: “The Labour Party should be congratulated on the speed at which it has delivered on its planning reform promises. We will hit the ground running in 2025 with a new lean, mean and agile planning machine. The ‘Presumption in Favour of Sustainable Development is Back’ and for Local Authorities it’s now a case of my way or the highway – In the new world there is no room for Bob the Blocker if local plans don’t add up planning decisions will be taken by Keir the Builder. The message to local authorities is clear, step up or step aside.”
Simon Brown, CEO of Landmark Information Group, comments: “The publication of the updated National Planning Policy Framework (NPPF) is a significant moment to tackle long-standing challenges in housing and infrastructure to deliver the Government’s ambitious 1.5m home target.
“However, systemic barriers—such as fragmented processes, overburdened professionals, and limited information-sharing—still impede progress. By leveraging data more effectively, we can identify demand hotspots, streamline development, and ensure homes are built in the right locations, supported by the necessary infrastructure to foster thriving communities.”
Michelle Quan, Director, Boyer comments: “It is both a surprise and a disappointment that paragraph 14, relating to Neighbourhood Plans, remains unchanged. Perhaps one of the few December 2023 changes which has survived the revisions.”
Ian Barnett, national land director, Leaders Romans Group comments: “What a difference a year makes. The NPPF changes announced provide and new framework for the industry to work to and a flurry of activity on LinkedIn as everyone seeks to understand the key points and how they will affect their projects.
“There have been many grand announcements in my time in planning and development. The priority has always been to build enough houses for the country’s population in the right places in a manner that protects the most valuable landscapes and environmentally sensitive areas.”
What is ‘Grey Belt’ Land
The government’s new approach to housing land supply and building focuses on reclassification of some land from ‘Green Belt’ to ‘Grey Belt’, but what exactly is ‘Grey Belt’ land?
The government itself has stated that the Grey Belt would be, “A new class of land to ensure grey and poor-quality parts of the Green Belt are prioritised, and that any development benefits local communities’ and also that, ‘Poor-quality and ugly areas of the Green Belt should be clearly prioritised over nature-rich, environmentally valuable land”.
However, this definition of the Grey Belt lacks clarity, any definition of the form of evidence required or wide-ranging support. It deviates from the very purpose of the Green Belt which was all about the ‘preservation of openness’. The definition of Green Belt does not typically consider how ‘ugly’ or what ‘quality’ the land is.
In addition, the concept of Grey Belt land seems to contradict Planning Policy Guidance itself, which requires that “Boundaries should not be amended or development allowed merely because the land has become derelict’.
The revised NPPF defines Grey Belt land as Green Belt land that only makes a ‘limited contribution’ to the five purposes of the Green Belt: to check the unrestricted sprawl of large built-up areas; to prevent neighbouring towns merging into one another; to assist in safeguarding the countryside from encroachment; to preserve the setting and special character of historic towns; and to assist in urban regeneration, by encouraging the recycling of derelict and other urban land.
However, the identification of land as having limited ability to meet the definition of the Green Belt has been recognised previously: Green Belt that makes a limited contribution has been referred as ‘poorly performing Green Belt’ or ‘low-quality Green Belt’.
Is this therefore little more than a new label?
The newly reformed National Planning Policy Framework (NPPF) and the return of housing targets bring both challenges and opportunities for property investors and landlords. With the focus on “grey belt” land and infrastructure-first development, Kent areas such as Dover, Ashford, and Folkestone could see significant changes in housing supply. Staying informed and proactive is essential to capitalising on these developments, whether you’re growing your portfolio or adapting to the shifting landscape.
For Kent landlords and property investors, understanding how these policies impact local markets is crucial to making informed decisions and maximising returns.
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With a deep understanding of the Kent housing market, we can help you identify opportunities created by these policy changes—whether it’s sourcing properties in key development zones or ensuring your investments deliver long-term returns.
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