In a significant policy shift, the newly formed Labour government has unveiled plans to address the UK’s housing shortage by targeting brownfield and so-called ‘grey belt’ land for development. This initiative is a crucial part of Chancellor Rachel Reeves’ strategy to meet ambitious housing targets set by the government.
The ‘grey belt’ term, coined by Labour leader Sir Keir Starmer, refers to land of “poor quality” that has already been developed within the green belt. Examples of such land include disused car parks and derelict industrial sites. The aim is to utilise these areas, which are often underused and neglected, rather than encroaching on untouched green spaces.
The precise extent of this ‘grey belt’ land remains unclear. However, research by estate agents Knight Frank suggests there could be as many as 11,000 previously developed greenfield sites that qualify as ‘grey belt’. This estimate provides a glimpse into the potential scale of development possible under the new policy.
The move is part of Labour’s broader effort to streamline the planning process and expedite housing development. By focusing on already developed but currently unused land, the government hopes to alleviate some of the pressures on the green belt while addressing the urgent need for new homes.
Further details on this initiative will be revealed when Labour publishes its draft National Planning Policy Framework (NPPF). This document, expected by the August parliamentary recess, will outline the government’s detailed approach to planning and development, providing more clarity on the specific areas and extent of land to be used.
Figures reveal a concerning 22% decline in the commencement of new homes from the start of this year to March compared to last year’s figures. With Labour’s ambitious target of 1.5 million homes to be built during their term in parliament, it is clear that serious action is needed to reverse this trend.
The Labour government’s housing overhaul will be spearheaded by Deputy Prime Minister Angela Rayner, Levelling-Up Secretary, and Planning Minister Matthew Pennycook. Their leadership will be critical in steering the ambitious plans through potential challenges.
In her speech on Monday, Rayner acknowledged the potential opposition to the new housing developments, stating, “Any development may have environmental consequences, place pressure on services and rouse voices of local opposition, but we will not succumb to a status quo which responds to the existence of trade-offs by always saying no.”. This statement underscores Labour’s commitment to proactive change, contrasting with Michael Gove’s 2023 policy shift which made council housing targets merely advisory.
Rayner emphasised how the house-building drive is integral to boosting the UK’s economy, promising a stable economy and defying recent forecasts of stagnant growth. The initiative is part of a broader strategy to invigorate economic activity through substantial infrastructure projects.
A key component of this strategy includes significant investment in green energy infrastructure. Labour has ended the Conservatives’ de facto ban on new onshore windfarm developments. The previous National Planning Policy Framework (NPPF) included footnotes that effectively halted onshore wind projects unless it could be proven there was zero local opposition, a near-impossible condition.
Labour’s bold approach to housing and infrastructure seeks to address the immediate need for more homes while laying the groundwork for sustainable economic growth. The coming months will be crucial as these plans are detailed further and put into action.
This article is purely intended as a helpful guide and not professional advice. Potential buyers should consult an independent professional prior to purchasing any land, property, or investment vehicle.