Michael Gove has set out his plans to unblock the planning system, focusing primarily on increasing development in urban areas.

Gove outlines plans to tackle demand for housing – industry reaction

Levelling up secretary, Michael Gove, has set out his plans to unblock the planning system, focusing primarily on increasing development in urban areas.

In his speech, Gove said that his 10 principles include regenerating 20 towns and cities across the country, stating that “urban regeneration and a new inner-city renaissance” was the “first and most important” part of his plan as this is where the demand for housing is the greatest.

To do so, the government will make an additional £1billion available to regenerate brownfield sites in towns and cities.

Gove also used his speech to criticise Labour for wanting to concrete over the countryside, while maintaining that the government will be “using all of the levers that we have to promote urban regeneration rather than swallowing up virgin land”.

The levelling up secretary spoke about the shortage of new houses in London, saying that as few as 30,000 homes were being built a year compared to a possible 52,000 and placing the blame on Sadiq Khan, saying “The Labour mayor’s failure on housing… undermines the vitality and attractiveness of our capital.”

Gove suggested that the government would intervene and outlined a plan for what he called Docklands 2.0; an expansion to the east that would provide “tens of thousands of new homes” and improved transport connections across the capital.

Moving away from the capital, Gove said that Leeds city centre would see a comprehensive regeneration, while also pledging new homes and a transport system for Manchester, and further investment for Wolverhampton, Sheffield and Cambridge.

To facilitate creating additional housing, Gove also said that he would relax the rules around converting shops, takeaways and betting shops into homes rather than encouraging urban sprawl.

In terms of delivering his plans, Gove announced that a “super squad” of planners would be created to unblock major housing and infrastructure developments.

Here’s how Michael Gove’s speech was received across the industry:

Marc Vlessing, CEO of Pocket Living, said: “Whilst we welcome the government’s announcement to support housing delivery across England, we remain concerned that it falls short of providing immediate solutions to the growing challenges facing an industry under siege. We need housing today, not tomorrow and that is why for the last year we, along with almost 50 organisations large and small, have been campaigning for a small site planning policy.”

“Through simple changes to national policy, which could be enacted overnight through ministerial direction, the government could unlock literally thousands of small brownfield sites across England with the potential to deliver up to 1.6 million homes. But sadly the government has not delivered against our initiative. We need action now to halt the planning blight that is stopping the delivery of small sites and much-needed affordable housing. So we, along with the growing industry coalition, urgently encourage the Secretary of State to fast-track plans around small sites, which will provide a lifeline to both SMEs and affordable housing providers across the country.”

Josie Parsons, chief executive of affordable housing charity, Local Space, said: “While we welcome the focus on greater housing delivery, especially within our cities, we are disappointed by the lack of focus on tackling one of the biggest social and economic challenges facing those cities. Namely the shocking increase in homelessness and the desperate need to provide more safe and secure longer-term accommodation to help alleviate this crisis. Tackling homelessness is not only a social imperative, there are significant economic benefits to be had through greater productivity.”

Victoria Du Croz, head of planning and partner at Forsters Law Firm, said: “The government and DLUHC appear to be having a knee-jerk reaction to the results of last week’s local elections and the impending General Election in 2024, essentially seeking to demonstrate that action has been taken to deliver on housing and development in the current parliamentary term. A focus on inner cities makes sense, given the Conservative’s aversion to delivering development on the green belt, but the reality of bringing more homes to the cities will mean building high to reach the necessary density.”

“Neither brownfield sites nor conversions of office to resi have delivered the number of new homes that are needed across the country to date. Re-focusing on these planning mechanisms, by expanding permitted development rights to shop and commercial conversions is unlikely to boost housing numbers to the levels that are needed. Today’s announcement failed to recognise the vital importance of a cohesive vision for our towns and cities, that housing is just one element of growing the economy and supporting people. Housing is needed alongside job creation, space for warehousing and a retail and leisure strategy.”

Verity Davidge, director of policy at Make UK Modular, said: “Today’s announcement to manage the housing planning backlog through a planning skills delivery fund is a step in the right direction. Part of the fund should be dedicated to ensuring planners have the knowledge and expertise of modular housebuilding too, which can help tackle the housing crisis we face in the UK.”

“That said, these policies only begin to scratch the surface and we need to see more ambitious reforms to housing. Lowering stamp duty for EPC A-rated homes and allocating a higher proportion of the affordable housing programme to modular housing would unleash the potential of a dynamic and innovative sector able to provide homes greener, faster and better.”

Charles Jordan, head of new homes at estate agents Winkworth, said: “We still need more homes to be delivered but it’s a step in the right direction. The increased housing availability may help make housing more affordable and accessible to a broader section of the population. Changes to the planning system like the £24million planning skills delivery fund are also good news.”

“A predictable and efficient planning system improves business confidence which the UK needs right now. This should enable companies to make long-term investment decisions with greater certainty, leading to more strategic and sustainable growth and lower inflation. More lenient permitted development rights would stimulate economic activity in the construction industry. Home improvement projects like extensions and conversions can create jobs and drive demand for building materials and services. Additionally, encouraging upward and outward development will address housing needs by increasing the housing stock.”