A Labour government would step up efforts to deliver more affordable homes as part of a series of new towns within a year of taking office, Angela Rayner announced yesterday.
Labour’s deputy leader and shadow housing secretary told a housing conference that Labour will strongly support private developers who create high-quality and affordable housing.
Under the plan, Labour would appoint a new towns taskforce of independent experts to select possible sites, with factors to consider including local views, plus a suitably high demand for new housing and the prospect of jobs and transport infrastructure.
The process would be opened to bidding from councils. In a planned timetable the taskforce would make recommendations within six months, with the list of projects confirmed within 12 months and homes being built during a first term.
“Developers who deliver on their obligations to build high-quality, well-designed and sustainable affordable housing, with green spaces and transport links and schools and GPs’ surgeries nearby, will experience a new dawn under Labour,” said Rayner. “But those who have wriggled out of their responsibilities for too long will be robustly held to account.”
Labour argues that planning applications are falling in England, saying that between October and December 2023, district planning authorities had 9% fewer applications than the same period a year before, and made decisions on 12% fewer.
Separately, a cross-party thinktank has argued that Labour could fund mass construction of new homes for social rent by raising money from what it described as a “fairness tax” on other aspects of the property market.
Lawrence Turner, director at Boyer, commented: “The announcement by Angela Rayner sets out a bold and ambitious plan to deliver “towns of the future” to help tackle the UK’s housing crisis. As past Governments have shown, building 300,000 homes per year is a monumental task, but it is one that is desperately needed to address the severe shortage of housing that has been a growing problem for many years.
“To do this, Labour proposes to set up a New Town Commission within six months of a Labour government coming into power, which will prioritise the delivery of housing and infrastructure development to support new communities. At the heart of the plan is the provision of 40% affordable housing in these New Towns, which would help to address the housing needs of all segments of society.
“However, the task of creating New Towns and developing housing at such a rapid pace is not without its challenges. The political hurdles that come with development on the edge of settlements and the release of Green Belt, is something that has been very difficult for the incumbent Government to deliver. Conservative voters, who tend to live and oppose development in these areas, have been a significant roadblock to progress for the Government over the last 14 years.
“The decision by Labour to reclassify low-quality areas of Green Belt land for development, known as Grey Belt, is a controversial move that will likely face opposition from environmental groups and local residents. However, it is a necessary first step to release the most sustainably located land for much-needed housing. Tough decisions like this will be crucial if Labour is to meet its ambitious housing targets.
“The reintroduction of housing targets in England and reforms to the planning system are welcomed and are an important component of any plan to address the housing crisis. Without mandatory housing targets and a streamlined planning process, it will be impossible to deliver 300,000 homes per year.
“It is also vital that Labour works with the private sector to fund the development of these new towns. While the Government can provide support and incentives for developers to build affordable housing, ultimately it will be private investment that drives the growth of new communities. By creating a positive environment for developers and ensuring that land values reflect the need to build affordable housing, New Towns can make significant progress in addressing the housing crisis.”
Antony Duthie, regional director of planning consultancy Lanpro, said: “When Sir Keir Starmer set out his six priorities last week, to the surprise of many he didn’t include housing as a priority. And so it is good to see housing back on the agenda.
“That said, with the substantial downturn in housing delivery and planning applications during this government, it is clearly imperative that the planning system is de-politicised. Afte all, a home is a basic human need and should be top of the agenda for the next Government no matter what its political colour.
“Whether Labour’s new towns policy can genuinely address the escalating housing crisis – or whether it fails, as the ‘eco towns’ and so many other similar proposals did before – will of course rest in the detail.
“The announcement boldly proposes that a commission would be set up within just six months and a list of sites decided within a year. Since this would this require a new Act of Parliament as it did in the post-war period, it may be committing to too much too soon.
“Furthermore, there’s the question of willing landowners and contractual negotiations with developers, presumably involving compulsory purchase: it’s not a quick fix by any stretch of the imagination.
“If you then throw into the mix the thorny subject of Green Belt protection – the function of which is inherently misunderstood and leads to very emotive objections; also viability considerations, the new requirement for biodiversity net gain and the complexities of infrastructure delivery, the delivery of new towns will be complex and protracted.
“One advantage that this policy might bring is concerning the infinitesimal issue of NIMBYism – in many cases, at least new towns are in the back yard of very few people.
“But while new towns are part of the solution, should we not be focusing first on what’s readily achievable – such as the reintroduction of housing targets and indeed the notion of ‘grey belt’ as already floated by Labour?”
