With the general election now just a few days away, and seemingly a racing certainty that Labour will win the election and form the next government with a significant majority, the Planning and Development Team thought we would take the opportunity to have a detailed look at Labour’s policy position on Housing, as set out in their manifesto.  

The general view from commentators is that Labour’s manifesto, as well as their approach to the election, is one of caution with no significant policy announcements. It is perhaps therefore significant that Labour have put strong emphasis on a need to build more houses, which can be a divisive and unpopular issue.  A key pledge in Labour’s manifesto is the delivery of 1.5 million new homes over the next parliament (5 years) which is a significant figure, and it is worth noting that the required rates of construction to achieve this objective haven’t been achieved since the post war period.  Most in the development industry believe that a new Labour government will therefore have to act quickly to bring forward development.  In their manifesto Labour outline that they will bring back mandatory housing targets, coupled with a ‘strengthened presumption in favour of sustainable development’ and these could be the main tools a Labour government would use to increase house building in the short term. It is also interesting to note that on a number of sites where we have agreed option or promotion agreements with developers, the developers are already talking about starting to work up planning applications in anticipation of these changes. 

Any readers currently involved in the planning process will know how challenging and slow the application process can be and Labour do talk about funding additional planning officers. Whilst I am sure this will be welcomed by all, the lead in time will be slow and local politics also has a bearing – on this point, Labour highlight that ‘where necessary Labour will not be afraid to make full use of intervention powers to build the houses we need’.

Over the longer-term Labour are planning a new generation of new towns and we believe that there are already direct discussions with developers regarding potential locations.  Whilst new towns will deliver more supply, we know from other large schemes that we are involved in, that the lead in time from inception to delivery is very long.  It is therefore unlikely that any significant contribution to the 1.5 million new homes will come from new towns in the first parliament of a new Labour government but perhaps the general policy thrust will help to bring forward consents on other large urban extensions/garden villages already in the system. There has been considerable chatter within the land and development industry about the possible use of Development Corporations and compulsory purchase associated with large development schemes. Labour’s manifesto comments that they will ‘reform compulsory purchase compensation rules to improve land assembly, speed up site delivery, and deliver housing, infrastructure, amenity and transport benefits in the public interest’.  This is certainly an area that will need to be monitored if Labour forms the next government.

Another key area of policy, which again has the potential to be divisive and controversial, is the review and potential release of some land from green belt designations. This may open up development opportunities in areas where development has previously been constrained.

Housing/development appears to be one area where Labour has displayed a degree of boldness and are seeking a mandate from the electorate to significantly increase development.  It is likely that affordable housing and opportunities for first time buyers will play a significant role in future developments if Labour are elected but hopefully Labour will also realise that development leads to economic growth and therefore, that there is a benefit to working with the private sector developers and landowners that hold the key to meeting their policy aspirations.

I should also comment that we have deliberately not considered the potential taxation of development land sales in this Ponderings. There are others much more qualified than me who can analyse the state of the nation’s finances and the future commitments that are required in terms of welfare, healthcare and adult social care.  Labour is putting a strong emphasis on growth and improved productivity to help fund these future commitments, but most commentators seem to point to a need for some increased taxation. Traditionally receipts from development land sales are seen as an easy target!

If Labour do form the next government as expected, then there may be some opportunities created if a step change in planning policy does follow, but there may also be challenges that need to be navigated/addressed. Please contact the Planning and Development team about any planning or development matter and we will be happy to help you.      

Peter Moore - Partner

Planning & Development