Developers who delay building homes could soon lose their land under new housing rules that may strip land from developers. The plan aims to accelerate housing construction across England and address the ongoing housing crisis.
Deputy Prime Minister Angela Rayner unveiled the proposed reforms, which would require builders to commit to timelines before getting planning approval. New housing rules may strip land from developers to ensure timely progress, requiring them to submit annual reports to local councils showing their construction progress.
If they fail to meet targets, they may face steep penalties. Councils could also take back control of the land and reassign it to other builders. The move supports the government’s goal of delivering 1.5 million new homes by 2029.
Rayner stressed that the government backs “the builders not the blockers.” She said developers must now “roll up their sleeves” and help meet urgent housing needs. She added that no more planning permissions should be left “gathering dust for decades.” Indeed, new housing rules may strip land from developers who do not cooperate.
A formal planning reform paper will be released this weekend outlining the full proposals. Under the new rules, developers who repeatedly miss deadlines could be blocked from securing future permissions.
The government also plans financial penalties of thousands of pounds per unbuilt home. These fees will go to local authorities to help enforce timelines and ensure progress.
The reforms follow concerns from housing advocates and charities. Shelter welcomed the proposal, saying it targets developers who delay builds to drive up prices and avoid social housing requirements, as new housing rules may strip land from developers who exploit such tactics.
Shelter’s Alicia Walker said thousands of families are suffering due to housing shortages. She warned that building faster is only part of the solution. Long-term success, she argued, depends on more social housing from councils and housing associations.
Currently, 1.3 million families are on waiting lists for social housing. A record number live in temporary accommodation, including 160,000 children. Rising rents and house prices have made it harder for many to buy their first home.
The Office for Budget Responsibility projects that housebuilding will fall short of the target. However, the government says new reforms could help meet it, especially if more mixed-tenure developments are introduced.
Larger sites, often taking up to 14 years to complete, may now be required to offer various housing options by default. This could speed up delivery and ensure a greater share of affordable homes.
While Conservatives support efforts to increase housebuilding, they warned the government might be overburdening developers. Shadow housing secretary Kevin Hollinrake also criticised Labour’s immigration stance, claiming it would push housing demand even higher.
Despite political friction, the government remains firm on its strategy. Officials say tough action on underperforming developers is essential to solving the housing emergency.
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