For years, England has grappled with a cycle of missed housing targets, a pattern that stems from a planning system that is no longer fit for purpose, argues Anthony Pollard, head of economics at Turley
The latest statistics paint a concerning picture: between April and June 2024, district-level planning authorities in England saw a 9% decrease in planning applications compared with the previous year. Decisions on applications fell by 6%, with granted decisions down by 7%.
These numbers reflect a system struggling to keep pace with the country’s housing needs.
The decline is particularly stark in residential applications, with a 5% drop in granted applications compared with the same quarter last year. Over the year ending June 2024, the total number of granted decisions fell by 8%. These figures underscore the urgent need for a comprehensive review.
A promising start
Since entering government, Labour has committed to 1.5m new homes in the next five years, which is not just promising – it’s essential.
But the proof will be in the delivery. While the target provides a clear goal to work towards, to truly break the cycle of missed targets, we need more than just mere numbers.
We need a comprehensive new national housing strategy that will provide certainty for plan-makers and investors and ensure that the pipeline of planning applications starts rapidly growing again.
Recognising housing as a critical part of our national economic infrastructure
The government’s recent announcements recommitting to the election manifesto pledge to develop a “10-year infrastructure strategy” is hugely encouraging. It acknowledges the vital role of housing in economic infrastructure, a point reinforced in the UK’s Modern Industrial Strategy Green Paper issued recently for consultation, and addresses the long-standing need for long-term planning and stability in the sector.
This urgently needed strategy must provide a clear, integrated long-term framework for investment and development that presents a coherent plan for boosting our economy and providing the homes needed.
It should mediate interests of all stakeholders, including government, private companies and local residents, and align priorities across different government departments, to ensure that housing development is supported by the necessary infrastructure and aligned with spatially targeted economic investment.
This holistic approach is essential, not only for boosting housing supply but also for fuelling the UK’s economic recovery. By creating a system that facilitates enabling development, including housing, we can unlock the potential for growth across multiple sectors.
Housing targets: A necessary backbone of England’s planning system
The enforcement of mandatory housing targets, coupled with an increased overall national target for granting planning permissions for some 370,000 homes annually, demonstrates that Labour is willing and ready to take England’s housing shortage seriously.
This bold and ambitious intention is necessary to provide the backbone to a national approach to plan for housing and to meaningfully tackle the housing crisis and deliver the homes the country desperately needs.
The proposed new approach, using existing housing stock as a baseline, promises a more balanced distribution of need. This method is inherently more stable and easier to understand, which should assist in streamlining the plan-making process and achieving comprehensive Local Plan coverage across the country ensuring the sum of the parts adds to the national whole.
Beyond increasing the overall supply, a national plan for housing must also acknowledge the breadth of need, reflecting in no small part the variation of economic opportunities that exist and will continue to be created.
With a 14% growth in the number of households on local authority waiting lists over the last five years, meeting a growing need is as crucial as increasing overall supply.
This comprehensive approach has the potential to create a more responsive and effective housing delivery system.
The role of planning in translating a national strategy to local delivery
Delivering the vision will require a reimagining of our planning system.
The current system, with its complex web of local and national policies, often acts as a barrier to development rather than an enabler. We need a system that is streamlined, efficient and, most importantly, supportive of sustainable development.
Proposed planning reforms will take us part of the way but bold ambitions will continue to need to be matched by a commitment to continue a process of proactive policy changes.
Critically, the success of these reforms will also largely depend on effective implementation and the ability of local authorities to meet these ambitious goals. Adequate resourcing and support for local planning departments will be crucial in turning these plans into reality.
Increased funding will allow local authorities to hire and retain skilled planning professionals, and investment in advanced digital planning tools and GIS systems can significantly improve efficiency.
Alongside this, ongoing training and development opportunities for planning staff would ensure they’re equipped to handle complex applications and changing regulations, and establishing a national planning advisory service could offer guidance and best practices, helping to standardise processes across different local authorities.
A brighter future for housing
As we look to the future, there is reason for optimism. Labour’s willingness to take a national outlook in planning for investment and growth, twinned with its commitment to address the housing crisis head-on and a willingness to reform the planning system, sets the stage for transformative change.
By addressing the fundamental issues within our planning system, we can create a national framework that cascades down and not only meets housing targets but also builds communities, drives economic growth and improves the quality of life across England.
The road ahead may be challenging but with a clear vision, political will and a reformed planning system, we can turn the tide on England’s housing crisis and create a brighter future for all.
