Weekly planning news
Planning news - 24 October 2024
Significant housing boost expected in budget
It’s being reported that housing will receive an ‘almost £1 billion’ boost in the budget next week, with claims that the funding will go towards a ‘council housing revolution’.
As Secretary of State for the Department of Housing, Communities and Local government, it’s been widely reported that Angela Rayner intends to use the money to bolster council housing supply. It’s also been widely speculated that she will take aim at ‘right to buy’ – a scheme allowing tenants to buy their social houses.
The budget will be announced on 30 October by Rachel Reeves – marking the new government’s first since coming to power.
These reports come following a warning from Housing Bodies: The Home Builders Federation, Savills and National Housing Federation that ‘significant’ support will be needed for social housing if the government wants to achieve their housing development ambitions, as reported by The Planner last week. The current state of the housing market is limiting demand and higher interest rates are meaning fewer mortgages for first time buyers.
This substantial financial boost is said to have been agreed with Chancellor Rachel Reeves and will supplement the Affordable Homes Programme over the next 18 months, with larger sums expected in next spring’s spending review.
The reports, appearing in The Times, Evening Standard, The Sun, and Daily Mail, suggest that between £500 million and £1 billion will be released initially, aimed at jumpstarting efforts to expand social housing across England. This funding marks a significant step in Labour's ambitious target to build 1.5 million homes over the next five years, a key element of the party’s housing agenda.
While the Ministry of Housing, Communities and Local Government has declined to comment on these budget speculations, Rayner has consistently emphasised the crucial role council housing can play in tackling the UK’s housing shortage. In a letter sent to local authority leaders and chief executives in July, she highlighted the Labour party’s commitment to supporting social and affordable housing through targeted government investment, with details to be shared in the upcoming spending review.
Government publish response to Competiton and Market Authority’s Housebuilding Study
The UK government is introducing a new consumer code for housebuilders and a New Homes Ombudsman service to help homeowners address quality issues with new builds.
In response to recommendations from the Competition and Markets Authority (CMA), Housing and Planning Minister, Matthew Pennycook emphasised the government's commitment to building 1.5 million homes, including a significant increase in social and affordable housing. The government also plans to tackle issues like 'fleecehold' estates and improve transparency in private management arrangements, alongside updating the National Planning Policy Framework to ensure communities receive the homes and infrastructure they need.
You can read the full report on the government’s website.1
Government signals new support scheme for infrastructure investors
The government’s new industrial strategy, ‘Invest 2035’, highlights infrastructure and planning as key areas where current regulations pose a barrier to economic growth. To address these challenges the report announces a tailored support service for infrastructure investors, aimed at optimising investment opportunities and attracting increased funding.
The ‘Invest 2035’ report highlights that current planning processes are a significant obstacle to infrastructure investment, impacting national economic growth. While there have been efforts earlier this year to streamline the consenting process for major Nationally Significant Infrastructure Projects (NSIPs),2 the industrial strategy underlines that that further changes around infrastructure are needed to provide the competitive edge required to draw in international investment.
Although the details surrounding the new investment support service are currently limited, the strategy states that this initiative aims to "unlock infrastructure investment across the country."
You can read the government’s full Investment Strategy on the government’s website.3
1,000MW battery energy storage system approved in Cardiff
A data centre and accompanying 1GW battery energy storage system (BESS) gained approval from Cardiff City Council, becoming the largest BESS to secure planning permission in the UK. The decision follows initial recommendations that the application should be approved.
Over 800 batteries will be stored in shipping containers on the site, while the eight floor data centre will reach 25 metres in height.
The works, located in Splott, will renovate over 16 hectares of former industrial land. Despite initial fears over habitat loss, the development was deemed acceptable overall.
The BESS will primarily be used to store renewable energy from the National Grid. Using on-site renewable energy generation and importing green energy, the site will target carbon neutral status.
Throughout the development and following operation of the site, over 1,200 jobs are expected to be made, with further benefits to the local supply chain.
- https://www.gov.uk/government/news/government-commits-to-addressing-housebuilding-recommendations
- https://www.planningportal.co.uk/services/weekly-planning-news/planning-news-11-april-2024#updated-pre-application-service-for-nationally-significant-infrastructure-projects-(nsips)
- https://www.gov.uk/government/consultations/invest-2035-the-uks-modern-industrial-strategy/invest-2035-the-uks-modern-industrial-strategy