Opening up the ‘Grey Belt’ – Rayner’s plan to create 1.5 million new homes

Housing secretary Angela Rayner outlined her plan for delivering on one of Labour’s key election promises yesterday, the creation of 1.5 million new homes in England by 2029.

The UK Housing crisis is a long-standing problem. Since 2003, the number of owner-occupied households has dropped from over 70% to under 65%, with under 35s showing the most dramatic decline. Local Authorities are spending over £1.7 billion per year on temporary accommodation

Rayner’s initial plan is aimed at increasing supply, by reinforcing set housing targets on English councils and opening up more ‘grey belt’ land to development.

Housing targets are not a new measure. Rishi Sunak’s government were forced to relax the policy in 2022, due to pressure from backbenchers. Raynor criticized this move as an example of putting ‘party before country’. Councils that had failed to account for these targets in their long-term planning risked restrictions being placed on their ability to stop new developments.

However, Rayner is tweaking how these targets are calculated, to account for housing affordability and dropping a 35% uplift for Urban areas. While overall this will result in councils having to plan for an average of 370,000 per annum, (an increase from current targets of 305,000), some areas, such as London, Birmingham and Coventry (primarily Labour run Urban councils) will see their targets significantly drop. Raynor acknowledges this is necessary and that previous targets in these areas were ‘absolute nonsense’, but the proposal has drawn criticism from the opposition. Kemi Badenoch, a favourite in the Tory leadership race, has claimed that the proposals will force suburban and rural areas to take more housing from the inner city.

In addition, Rayner outlined how ‘low quality’ green belt land would be re-classified as ‘grey belt’. What proportion of the green belt, which currently represents 12% of England’s land area would be reclassified is unclear, as decisions would be down to reviews by individual councils. Councils will have to consider whether land has been previously developed, and what ‘contribution’ it makes to protecting the countryside and the character of historic towns. New ‘Golden rules’ for development in these areas will also be enforced, including the fraction that must be deemed as affordable and there will no longer be any requirements for new homes to be ‘beautiful.’ Green Party critics have called the plan a ‘distraction’ from Labour’s failure to invest in council housing.

Rayner admits her plan ‘won’t be without controversy’. New home starts are likely to be below 200,000 this year, a massive shortfall from the Tory government’s 300,000 target. While addressing the housing supply is a big step in the right direction, without a commitment to public funds to counter high prices and exorbitant rents, some critics warn Rayner’s plan does not go far enough.

(Sources: bbc.co.uk, economicsobservatory.com)