Meeting UK house demand, moving beyond the planning system

It has been argued that the existing planning system is no longer fit for purpose, that it is blocking the delivery of new homes. Across the UK, national governments have looked to reform the planning sector—Propertymark explores if this will be enough to build the homes we need.

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Through a series of roundtables held with Propertymark members in September 2024, agents called the planning system overly complicated and that it disincentivised development. A lack of strategic oversight between local authorities and incentives for landowners lead to situations where some areas see considerable development and others are left behind.

Even with the reforms, doubling the capacity of the planning system would be a colossal task given the existing financial and staffing pressures on local authorities. While there is certainly a case for reform, particularly consistency and greater resourcing for local authorities, to focus on reforming the planning system as the only solution is to fail to understand the larger picture.

Propertymark propose that a wider view of existing pressures on housing supply must be considered on top of issuing planning reforms. Only by doing so will the UK’s housing supply meet demand. Rather than focus on improving the planning system as a means of increasing housing supply, this position paper looks into three other areas that will need to be considered alongside planning reforms which risk undermining the capacity of the UK to build new homes if ignored. 

These include: 

  1. The historic role local authorities played in the years the UK built well over the UK Government’s 300,000 a year target
  2. The number of properties that have received planning permission but where works haven’t started
  3. The capacity for the construction industry to build 300,000 new homes a year
Download the position paper to read more