The government is introducing tough new rules to stop property developers from sitting on empty land for years without building homes. Under the new system, councils could take away building sites from companies that don’t deliver houses on time.
Across the country, there are thousands of building sites with planning permission that remain empty year after year.
Housing Secretary Angela Rayner says it’s “time for developers to roll up their sleeves and play their part.” She says that sites with planning permission have been “gathering dust for decades while a generation struggle to get on the housing ladder.”
How the new rules will work
Strict Timelines: Before getting planning permission, developers will have to promise exactly when they’ll finish building. No more vague commitments.
Annual Check-ups: Companies must submit yearly progress reports to local councils, proving they’re actually building homes as promised.
Land Seizure: If developers repeatedly miss their deadlines, councils can take the land away and give it to builders who will actually use it.
Financial Penalties: Slow developers could face thousands of pounds in fines for every home they fail to build, with the money going directly to local planning authorities.
Future Bans: Companies with poor track records could be banned from getting new planning permissions.
Housing charity Shelter says developers deliberately “drag their heels” to keep house prices high and maximise their profits.
The government wants to build 1.5 million new homes in England by 2029. That means constructing 370,000 houses every year – a massive challenge that requires developers to work much faster than they currently do.
Economic forecasters have warned this target might be unrealistic, even with planning reforms. However, the government believes the new measures will help reach the goal. If successful, it says the housebuilding boom could add £6.8 billion to the economy by 2029.
Making big developments build faster
Large housing developments with more than 2,000 homes typically take around 14 years to complete. The government claims that developments with more affordable homes get built twice as fast.
To speed things up, the government plans to require large developments to include a mix of different housing types by default. This means expensive houses alongside affordable homes and social housing in the same neighborhood.
Supporters argue that these measures are long overdue. Housing charity Shelter says faster building is essential, but also believes councils and housing associations need to build more social housing directly.
Critics worry the rules add too many burdens on builders. Opposition MPs support faster housebuilding but claim the government is making developers’ jobs so difficult that housing targets are becoming impossible to achieve.
Some have raised concerns about immigration affecting housing demand, though housing experts generally agree the main problem is simply not building enough homes for the existing population.
How this might affect you
If you’re trying to buy a home: More houses should become available faster, potentially helping with affordability over time.
If you’re renting: Increased housing supply could eventually help stabilise or reduce rental costs.
If you’re on a social housing waiting list: The focus on mixed developments could mean more affordable and social housing gets built.
If you live near proposed developments: Projects might start and finish more quickly, reducing the disruption of long-term construction sites.
Property developers have previously been able to get planning permission and then take their time building houses, sometimes waiting years to maximise profits.
These new rules aim to send a clear message: get building or lose your land. Whether this tough approach will solve our housing issues remains to be seen, but it attempts to represent a serious attempt to force developers to deliver on their promises.