Labour’s Planning Reforms: Transforming the ‘Grey Belt’ for 1.5 Million New Homes

Labour's upcoming planning reforms aim to tackle the UK's housing crisis head-on. By redefining the contentious 'green belt' into a new 'grey belt', Labour seeks to unlock land for development while mitigating environmental concerns.

Labour’s upcoming planning reforms aim to tackle the UK’s housing crisis head-on. By redefining the contentious ‘green belt’ into a new ‘grey belt’, Labour seeks to unlock land for development while mitigating environmental concerns.

An Outline of the Current Housing Crisis

The UK is facing a significant housing crisis, with demand for homes far outstripping supply. As house prices soar and affordability becomes a growing issue, the need for innovative solutions is more imperative.

The green belt, initially established to prevent urban sprawl, has become a contentious point in the debate over how to meet the country’s housing needs without compromising environmental values. Labour’s latest proposal introduces a novel approach to this problem: the ‘grey belt’.

Rayner’s Overhaul of Planning Rules

Deputy Prime Minister and Housing Secretary, Angela Rayner, is set to announce a comprehensive overhaul of planning rules this week. As part of Labour’s commitment to constructing 1.5 million homes over the next five years, these changes are central to their manifesto pledges. Rayner has emphasised that “delivering social and affordable homes at scale” is her top priority.

The reforms will reintroduce mandatory housing targets, previously abandoned, and establish “golden rules” to ensure development benefits local communities and protects nature, specifically the green belt. Notably, the new ‘grey belt’ concept aims to reduce the stigma associated with developing green belt land.

Anti-NIMBY Coalition Urges Action

A group of 53 Labour MPs, including several parliamentary private secretaries, has written to Keir Starmer, urging him to resist the NIMBY (Not In My Backyard) opposition to housebuilding. This coalition, predominantly composed of newly elected MPs, includes several representatives from southern constituencies likely to face significant planning disputes. Their plea highlights the urgent need for bold action to address the housing shortage.

Green Belt vs. Grey Belt: A New Approach

Understanding the Green Belt: The green belt concept, first introduced in London in 1938 and expanded nationwide by the Town and Country Planning Act 1947, was designed to prevent urban sprawl by keeping land around cities permanently open. By March 2023, the green belt covered approximately 12.6% of England’s land area, amounting to 16,384 square kilometres.

However, the housebuilding sector has long argued that rigid green belt restrictions hinder housing development, bolstering NIMBY sentiments. Public opinion largely supports maintaining the green belt, with a 2023 Ipsos poll indicating that 60% of respondents favoured its preservation, even if it constrains housing availability.

Grey Belt – A New Concept: Recent polling by Stack Data Strategy in January 2024 revealed a more balanced perspective on developing ‘grey belt’ land. Among those opposed to local development, 57% were against building on green belt land. In contrast, when asked about grey belt development, 36% supported it, 27% were neutral, and 38% opposed.

Labour’s April press release defines the grey belt as “a new class of land prioritising grey and poor-quality parts of the green belt for development, ensuring benefits for local communities.” This strategy targets underused, unattractive areas of the green belt, distinguishing them from nature-rich, environmentally valuable lands.

Final Thought

Even with Labour’s proposed planning reforms, developing grey belt land will not be without challenges. Many of these sites, such as former petrol stations and industrial warehouses, require costly remediation due to pollution. As Anna Beadsmoore, a partner at McGill and Partners, notes, “Opening these areas for development doesn’t guarantee developers will be able to build on them.”

Labour’s success in delivering 1.5 million new homes over the next five years will depend on how effectively they can implement policies to overcome traditional barriers to housebuilding in the UK. The introduction of the grey belt is a promising step, but its execution will be crucial to meeting the nation’s housing needs.

To learn more about Curia’s Building Communities Report (set to be launched this autumn), which features key insights from Associate Director at Connected Places Catapult, Richard Miller and Senior Research at E3G, James Dyson, to name a few, please email info@chammberuk.com to find out how you can become a subscriber.

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