Planning reforms alone will not fix housing crisis – Propertymark

An industry body has warned the government that planning reforms alone will not be enough to deliver 1.5 million homes.

Propertymark’s Meeting UK House Demand position paper sets out recommendations for policymakers, including empowering councils to build more homes and supporting smaller developers in development planning.

The Labour government promised in its manifesto to build 1.5 million homes by the end of this Parliament.

Planning reform is not the sole reason the UK is failing to build enough homes

Propertymark warns the scale of the housing shortage has seen more than 1 million people stuck on social housing waiting lists.

In some areas of England, such as Westminster, families would have to wait 107 years before they would have access to a social home with three or more bedrooms.

The industry body claims with demand for social housing at record highs, people are turning to the private rented sector (PRS).

However, Propertymark says a lack of supply and high demand in the PRS has seen average rent costs across England have risen faster than real wage growth.

Timothy Douglas, head of policy and campaigns at Propertymark, says planning reforms alone will not solve the housing crisis.

He said: “There is no doubt that the planning system needs reform, but it is not the sole reason the UK is failing to build enough homes. For decades, homes were delivered at scale under the same planning framework because local authorities were building, skills were available, and developments were incentivised to progress quickly.

“If we continue to treat planning reform as the single solution, we risk ignoring the wider structural problems that are holding back delivery. To genuinely meet housing demand, governments across the UK must take a more holistic approach that supports builders, councils, and communities alike.”

Councils must build more homes

Propertymark recommends that local authorities take a greater role in building homes. According to their position paper, the number of council-built homes has dropped dramatically, from 85% in 1951 to just 0.06% in 2004, and, despite recent increases, councils still accounted for only 2.2% of homes in 2023.

Propertymark says councils should explore ways to build more homes, particularly affordable housing, which could help ease pressure on the private rented sector.

Propertymark also calls for a streamlined planning process and financial incentives for small and medium-sized enterprises to encourage new start-ups and greater involvement of smaller firms in development projects. They say local authorities should set clear, local schemes for planning delegation that benefit residents and speed up planning decisions.

Propertymark also urges the government to launch a national recruitment and skills campaign to address the construction worker shortage and recommends that councils review stalled projects, issuing binding resolutions for major delays, with large or critical developments referred to the Secretary of State.

The industry body warns that without action, the UK will continue to fall short of its housing targets, regardless of how streamlined the planning system becomes.