In her first address as Chancellor, Rachel Reeves firmly stated her commitment to tackling the UK's housing crisis, despite potential opposition from 'nimbys'—those who resist new housing developments in their local areas. "It will be up to local communities to decide where the housing is built, but it has to be built. If the answer is always no, we will continue as we are... we've got to get Britain building," Reeves declared.
The UK's persistent housing crisis is exacerbated by the Conservative government's failure to meet its ambitious housing construction goals. As of March, only about 135,000 homes had begun construction, marking a decrease of over 25 per cent from the previous year. Since the 1950s, Britain has failed to consistently meet the annual target of constructing 300,000 new homes, a shortfall that severely impacts the government's aim of building 1.5 million new homes by 2029.
Labour's Plan for Change
Labour has pledged to overhaul the current planning system, which it blames for the slow pace of house construction. Reeves has proposed several measures to expedite housing development, including the recruitment of 300 additional planning officers across the nation.
Reeves also announced the formation of a specialist team to "accelerate stalled housing sites" and reassess the green belt borders. This review will prioritise development on brownfield and so-called "grey belt" land to meet housing targets.
The Campaign to Protect Rural England (CPRE) describes green belts as "14 areas of land [in England] that are protected from most forms of development." These areas are designated by local planning authorities under the Town and Country Planning Act 1947 to prevent urban sprawl, which leads to the merging of towns and the loss of valuable green spaces. The green belt in England covers 6,326 square miles, or 12.6 per cent of the country's total area, with only 0.3 per cent currently developed for residential use.
The "Grey Belt"
The term "grey belt," introduced by Labour during their housing programme launch in April, refers to less attractive or underutilised green belt land intended for residential development. Prime Minister Sir Keir Starmer emphasised that Labour would prioritise these areas for development, ensuring any grey belt projects deliver affordable homes, new infrastructure, and improved green spaces.
Although there are no official statistics on the grey belt, a prior estimate by Real Estate Broker Knight Frank suggested these areas could support the construction of up to 200,000 houses.
Brownfield Land
Brownfield land, described by the CPRE as "previously developed land that's no longer being used," such as abandoned factories or industrial estates, is another focus for Labour's housing strategy. Advocates for brownfield development argue that it is the "building equivalent of recycling," making use of idle land rather than developing pristine countryside.
Challenges to Labour's Strategy
Experts caution that achieving the 1.5 million housing goal by 2029 will be challenging. Alongside opposition from nimbys, Paul Maile, a senior planning partner at law firm Eversheds Sutherland, identified "supply chain constraints and a shortage of skilled workers like construction personnel" as significant obstacles that Labour must overcome.
James Dunne, head of operational real estate at asset manager Abrdn, warned that substantial financial support from the government is essential for the private sector to deliver the necessary homes. This warning followed Reeves's announcement of her construction plans, which include reinstating mandatory housing targets for local councils as part of Labour's pledge to build 1.5 million new homes over the next five years.
Rachel Reeves's call to "get Britain building" underscores Labour's commitment to addressing the UK's housing shortage. By focusing on reforming the planning system, leveraging brownfield and grey belt land, and tackling supply chain and workforce challenges, Labour aims to meet its ambitious target of 1.5 million new homes by 2029. While significant obstacles remain, the proposed changes represent a bold vision for the future of UK housing.
