Gove scraps housing targets in levelling up U-turn

The government has watered-down a manifesto pledge to build 300,000 homes a year in an attempt to stave off a growing rebellion. The target was a crucial element of the Levelling Up and Regeneration Bill, which has been pulled from its passage through the House of Commons after Tory MPs led a series of revolts over housing targets, planning reform and wind farms. Between 60 and 100 Conservative MPs, predominantly representing seats in the south of England, last week backed an amendment that would have scrapped mandatory national housebuilding targets and instead made them voluntary. Levelling up secretary Michael Gove has spent that time in negotiations, but in a letter to MPs yesterday the “compromise” was revealed as a capitulation. Mandatory targets would now only be “advisory”, with local councils having the option to build fewer homes. The department said housing targets “remain an important part of the planning system and the government will consult on how these can better take account of local density”. Theresa Villiers, the former environment secretary, who led the rebellion, said the prime minister and Gove had “listened and moved in our direction”. In a statement, Gove acknowledged that “our planning system is not working as it should”, and attempted to pitch the U-turn as a positive. “If we are to deliver the new homes this country needs, new development must have the support of local communities. That requires people to know it will be beautiful, accompanied by the right infrastructure, approved democratically, that it will enhance the environment and create proper neighbourhoods. “These principles have always been key to our reforms and we are now going further by strengthening our commitment to build the right homes in the right places and put local people at the heart of decision-making.” Other concessions have also been made. Green belt protections will be strengthened, with new guidance setting out that local authorities are not required to review green belt to deliver homes. Brownfield land will be prioritised for development, with the government launching a review into how such sites are used. Developers will potentially be hit with new financial penalties if they sit on planning approval without delivering schemes, while councils will be given powers to refuse further permission across their area. Measures to stem the growth of second homes will also be inserted into the bill, alongside the existing 100% council tax premium already included. A registration scheme for second homes and holiday lets will be established, while ministers consult on whether planning permission should be required for new short-term lets, especially in tourist hotspots. Gove added: “I am grateful to colleagues across the House for their hard work and support to drive forward these much-needed changes to create a planning system that works for all.” Shadow levelling up secretary Lisa Nandy said scrapping the mandatory targets “would be unconscionable in the middle of a housing crisis”. She added: “We offered Labour votes to defeat the rebels, but Rishi Sunak and Michael Gove seem to have chosen party before country.” It is still unclear whether the government will be able to find legislative time for the bill to continue its passage before the new year. The department said: “The Levelling Up and Regeneration Bill will continue its passage through parliament shortly.” James Forrester, managing director at Stripe Property Group, said: “This is astonishingly negligent on the part of the government. Housebuilding has languished below the required 300,000 annual number since the 1950s and that is even with the focus and accountability of local authority facing targets. To remove those targets is to allow the UK’s requirement to dangle in the wind and we now have even less chance as a nation of providing adequate dwelling numbers. It’s a dumb move.” Iain Crawford, chief executive at the Alliance Fund, added: “Another day, another U-turn but this one is particularly serious in that it is watering down the country’s likely annual residential construction output.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo © Tolga Akmen/EPA-EFE/Shutterstock (13495842as)