Country Reports - UK

Labour Government Sets Ambitious Targets for UK Housing and Infrastructure

July 2024

Country Reports - UK

Labour Government Sets Ambitious Targets for UK Housing and Infrastructure

July 2024

The Labour party's recent electoral victory, which ousted Rishi Sunak’s Conservative-led administration, has brought significant changes to the UK's housing and infrastructure policies. In her inaugural speech, newly installed Chancellor Rachel Reeves addressed business leaders, expressing her readiness to confront those who have delayed or obstructed housebuilding infrastructure investments within the planning system.

One of the key changes under the new government is the re-establishment of annual targets for new home construction. Labour has pledged to construct 1.5 million homes over the next parliamentary term. This commitment includes building on 'grey-belt' land—portions of 'green-belt' land that are considered to be of poor quality. The 'green-belt' comprises 14 protected areas around urban centers where development is typically restricted.

This move marks a reversal of the previous administration's policies. The Conservatives’ 2019 manifesto promised the construction of 300,000 new homes annually in England by the mid-2020s. However, this target was not achieved, with the highest number of 'net additional dwellings' reaching just under 250,000 in 2019-20 before declining during the COVID-19 pandemic. By the end of 2023, then-levelling up secretary Michael Gove had abolished housing targets for local authorities.

In addition to reinstating housing targets, the Labour government is expected to lift the moratorium on onshore wind energy projects and allocate funds for the hiring of hundreds of new planning officers. These measures are part of a broader effort to overhaul the planning rules and accelerate infrastructure development across the country.

The new housing and infrastructure policies reflect Labour’s commitment to increasing housing supply, making homes more affordable, and addressing the planning system's inefficiencies. As these changes take effect, the government aims to tackle the longstanding challenges within the UK housing market and promote sustainable development.