Councils turn to AI to boost housebuilding
Local councils across the country are turning to artificial intelligence to speed up the planning process, as Labour’s 1.5m housebuilding target clashes with a slowing construction sector.
A number of local authorities – including several in the capital – have either piloted or implemented AI planning tools, but housing leaders have warned that the government must step up its delivery to meaningfully boost building.
Labour’s pledge to build 1.5m homes by the next general election is under threat, as construction firms warn they are facing building cost inflation and several of the country’s top housebuilders cut back on projects.
In London, sector sources confirmed Enfield and Wandsworth recently completed pilots on AI planning technology aimed at speeding up decision-making, with Haringey Council also understood to be exploring similar tools.
Milton Keynes City Council has also implemented AI-assisted tools which validate documents submitted in the planning process.
Construction output slows
This AI tool has reduced application processing time by around eight days on average, according to the council.
Ashford, Rother District and West Northamptonshire councils are piloting systems designed to automate application validation, document checks and consultation analysis.
Labour’s housebuilding target has come under increased pressure in recent months, as the Iran war adds to the pressures facing the construction sector.
Only 300,000 homes were added to the housing stock in the first 18 months of Labour’s government – nearly a third of the pace required to meet 1.5m, according to government estimates.
In April, the construction sector suffered the steepest decline in output since November 2025 as builders were hit by surging costs and red tape.
Harrison Reeves, chief executive of Valon – an AI planning tool being used by some councils – told CityAM that councils are held back by out-of-date tech.
He said: “AI can help remove a lot of that repeatable workload, helping planners move applications through the system faster while focusing on decision-making and complex cases.
“If the government is serious about delivering 1.5m new homes and accelerating critical infrastructure projects, improving how planning departments operate day to day within the system we already have has to be part of the solution.”
AI ‘no silver bullet’
Paul Rickard, chief executive of London-based housebuilder Pocket Living, told CityAM AI should not be viewed as a “silver bullet,” and called on the government to do more to boost housebuilding.
“Speeding up planning decisions is only part of the delivery challenge, with viability remaining a key issue for many due to rising development costs and subdued demand, all issues which we want to work on with the government to urgently address,” he said.
Industry body Real Estate UK also said the government should do more to streamline the planning system to make housebuilding quicker.
A spokesperson for the ministry of housing, communities and local government said: “AI is reshaping planning – meaning quicker decisions made for communities. That’s why we are working with a number of local authorities to trial new and innovative ways to implement AI.
“We’re also overhauling the planning system, supporting developers, and investing a record £39bn in social and affordable housing,” they added.