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Saturday 24 May 2025 10:30 pm  |  Updated:  Saturday 24 May 2025 3:10 pm

New rules could see housebuilders who leave sites unfinished stripped of land

By: CityAM reporter

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Average house prices in June flatlined in the UK
“Rebalancing risk is central to our strategy,” the FCA said.

Housebuilders who leave vital development sites unfinished for years could face losing their land to local councils under new Government rules.

For the first time, developers will have to commit to delivery time frames before they get planning permission.

They will also have to submit annual reports showing their progress to councils to keep them on track.

Housebuilders who secure planning permissions “simply to trade land speculatively” could face penalties worth thousands per unbuilt home, the Government said.

The Government hopes the new proposals will see promised new homes delivered faster.

Deputy Prime Minister and Housing Secretary Angela Rayner said: “This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction.

“In the name of delivering security for working people, we are backing the builders not the blockers.

“Now it’s time for developers to roll up their sleeves and play their part.

“We’re going even further to get the homes we need. No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder.”

Large housing sites can take more than 10 years to build, but those with more affordable homes can be built twice as fast, the Government said.

On Sunday, the Government is publishing a Planning Reform Working Paper setting out the proposals.

Read more

Councils turn to AI to boost housebuilding

The Planning and Infrastructure Bill was introduced to Parliament earlier this week.

Housing charity Shelter welcomed the proposals.

Alicia Walker, assistant director of advocacy and activism at the charity, said: “It’s good to see the Government getting tougher on private developers. With 1.3 million households waiting for a social home and homelessness continuing to climb, we urgently need new homes built at speed.

“Developers drag their heels when building new homes to keep prices high and make bigger profits – often dodging their responsibility to build social housing altogether.

“Meanwhile, thousands of families who are bearing the brunt of the housing emergency, homeless in temporary accommodation or crushed by skyrocketing rents, cannot afford to wait.

“Getting private developers to build new homes faster is crucial, but the only way to end the housing emergency for good is to get councils and housing associations building social housing as well.

“To do this, the Government must invest in building 90,000 social rent homes a year for 10 years in the upcoming Spending Review.”

Kevin Hollinrake, the shadow housing secretary, said: “We need more houses for people in Britain and we support measures to ensure developers speed up housebuilding.

“But they are adding so many burdens on builders, their targets already seem like a distant memory. And as Rayner has admitted live on air, many of these houses will end up going to migrants.”

The senior Conservative added: “With Labour’s open-door border policy, this problem is only going to get worse, not better. And many hardworking Brits will be shut out of the housing market forever.

“In the same week that Angela Rayner has been caught red-handed plotting to raise everyone’s taxes, it’s clear she doesn’t have the interests of working people at heart.”

By George Lithgow, PA

Read more

Local authorities thwart housebuilding with ‘manifestly unfair’ council tax raid on developers

Rachel Reeves at construction site, inspecting housebuilding progress, highlighting Labours commitment to housing developm...

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