England faces fresh housing crisis as 55 councils SCRAP planning targets in a victory for NIMBYs: 77,000 fewer new homes could be built each year leaving first-time buyers in limbo.
The number of housing projects given the go ahead is at lowest level since 2006. An industry leader has warned the Government has created a 'nimby's charter'. The number of housing projects being given the go-ahead in England has plummeted, sparking fears of a fresh housing crisis. Figures released by the Government show the number of housing projects granted planning permission last year fell to the lowest level since 2006.
It comes as 55 councils scrapped targets to provide a steady supply of secure and affordable homes, partly spurred on by a Tory rebellion which forced Secretary of State for Levelling Up Michael Gove to abandon a mandatory target of 300,000 new homes a year. The move led to 25 local authorities abandoning their plans to reach the targets that had been set while 30 councils had abandoned their plans before the U-turn.
The figures have sparked fears of a fresh housing crisis with senior industry leaders warning Government reforms are creating a 'nimby's charter'. Executive chairman of the Home Builders Federation Stewart Baseley told the Times: 'The collapse in planning permissions is a direct result of the Government's increasingly anti- development policies and negative rhetoric which has effectively created a nimby's charter.
Ministers have capitulated to anti-development backbenchers and now 55 local authorities have abandoned their housing plans, with others following every week. The social and economic consequences could be felt for decades. Developers also warned that 77,000 fewer homes could be built each year, with the fewest homes being built in the areas with the greatest housing demand.
Mr Gove's own constituency of Surrey Heath has abandoned development plans, as well as areas like Buckinghamshire, East Hampshire and North Somerset. Shadow Housing Minister Matthew Pennycook also told the Times the Government had 'set in train a collapse' in housebuilding across England which would exacerbate the housing crisis and thwart economic growth.
A Department for Levelling Up, Housing and Communities spokesman told the Times, "we remain committed to delivering 300,000 new homes per year. The proposed changes to the planning system are designed to support areas to get more local plans in place. They will stop communities being exposed to development by appeal, where developers push new sites through the system before they have built out existing permissions."
Rishi Sunak reveals why he ditched housebuilding targets
Prime Minister Rishi Sunak has admitted that he opted to scrap the 300,000-a-year new homes target due to pressure from Tory members and councillors. Sunak got rid of the longstanding target last December, which was introduced in the 2019 Conservative Manifesto.
Sunak told ConservativeHome: “I spent a lot of the time over the summer when I was talking to so many of our members, so many of our councillors, about our planning system and their views on it. “What I heard, consistently, particularly from our councillors and our members, was what they didn’t want was a nationally-imposed, top down set of targets imposed telling them what to do.”
Lisa Nandy, shadow housing secretary, said, “it is utterly shameful that the prime minister admits he ditched housing targets because he’s too weak to stand up to Tory members. That decision has pushed housebuilding off a cliff and exacerbated a housing crisis that was already causing misery for millions of families and young people, but Rishi Sunak clearly thinks that’s all OK because a few thousand Tory members are happy. “We need a prime minister that puts our country before his party.”