Revised NPPF July 2024

The proposed changes to the National Planning Policy Framework (NPPF) announced by Angela Rayner include several significant adjustments aimed at addressing housing supply and urban planning. Here are the key points:

1. Mandatory Housing Targets: A new Standard Method will set mandatory housing targets reflecting urgency, aiming for 370,000 new homes per year.
2. Affordability Ratio: A stronger affordability ratio driver will be included, and previous oversupply clauses will be removed.
3. Urban Uplift Adjustment: London’s requirement is reduced to 80,000 homes per year from 100,000.
4. Housing Supply Targets: The four-year housing supply target is removed and the requirement for councils to maintain a five-year housing supply is reinstated.
5. Green Belt Review: Councils must review green belts where land is insufficient, prioritising previously developed land.
6. New Grey-Belt Definition: Major developments on grey belt sites must deliver 50% affordable housing plus necessary infrastructure, subject to a viability assessment.
7. Affordable Housing Focus: There is a shift towards Social Rent in affordable housing tenure preferences.
8. Removal of ‘Beauty’ Terminology: Terms like “beauty” and “beautiful” have been removed from the policy.

The consultation period for these changes is open until September 25, 2024. The reforms aim to address the housing crisis and encourage economic growth by facilitating better planning and development processes.

Impact on SME Developers:

• Opportunities with Windfall Sites: The return to the requirement of maintaining a five-year housing supply can help secure permissions on windfall sites where councils have insufficient land.
• Changes to Para 154: The revised threshold for harm to openness presents more opportunities for small developers to develop previously developed land like car parks.

Industry Support:

• Positive Industry Feedback: Notable figures in the development industry, such as Neil Jefferson (HBF) and Melanie Leech (British Property Federation), support the changes, citing potential benefits for housing supply and economic growth.
• Market Response: Berkeley Homes’ CEO Rob Perrins announced a return to the land-buying market following 2 and a half years out of the market.

These proposed reforms are set to invigorate the housing market, offering a strategic approach to planning and development that aligns with national housing needs and economic goals.

For more detailed information, you can read the full consultation document here.