In a statement to the House of Commons on 30 July, Deputy Prime
Minister Angela Rayner
announced plans to reform national planning policy and a
"council house revolution", including the major reform of the Right
to Buy scheme. Under the new proposals, local authorities
will be expected to meet statutory targets for the number of new
homes built in their areas, which will be calculated according to a
new methodology that assumes proportionate household growth in all
areas. Additionally, there will be an uplift in areas where homes
are currently most unaffordable.
The impact will see most areas, other than London, have their
targets increased. English local authorities will be expected to
plan for 370,000 new homes a year, a significant increase from the
previous Government's ambition (not a formal target) of 300,000
homes. This will require many authorities to review the use of
green belt land and may need to develop on so-called 'grey belt'
land, which, while being part of the green belt, is of low
quality. Details of the proposal have been published in a
consultation paper. As well as increasing local housing
targets, the Government will expect a larger proportion of them to
be affordable homes, including homes for social rent. It
plans to introduce more flexibilities to the Affordable Homes
Programme, although future AHP funding will not be decided until
the conclusion of the Spending Review.
In a separate
statement, Chancellor Rachel Reeves announced that the Spending
Review will progress in two phases. Spending plans for
2025/26 will be announced in an Autumn Statement on 30 October, but
the Review will continue through the winter, concluding in a Spring
Budget, which will settle plans for the next three years.
In her speech, Angela Rayner said:
"I also recognise that
councils and housing associations need support too. So, my Rt
Hon Friend the Chancellor will set out plans at the next fiscal
event to give them the rent stability that they need to borrow and
invest."
The previous Government announced that council rent increases
for 2025/26 will be limited to CPI + 1%, so this presumably refers
to a longer-term settlement. The next fiscal event is the
Autumn Statement on 30 October.
The last part of Angela Rayner's statement announced reforms to
the Right to Buy scheme:
o A review of the increased discounts introduced in
2012.
o A consultation in the autumn on wider reforms to
the scheme.
o Increased flexibilities for councils when using
Right to Buy receipts to fund new homes or acquisitions.
Angela Rayner also
wrote to all local authority Leaders and Chief Executives on 30
July to explain these proposals and inform them of her intention to
introduce secondary legislation to bring Awaab's Law into effect
once Parliament returns.