NPPF changes: impact on housing developers

The government has unveiled significant changes to the National Planning Policy Framework (NPPF) as part of its ambitious plan to tackle the ongoing housing crisis.

Having pledged to deliver 1.5 million homes over the course of its parliament, the government’s updated framework introduces key reforms that will directly impact housing developers. Victoria Longmore, partner in Lodders’ Real Estate group and head of our Planning team, breaks down the key changes to the NPPF that have been announced and their potential implications.

An ambitious target: 370,000 new homes annually

The government has set an immediate mandatory housing target for councils of 370,000 homes nationally per year, marking a significant change in delivery expectations. Those areas with the ‘highest unaffordability for housing and greatest potential for growth’ will have increased targets to meet.

For developers, this updated target represents both an opportunity and a challenge; while demand for new developments will increase, scrutiny and timelines surrounding planning applications may also intensify. Housing developers should prepare for a more rigorous planning environment, but also recognise the significant opportunities presented by the government’s focus on boosting housing supply.

Introducing the ‘grey belt’

One of the most striking changes to the NPPF is the introduction of the ‘grey belt’ concept, a move designed to modernise decades-old green belt policies. While the government remains committed to prioritising brownfield sites, councils will now be required to review their green belt boundaries to identify lower-quality land – known as grey belt – that could be suitable for development.

This represents a pivotal shift in policy:

• Previously sacrosanct green belt areas may now be reviewed
• The focus will remain on safeguarding high-quality green spaces, but lower grade green belt land could become available for housing

For developers, this policy change could unlock significant new opportunities for development in areas where housing demand is acute but suitable land has historically been constrained. It will be critical for developers to engage with local planning authorities early as they update their local plans and identify potential grey belt land for release.

Councils and developers will be required to consider more social rented accommodation when building new developments, with local authorities being empowered to build ‘genuinely affordable’ new homes.

A greater responsibility for local planning authorities

Under the new NPPF, local planning authorities who don’t have an up-to-date adopted local plan must take immediate action. Councils have been given strict timetables to commit to new plans within 12 weeks, or face government intervention.

For developers, this means:

1. An accelerated focus on local planning development
2. A need to align with councils as they reassess green belt land, housing targets, and infrastructure requirements
3. Greater clarity and predictability in areas where local plans have historically been outdated or incomplete

Developers should be prepared for more proactive engagement with local authorities and for opportunities to emerge in areas where land release was previously lacking.

Supporting infrastructure and affordable housing

Another key feature of the updated NPPF is the emphasis on ensuring that housing development is accompanied by essential infrastructure and affordable housing. Any new development will need to follow what the government has described as the ‘golden rules’:

1. Brownfield first
2. Grey belt second
3. Affordable homes
4. Boost public services and infrastructure
5. Improve genuine green spaces

For developers, this means a stronger focus on delivering high-quality, well-designed developments that incorporate infrastructure such as schools, GP surgeries, and transport links. It also places greater emphasis on social and affordable housing provision within developments.

NPPF: key takeaways

Keeping its promise of 1.5 million homes will be a massive challenge for the government, but the new NPPF takes important strides towards this ambitious figure.

The changes to the NPPF represent a significant shift in housing policy. While the government’s ambitious targets will place pressure on both councils and developers, they also provide clear opportunities to unlock land and accelerate delivery.

Real estate legal experts

Lodders’ team of specialist planning solicitors have forged solid working relationships with local authorities, giving us a unique, well-rounded understanding of the UK planning system. Get in touch today to find out how we can support you.