Planning reform alone will not fix the UK’s housing crisis
Propertymark has published a new position paper, Meeting UK house demand, moving beyond the planning system, warning that focusing solely on reforming the planning system will not deliver the number of homes the UK urgently needs.
While planning reform is frequently cited as the primary solution to the housing shortage, Propertymark’s analysis shows that changes to the planning system have not historically led to a significant decline in the number of homes built. Instead, the paper argues that a much broader set of factors must be addressed if the UK is to meet its ambition of delivering 1.5 million homes over the current parliamentary term.
Across the UK, governments have placed planning reform at the centre of their housing strategies. However, Propertymark highlights that in recent years, hundreds of thousands of homes have already been approved through the planning system, yet far fewer have been built. Over the past 25 years, the UK has averaged just 180,000 new homes a year, well below the level required to meet demand.
The position paper finds that despite improvements in the speed of planning approvals, the gap between permissions granted and homes actually built continues to widen. In some years, less than half of approved developments progressed to construction, underlining that planning alone is not the principal constraint on housing delivery.
Propertymark’s research identifies three critical issues that must be tackled alongside planning reform:
The diminished role of local authorities in housebuilding, despite their historic contribution during periods of high housing delivery
The growing number of homes with planning permission that remain unbuilt, highlighting a lack of effective incentives to deliver approved developments
Severe skills shortages and low productivity in the construction industry, limiting its capacity to build at scale, regardless of planning approvals.
The paper also raises concerns that an overreliance on large-scale developments risks slowing delivery, as larger schemes take longer to build and often exclude small and medium-sized developers who could deliver homes more quickly on smaller sites.
Propertymark is calling on governments across the UK to adopt a more balanced approach to housing delivery, one that supports local authority-led development, incentivises smaller builders, addresses construction skills shortages, and ensures infrastructure is delivered alongside new homes.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, said:
“There is no doubt that the planning system needs reform, but it is not the sole reason the UK is failing to build enough homes. For decades, homes were delivered at scale under the same planning framework because local authorities were building, skills were available, and developments were incentivised to progress quickly.
“If we continue to treat planning reform as the single solution, we risk ignoring the wider structural problems that are holding back delivery. To genuinely meet housing demand, governments across the UK must take a more holistic approach that supports builders, councils, and communities alike.”
The position paper sets out ten recommendations for policymakers, including empowering local authorities to build more homes, supporting smaller developers, coordinating infrastructure planning, and launching a national construction skills and recruitment campaign.
Propertymark warns that without action across these areas, the UK will continue to fall short of its housing targets, regardless of how streamlined the planning system becomes.
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