Government pledges faster delivery of promised homes, warns: ‘No more sites gathering dust’
Thousands of new homes promised to local communities will now be delivered more swiftly, under sweeping new government proposals designed to tackle delays and prevent developers from sitting on planning permissions for years.
For the first time, housebuilders will be legally required to commit to clear delivery timeframes before receiving planning approval. The move aims to hold developers accountable, ensuring they help address the housing crisis and deliver stability for working families.
Under the changes announced on Monday, firms will also have to submit annual progress reports to local councils. Developers who consistently fail to build out consented sites—or acquire planning permission merely to trade land—could face a ‘Delayed Homes Penalty’ worth thousands of pounds per unbuilt home. These funds will go directly to local planning authorities.
Further sanctions may apply in cases of deliberate inaction, including the acquisition of stalled sites by councils in the public interest and possible bans on future planning permissions for non-compliant developers.
“No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder.”
– Deputy Prime Minister and Housing Secretary Angela Rayner
Large housing projects often take up to 14 years to complete, keeping young people and working families locked out of affordable homeownership. To counter this, the government will also trial a rule requiring large developments (over 2,000 homes) to default to mixed-tenure housing—shown to double build-out speeds when 40% or more of units are affordable.
“This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction,” said Deputy Prime Minister and Housing Secretary Angela Rayner.
“No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder. Through our Plan for Change, we will deliver 1.5 million homes, fix the housing crisis and make the dream of home ownership a reality for working people.”
The policy is a central pillar of the government’s Plan for Change, targeting the construction of 1.5 million homes during this Parliament and driving the biggest surge in social and affordable housebuilding in a generation. Work is already underway through the reformed National Planning Policy Framework, including binding housing targets for councils and £6.8 billion in projected economic gains by 2030.
The proposals build on last summer’s streamlining of the planning system, which saw developers pledge to accelerate build-out rates. With the new enforcement mechanisms, the government says the time has come for the industry to honour that promise.
Local authorities have welcomed the reforms. Councillor Adam Hug, housing spokesperson for the Local Government Association, said: “Too often councils are frustrated when developers don’t build the homes, they’ve secured permission for. The new penalties and powers to acquire stalled sites are essential steps. It ensures that local taxpayers don’t lose out—and that much-needed homes are actually delivered.”
While noting that private developers play a vital role in addressing the housing shortage, the LGA also urged the government to further empower councils to directly build affordable, high-quality homes at scale.
The changes are set to be reinforced by the upcoming Planning and Infrastructure Bill, projected to add up to £7.5 billion to the UK economy over the next decade.
