NPPF reform to trigger“40-year” housebuilding high

The government’s planning reforms are set to grow the economy and take housebuilding to a “40-year high”, according to forecasts from the Office for Budget Responsibility, the chancellor Rachel Reeves said today (March 26).

Delivering her Spring Statement, Reeves said that the government’s changes to the National Planning Policy Framework (NPPF) in December, including reintroducing mandatory housing targets and “driven forward tirelessly” by housing secretary Angela Rayner, would “permanently increase the level of real GDP” by 0.2% by 2029-30 - equating to an additional £6.8 billion to the economy – and 0.4% over the next decade.

Reeves used the Labour government’s planning changes as evidence of achieving growth for the country.

She also referred to OBR figures showing that net additions were estimated to reach a 40-year high under the NPPF reform, with 305,000 homes a year estimated by the end of the forecast period.

According to the government’s document on the Spring Statement, annual housebuilding is expected to rise by around 30% by 2029-30, producing an additional 170,000 homes over the forecast.

“This is the biggest positive growth impact that the OBR has ever reflected in its forecast for a policy with no fiscal cost,” Reeves stated.