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Revisions to the National Planning Policy Framework (NPPF) and other announcements on planning reform

This factual briefing provides a summary of the changes to the revised NPPF from the version consulted on earlier this year, with a focus on the areas that the LGA has lobbied on.

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Introduction

The Ministry for Housing, Communities and Local Government (MHCLG) published its revised National Planning Policy Framework (NPPF) on 12 December 2024.

Alongside the revised NPPF, additional documents have also been published and can be found here. These include:

  • Government response to the proposed reforms to the National Planning Policy Framework and other changes to the planning system consultation
  • Indicative local housing need (December 2024 – new standard method)
  • Updated Planning Practice Guidance (PPG)

This briefing provides a factual summary of the changes to the revised NPPF from the version consulted on earlier this year, with a focus on the areas that the LGA has lobbied on – please note this is not an exhaustive list and does not cover every change

The LGA’s response to the Government’s consultation on reforms to the planning system including a revised NPPF can be found here and our press release can be found here.

The archived NPPF (November 2024) can be found here.

All changes to the NPPF are immediate, other than those relating to plan-making set out in the transitional arrangements.

Key reforms to the planning system or National Planning Policy Framework

Reintroduction of Mandatory Housing Targets

The Government intend to make the changes set out in the consultation, reversing the changes made in December 2023 to what was previously paragraph 61 regarding the word ‘advisory’ and removing the reference to the exceptional circumstances in which the use of alternative approaches to assess housing need may be appropriate. Revised planning practice guidance on assessing housing needs and additional guidance on setting a housing requirement have been published.

Restoration of Five-Year Housing Land Supply Rules

The Government confirmed that local planning authorities are again required to demonstrate a five-year housing land supply. There are many authorities whose local housing need figures will be substantially larger than their adopted or emerging local plan housing requirement figures, and to help close the gap, Government are introducing a new requirement that authorities with plans adopted under the old standard method must provide an extra year’s worth of homes in their 5-year housing pipeline.

A new Standard Method

The Government will take forward the proposals to introduce a new standard method that uses housing stock to set a baseline figure. The method will use 0.8% of existing stock as the baseline. As noted in the consultation, over the last 10 years housing stock has grown nationally by around 0.89%. Setting a baseline of 0.8% provides a consistent base for growth, which is then increased to reflect housing affordability pressures, setting ambitious expectations across the country while directing housing to where it is most needed.

Affordability requirements in the Standard Method

Government will increase the threshold from which the adjustment applies from where affordability is 4 (so where median house prices are 4 times median earnings) to 5. Changing the threshold from which the affordability adjustment applies from 4 to 5 means some of the most affordable local authorities will no longer be subject to the affordability adjustment, and that the overall impact of the adjustment is reduced meaning overall numbers would fall. To ensure housing need remains at the level Government considers appropriate, the second change Government are making is to increase the scale of the affordability adjustment – instead of a multiplier of 0.6, it will set this at 0.95.

Grey belt definition

The grey belt policy will be introduced and the Government have revised the definition from what was consulted upon based on consultation feedback to ensure clarity. Further guidance for local authorities will be released in January 2025 to ensure a consistent approach to Green Belt land. The definition of grey belt land is: "For the purposes of plan-making and decision-making, ‘grey belt’ is defined as land in the Green Belt comprising previously developed land and/or any other land that, in either case, does not strongly contribute to any of purposes (a), (b), or (d) in paragraph 143. ‘Grey belt’ excludes land where the application of the policies relating to the areas or assets in footnote 7 (other than Green Belt) would provide a strong reason for refusing or restricting development."

Guidance on the approach to Green Belt

Government will be providing further guidance in January 2025, and have also included additional detail within the NPPF to specify the importance of Chapter 9 in assessing the sustainability of locations for development.

Golden Rules for Green Belt development - Affordable Housing

The Government believes local planning authorities are best placed to set tenure mix but note the concerns that setting a national 50% affordable homes target could lack flexibility and fail to account properly for regional variation. For this reason, the government will allow local planning authorities to set their own Golden Rules in relation to affordable housing through their new local plans. In order to balance the need for an ambitious affordable housing target with the viability challenges that may occur, particularly in low value areas, Government will adopt a ‘policy plus’ approach, in which Green Belt development should deliver an amount of affordable housing that is 15 percentage points above the relevant local affordable housing target that would otherwise apply, subject to a cap of 50%.

Build out

There was a strong concern over rates of build out on housing sites, and associated concerns about developer land banking. Government plans to bring greater transparency and accountability and take the steps necessary to implement build out reporting. This includes implementing the following provisions in the Levelling–up and Regeneration Act 2023, following technical consultation:

  • Housing developers will be required to formally notify local planning authorities before they commence development (via development commencement notices) and then report annually to them on their actual housing delivery (via development progress reports). This will ensure that local planning authorities can clearly identify where delays occur, enabling them to work more effectively with developers to tackle the issue.
  • Government will bring forward a measure to provide local planning authorities with the power to decline future planning applications made by developers who fail to build out earlier planning permissions granted on land in the authority’s area at a reasonable rate.

Localisation of planning fees

The government have announced their intention to take forward measures in the proposed Planning and Infrastructure Bill to introduce a power for local planning authorities to be able to set their own fees. As part of these proposals, it will conduct a comprehensive review of all national fees in order to establish a robust baseline for full cost recovery of fees and to inform a national default fee. The government intends to pursue a model that would enable local variation from a national default fee. In varying or setting their own fees, local authorities will not be able to be set fees above costs.

Transitional Arrangements

The Government has amended the proposals originally consulted on relating to transitional arrangements, and has confirmed the following:

  • For plans at the Regulation 19 stage of plan-making, instead of a blanket 200 dwellings per annum threshold, if the draft housing requirement meets less than 80% of local housing need authorities will be required to update their plan to reflect the revised local housing need figure and the revised NPPF prior to submission. Where plans at Regulation 19 need to be revised to account for the revised NPPF and local housing need, the expectation for plans to be submitted in 18 months will be extended to December 2026 where LPAs have to do significant additional work (defined as returning to the Regulation 18 consultation).
  • For plans at Examination, where the draft housing requirement meets less than 80% of local housing need the authority will be expected to begin a plan in the new plan-making system as soon as it is brought into force in 2025.
  • All earlier stage plans will be expected to be submitted for examination under the existing 2004 Act system no later than December 2026.
  • Changes to the NPPF for plan-making will take effect 3 months after publication of the new NPPF. 
  • Neighbourhood plans submitted for examination by the implementation date of the revised NPPF will be assessed against the previous NPPF; all submitted after that date will be assessed against the revised version. 

Funding to support local authorities

The Government has announced funding to support local plan delivery which will provide a direct financial contribution to local authorities that are at an advanced stage of the local plan making process (Regulation 19 stage), and that will need to revise their draft plans to accommodate the increase in their Local Housing Need figures as a result of changes in the revised NPPF. Local authorities that meet the eligibility criteria will be able to submit an Expression of Interest (EoI) to receive a share of this funding.

Revisions by chapter from the Government consultation