General Election 2024

General Election 2024

The Manifestos' positions on housing

In this Insight we consider the housing commitments that five of the main political parties have outlined in their manifestos ahead of the 4 July General Election.
In the past fortnight, the leading political parties have been publishing their manifestos (and one ‘contract’) to entice voters with their proposed agenda for government. Cumulatively, the manifestos of the five parties[1] that we have reviewed total c. 409 pages, with housing and planning featuring on at least 23 pages.
 
Clearly, with many of the manifesto comments being soundbite representations of a wider policy objectives, we can expect lots of the detail to be missing from these documents. However, they do provide an important overview of the priorities and direction for each party.
 
With much pre-election-announcement commentary about housing, many of the housing and planning-related policies have been well-trailed already. However, the manner in which they are presented within each manifesto also indicates the importance that each party is giving to these critical policy matters. Most notably, Labour’s manifesto positions its proposed planning reforms and housing delivery as a key mechanism to “kickstart economic growth”, indicating the wide-ranging opportunity it creates beyond simply meeting housing needs.
 
The Lichfields Think Tank has prepared an interactive infographic[2], providing a succinct synopsis of a wide range of planning-matters in each manifesto. This Insight unpacks the commitments made by the leading political parties in relation to housing delivery. It will focus on their policy objectives and – where they have set them out – consider the mechanisms they propose to achieve these, as well as the steps that they might need to take to do so.
 
 
How we have selected the manifestos to analyse
The next government will be led by either the Conservative or Labour parties. We have therefore focused our attention on these parties. However, notwithstanding current indications from polling results, it is possible that neither party will win a majority and so agreement with other parties might be sought – be that in terms of formal coalition or a confidence and supply agreement – or that a minority government seeks to rule through negotiations with other parties on a legislation-by-legislation basis. In that case the policies of the other parties could be a major consideration and a basis for power-sharing (or other) negotiations. We have therefore also considered their respective positions.
 
Their respective positions could also have an important bearing on any debate about primary legislation (should this be required). Again, in advance of knowing the composition of the Commons after the election, this is a relevant consideration.
 
The BBC and ITV debates of 7 and 13 June included senior representatives of the seven main parties – Conservative, Labour, Liberal Democrats, Green Party, Plaid Cymru, SNP and Reform UK. These were selected based on the number of seats they held in Parliament prior to it being dissolved and national poll ratings. While any (formal or informal) cross party agreement might include SNP/Plaid Cymru or indeed any of the Northern Irish parties, it is recognised that planning is a devolved policy issue, and this is a UK parliamentary election. As such, the position of these parties in respect of planning and/or housing would be restricted to Scotland, Wales and Northern Ireland respectively and would be matters for discussion at the time of elections in each of those countries.
 
For this reason, our review has focused on the manifestos (and contract) of the Conservatives, Labour, Liberal Democrats, Green Party and Reform UK.
 
Following the election announcement, we predicted a range of housing factors[3] that the party’s manifestos were likely to focus on. Broadly, these matters have formed the basis for many policy statements, and in our following analysis we breakdown what each party has (or has not) said about these.
  

   

The need to increase the supply of housing

As expected, the significant need to increase the supply of housing is recognised in all the manifestos we have analysed. However, the degree to which they make commitments to increase delivery differs significantly:
 
The Liberal Democrats have been the boldest, setting a target of 380,000 new homes in every year of the next Parliament. This sits significantly above the Conservatives – who have increased their target to an average of 320,000 from the now well-established position of 300,000 dpa – and Labour, who have proposed a target consistent with the current figure of 300,000 homes per year.
 
However, the manner in which these figures themselves have been presented also varies; the Conservatives and Labour have set cumulative target for the period of Parliament (1.6m and 1.5m respectively), while the Liberal Democrats set an annual target. This gives the Conservatives and Labour some flexibility to build up capacity over the parliamentary period, but the Liberal Democrats could be perceived as having failed if their annual target is missed in any individual year.
 
What is stark is the extent to which all of these parties will need to boost delivery from either the average achieved under the previous Labour government[4], or since 2010[5]. Compared even with the most recent peak in delivery in 2019/20[6], the delivery of housing would need to consistently increase by a further 20% for Labour, 29% for the Conservatives and 53% for the Liberal Democrats. To give these figures some context, the rate of average housing delivery increased by just 8.5% between the periods of 2001/02 to 2009/10 (under Labour) and 2010/11 to 2022/23 (under the Conservatives).
 
Housing delivery for at least the first two years of Parliament is likely to be inherited (in full or in part) from the current administration and its existing policy agenda. This is because the length of time that it takes to deliver the first home on site from the submission of an outline planning application is, on average, around 3.8-6.7 years[7]. This accounts for the discharge of planning conditions, procurement processes, site preparation and construction. The next government is therefore going to be reliant on the existing pipeline of planning permissions initially and it will take some time for its new policy measures to filter through the planning and construction process and to new housing completions on the ground.
 
The Home Builders Federation’s latest record of new housing pipeline[8] continues to show a steady decline in the number of homes being approved[9]. In England, just 244,919 homes were approved in 2023, and on the basis of pro-rating 2024 Q1 results for the remainder of the year, this could see just 215,448 approved. 
 
In practice, not all of these will be delivered. If they were, however, it would mean that the total delivery in the first two years of Parliament would be c.460,000 homes. If this is a consistent assumption, it means that to achieve their respective cumulative targets:
 
  • The Conservatives would have to deliver 1.14m homes in the final 3 years of Parliament – c.380,000 a year; and,
     
  • Labour would need to deliver 1.04m homes in the final 3 years of Parliament – c.347,000 a year.
 
As the Liberal Democrat manifesto has set out an annual target, they would (arguably) not be required to make up any shortfall from the first two years. However, the target of 380,000 dwellings per annum equates to 1.9 million over the five-year parliamentary term. Achieving this overall level of housing in the context of the estimated delivery of 460,000 in the first two years would necessitate the delivery of 480,000 per annum in the final 3 years of Parliament.
 
  
In order to accommodate undelivered or delayed schemes, it will be necessary for a surplus of planning permissions to be granted beyond even these figures. Lichfields research in 2021[10] found that to reach 300,000 homes per year, an additional 474 to 1,385 implementable planning permissions would be required on medium to large sites (50-250+ homes).
  
We recognise that mechanisms to speed up delivery could make quick wins and alter the anticipated delivery for years 2024-2025 and 2025-2026. For example, outside of its manifesto Labour has vowed to update the NPPF within their first 100 days in government, if elected, including restoring mandatory housing targets.
  

   

 

The need to increase the supply of affordable housing

Only two of the five parties – the Liberal Democrats and Green Party – have set explicit targets for the delivery of social housing, but all have set out their objectives for this important housing tenure.
 
There is surprisingly little on how to increase the supply of affordable housing across the manifestos. The Liberal Democrats and the Green Party both commit to the delivery of 150,000 social homes per annum. There is no detail regarding the tenure split of affordable housing, and it is possible that the term ‘social housing’ is potentially being used as a catch-all term for affordable housing, rather than representing a commitment to the delivery of housing for social rent.
  
In 2019, the National Housing Federation and Crisis set a target for “145,000 social and affordable homes each year, including 90,000 homes for social rent”. So, either the Liberal Democrats and the Green Party are conflating social housing with all affordable tenures, or they are each proposing a 67% increase in the social housing target – an ambition that would raise a significant deliverability challenge.
  
This deliverability challenge is borne out by the fact that affordable housing is almost always delivered as a proportion of market housing. Based on averages in England over the past five years, affordable housing of all tenures equated to c.58,000[11] per year and market housing completions c.237,000[12] per year. A typical average is therefore 24.5% of homes being delivered being a form of affordable housing. If a similar ratio is required to achieve the delivery of the targeted 150,000 ‘social homes’, this would require levels of overall housing delivery to be more than 600,000 per annum – quite an extraordinary level of increase from current rates of delivery.
  
The Conservatives and Labour also promise to increase affordable housing delivery and whilst they each refer to different tenures, neither party details how this will be achieved in practice. There is a general correlation that more housing will equal more affordable housing and so if policies come forward to increase housing delivery, we will likely see an increase in affordable housing delivery. However, this will be dependent on viability issues in relation to section 106 agreements. If the same typical ratio of 24.5% affordable housing is adopted, then the Conservatives could see the number of affordable homes increase to c.78,400 p.a., and Labour an increase to c.73,500 p.a.
  
 
 

The approach to delivering housing growth

Location of housing delivery
Detail on the potential geographic distribution of new housing is very limited across the manifestos. The headline targets are clear, but how they will filter through into local policy and local plans remains to be seen; the elected government will have to get to grips with this challenge very quickly.
 
The Conservatives, Labour, Liberal Democrats and Reform UK all adopt a brownfield-first approach to housing delivery in their manifestos. Conservatives, Labour and Reform UK propose to do this with a ‘fast-track’ route through the planning system for new homes on previously developed land, albeit the parties stop short of providing details of what this will mean in practice.
 
While such a ‘fast-track' approach would help prioritise the use of brownfield land, and build upon existing policy support for such development, the detail of how these would be structured is still unclear. The existing – well-established – NPPF presumption in favour of sustainable development has already been the subject of consultation for strengthening by the Conservative government. This would be a clear opportunity for the new administration to shift the balance in favour of such sites.
 
While brownfield sites have obvious benefits in being able to turn liabilities into assets, regenerating our urban centres and being sustainably located with existing infrastructure, it also faces significant challenges[13]:
 
  • Previous Lichfields research[14] has established that, although there is enough brownfield land to build c.1.4m additional homes, it cannot all be built right now. Some of it is occupied by businesses on long leases, in other places it has been concluded that development is not realistic, and in others it will take decades to develop when steps such as land assembly and new infrastructure delivery are accounted for.
     
  • Furthermore, there is not enough brownfield land to meet identified housing needs. If every plot of brownfield land identified in brownfield land registers was developed, it would secure less than a third of the 4.5m homes for which local plans must provide over the next 15 years; no region has a surplus. In the north of England, the brownfield register capacity equates to just 44% of the homes needed and in London, the South and Midlands, it is less than a quarter.
      
Notably, the Labour manifesto is the only one to explicitly recognise that ‘brownfield development alone will not be enough to meet our housing need.’
 
  • Brownfield developments often face viability challenges as a result of the presence of abnormal costs associated with demolition, decontamination and site preparation works. This can result in these sites being able to support a lower level of affordable housing delivery.
     
  • Such viability challenges can also necessitate proactive delivery support from the public sector for the biggest and most complicated projects. Such support might relate to the creation of a vision; direct provision of infrastructure (such as new rail stations); acquisition of land as part of a land assembly process; provision of financial incentives; or expediting planning decisions.
     
In response to this viability challenge, the Liberal Democrats and Reform UK each propose the provision of financial incentives to encourage brownfield land development. Reform UK propose to achieve this aim through tax incentives, whilst the Liberal Democrats have not offered any detail on the form of their financial incentives. Neither party provides details of what the financial incentives could be used for, how much money will be made available or where the money will come from.
 
  • Importantly, brownfield land is often best suited to higher density schemes; 48% of the homes envisaged on brownfield registers sites are flatted development (built at over 100 homes per hectare) whereas just 17% of households are likely to live in apartments. This can mean not providing for family homes which are valued by those with or wanting children to upsize locally or to continue living in cities.
 
These points are crucial to recognising the challenge of achieving the identified levels of housing delivery through brownfield-only policy. They also demonstrate that – in practice – it will be necessary for our housing needs to be met through a mix of brownfield and greenfield land. This gives rise to the question of whether Green Belt land might be needed to accommodate future housing growth.
It is in this context that our graphic below summarises each party’s approach to development in the Green Belt.
 
 
Approaches to housing delivery
Building on the overarching principle of either brownfield-first (and only), or a combination of brownfield and greenfield sites, each party has given some indication of their proposed method of achieving their housing targets. The following table summarises the key themes from each party’s manifesto.
 
 
One of the key distinguishing approaches between the parties is in relation to the use of new towns/garden cities as a mechanism of delivering housing at a strategic scale. Both Labour and the Liberal Democrats propose the delivery of housing through new towns.
  
New towns offer the opportunity to drive nationally significant projects, providing large numbers of new homes in the long term, with the added benefits of being comprehensively designed, with all of the necessary infrastructure, and the ability for higher proportions of affordable housing compared to the national average.
  
However, given the significant time taken to navigate the planning process and commence the delivery of such large-scale developments, they have a long lead-in time from their conception and approval. Lichfields’ research in 2024[15] shows that sites of 1,000+ dwellings take on average five years to obtain detailed planning permission, then a further 1.3-1.6 years from first application validation to first dwelling completion. It would be necessary for developments of this scale to already be at an advanced stage in order to see any delivery in the next Parliament; but, if they are, they provide an effective opportunity to unlock housing in years 3-5 of Parliament, which will be key to delivering housing targets.  
  
To speed up the delivery of housing sites, the Liberal Democrats propose ‘introducing ‘use-it-or-lose-it’ planning permission for developers who refuse to build. The effectiveness of this mechanisms seems limited in that time restrictions on permissions already exist, and that there is not a particularly prevalent issue with developers refusing to build unless in regard to site constraints and other issues.
  
Reform UK propose the introduction of a ‘loose fit’ planning policy for large residential developments. It is unclear what such a policy would look like, and therefore it is hard to comment on its likely effectiveness.
 
 
Addressing issues of local planning authority resources
The financial and resource pressures facing local authorities, including their planning functions are well-established. Addressing such pressures will be key to boosting housing delivery. The current government has used a variety of mechanisms to seek to address this, most notably through the increase in planning application fees, although it stopped short of ring-fencing the extra revenue from those fees for planning departments.
 
Only Labour, the Liberal Democrats and Green Party address this issue specifically. Labour commit to support local authorities by funding additional planning officers, through increasing the rate of the stamp duty surcharge paid by non-UK residents, and target the appointment of 300 new planning officers. However, with more than 300 local authorities in England alone, more detail about how this additional resource will be utilised – be it geographically or in targeted locations – is needed before conclusions about their efficacy can be drawn.
 
The Liberal Democrats commit to “properly fund” local planning departments to improve planning outcomes, by allowing local authorities to set their own fees. While this suggests a reward for good performance, it could also imply sanctions where performance related outcomes are not achieved. The Green Party recognises that “local authorities need to be given the resources to act as guardians of the land and the built environment” but have not set out their approach to achieve this.
 
Balancing growth & environmental interests
While housing is well-established as a crisis of a humanitarian nature, the response to address this needs to be sensitively balanced against the need to protect our natural environment. With consideration to the climate and energy crises, all the parties have considered this issue to a degree.
 
Our interactive infographic[16] summarises the key manifesto statements regarding the environment and energy policies. With the exception of Reform UK, each party has emphasised the need to improve the energy efficiency of existing homes. The Green Party, Liberal Democrats and Labour have all committed to building more sustainable homes, with the Green Party campaigning for them to be Passivhaus or equivalent, and the Liberal Democrats seeking to ensure all new homes are zero-carbon. While the Conservatives are also committed to tacking climate change, their commitments are more cautious, by looking to ensure that offset requirements for new homes are proportionate, without compromising environmental outcomes.
 
These commitments, together with other potential requirements such as the Liberal Democrat proposal to require all new development to achieve a significant biodiversity net gain of up to 100%, will all add further burdens to the delivery of housing.
 
Measures to support our response to climate change through new development are crucial, but in turn they will need to be supported through mechanisms that ensure overall delivery is not unduly hindered.
  

   

Summary

There is unanimous agreement across the manifestos that significant increases in delivery need to be achieved to provide the homes that we need. The scale target varies between the parties, but what is clear is that, by any measure, there will need to be a transformational shift in delivery beyond that which we have experienced in recent years.
 
A principle of brownfield-first is also consistent across the manifestos in recognition of the clear benefits of using such land to meet our housing needs. However, with the delivery of homes in the first two years of Parliament being reliant on planning permissions already granted, there will need to be a significant step up for the final three years to achieve the parties’ targets. It is here where there is the most interesting divergence in approach.
 
Labour and Liberal Democrats have set out ambitious plans for new towns (or garden cities), with the former going further and acknowledging that there will need to be a strategic consideration of greenfield and Green Belt land to meet our needs. The Conservatives continue to prioritise an urban-first approach through ‘gentle densification’, making clear that their cast iron commitment for the protection of the Green Belt.
 
Since publication of the manifestos, Labour has made subsequent announcements about their intention to immediately amend the NPPF; ‘undoing’ the changes made by the Conservative government in December 2023. Additionally, both the Conservatives and Labour recognise the need to address the issue of nutrient neutrality as a mechanism of unlocking a swathe of homes already in the pipeline, immediately.
 
It is therefore clear that there is going to have to be a multi-faceted approach: one which delivers immediate change to boost permissions and supply in the short term, while simultaneously positioning the country for the second half of Parliament, when the new government’s policies could make the most substantial impact.
 
As our Economics Team[17] summarised last week, steps need to be taken by the next government to unlock the country’s economic growth. However, the effectiveness of any future planning and housing policies will be impacted by external constraints relating to the availability and capacity of a construction workforce; training and skills issues; and both shortages in construction materials and their high prices.
 
While the planning and housing proposals outlined in these manifestos indicate that the sector may receive the reassurance and stability that it’s been seeking, it will remain subject of external market forces, and ultimately it could be these which determine their success or failure.
  

   

Insight authors

Simon Coop

Senior Director
VIEW PROFILE

Harry Russell

Planner
VIEW PROFILE

Amy Jones

Planner
VIEW PROFILE

      
     

Footnotes


[1] For the reasons set out herein, our review has focused on the manifestos of the Conservatives, Labour, the Liberal Democrats, the Green Party and Reform UK.

[2] Blue belt, grey belt, wild belt – the manifestos compared. Available here

[3] 43 days to (pledge to) solve the housing crisis. Available here

[4] Between 2001/02 and 2009/10, the average housing completions was 181,311 dwellings per annum (Live Table 118 – Annual net additional dwellings, England).

[5] Between 2010/11 to 2022/23, the average housing completions was 196,751 dwellings per annum (Live Table 118 – Annual net additional dwellings, England).

[6] The most recent peak in housing completions in England was in 2019/20, when 248,590 homes were delivered (Live Table 118 – Annual net additional dwellings, England).

[7] Figure 3.1, Start to Finish 3, Lichfields March 2024.

[8] Home Builders Federation, New housing pipeline, June 2024. Available here

[9] For England, there was a 19% drop in homes approved between 2022 and 2023.

[10] Feeding the Pipeline. Lichfields. 2021. Available here

[11] Live Table 1000: additional affordable homes.

[12] Live Table 122: housing supply net additional dwellings.

[13] Building on brownfield alone won’t solve the housing crisis, The Times, Matthew Spry. Available here

[14] Lichfields, Banking on Brownfield. Available here

[15] Start to Finish 3 Available here

[16] Blue belt, grey belt, wild belt – the manifestos compared. Available here

[17] Time to turbo-charge economic growth - Available here

 

Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116