Government believes second major overhaul of planning rules in space of year could unlock 1.8 million new homes

Other key revisions to the NPPF include making it easier for developers to build higher-density housing, a new ‘medium’ site category which eases certain planning rules, and “streamlining” standards on energy efficiency and biodiversity net gain. 

The government also wants to encourage a “more diverse mix of housing”, such as rural affordable homes and accessible homes for older people and disabled people.

“These measures will pave the way for a stable, rules-based system where developments that meet clear standards can move quickly from plans to construction – the most significant rewrite of national planning policy in over a decade,” the government said.

The policy changes published today provided more detail on the government’s policy around train stations. It proposed the policy will apply to stations served by more than two trains an hour in any one direction, which amounts to coverage of just under two-thirds of all stations in England.

Under the proposed changes, there would also be a minimum density requirement of 50 dwellings per hectare for developments around "well-connected" train stations.

Alongside this, the government aims to make densification of urban and suburban areas easier, with planning policy that is much more supportive of redeveloping corner plots, infill development between existing homes and upwards building.

“The new rail and densification policies are expected to unlock a potential 1.8 million homes in the coming years and decades,” the Ministry of Housing, Communities and Local Government (MHCLG) said.

To introduction of ‘medium’ sites – the new category for sites between 10 and 49 homes – will mean that SME builders do not face the same rules and costs as larger housing sites. 

MHCLG is consulting on lifting the building safety levy for these sites, as well as the possibility of discharging affordable housing obligations by making a cash payment to registered providers.

The proposals also include action on standards to ensure that where quantitative standards are set in building regulations, for example around energy efficiency, local authorities do not go beyond those in their local plans. 

These proposed changes to the NPPF will at this stage remain policy rather than statutory.

MHCLG is also proposing that these new decision-making policies “effectively override conflicting local policies from day one” of publication of the finalised NPPF, which is expected in spring next year after the 12-week consultation.

Alongside the NPPF reforms, the government has announced a package of measures to “ramp up” housing delivery, including boosting the roll-out of the Small Sites Aggregator across Bristol, Sheffield and Lewisham, with an extra £5m to transform 60 small brownfield sites into new social housing. 

MHCLG will work with local authorities to create new standard house designs to build more high-quality homes through modern methods of construction, and support local planning authorities with the highest levels of schemes waiting for a decision with an additional £8m.

On biodiversity net gain, the government will introduce an area-based exemption for smaller sites of up to 0.2 hectares and is consulting on an additional targeted exemption for residential brownfield development.

The government also said it will consult further on draft regulations for a national scheme of delegation, aimed at modernising planning committees, in early 2026.

Housing secretary Steve Reed said the current planning system “isn’t working well enough” and “favours obstructing instead of building”.

He added: “It has real-world consequences for those aspiring to own a home of their own and those hoping to escape so-called ‘temporary’ accommodation – we owe it to the people of this country to do everything within our power to build the homes they deserve. 

“We’ve already laid the groundwork to get Britain building, but our planning overhaul was only the first step to fix the housing crisis we face. 

“And today I’m going further than ever before to hit 1.5 million homes and place the key to homeownership into the hands of thousands more hardworking people and families.”

Chancellor Rachel Reeves said the economy has been held back for too long by “a housing system that slows growth, frustrates businesses and prices the next generation out of a secure home”.

She continued: “These reforms back the builders not the blockers, unlock investment and make it easier to build the 1.5 million new homes across every region – rebuilding the foundations of our economy and making affordable homes a reality for working people once again.”

James Bradbury, group director of growth and development at housing association Stonewater, said it is “welcome” that the changes “emphasise support for rural, social and affordable housing”.

He added: “At present, the system often holds up the delivery of affordable housing and, in our experience, schemes take considerably longer than the 13-week target for all applications with 10 or more homes.

“Planning reform is crucial to getting more homes built and speeding up the system. We welcome the clarity ministers have provided, again highlighting their commitment to tackling the housing crisis and giving the sector the tools we need to best support government with their housebuilding targets.”

Mr Bradbury highlighted that planning is “just one piece of the puzzle” and that long-term certainty in funding “remains a critical issue in the affordable housing sector”, as well as the need for more workers in the industry. 

Catherine Williams, planning director at the Home Builders Federation, said the new draft NPPF reinforces the government’s commitment to “removing barriers to homebuilding, retaining a clear focus on sustainable development while protecting the natural environment”.

She added: “Proposals to reduce the complexity should help to reduce delays, speeding up the time it takes to get permissioned sites to the point when homes can be built and giving some much-needed encouragement to a dwindling number of local SME home builders. 

“This progressive approach is urgently required if the industry is going to reverse the trend of recent years that has seen a decline in the number of homes being consented.”