Housebuilders who leave sites unfinished could be stripped of land under new rules

24 May 2025, 22:30 | Updated: 24 May 2025, 22:37

Housebuilders who leave vital development sites in England unfinished for years could face losing their land to local councils under new government rules.

For the first time, developers will have to commit to delivery time frames before they get planning permission.

They will also have to submit annual reports showing their progress to councils to keep them on track.

Housebuilders who secure planning permissions “simply to trade land speculatively” could face penalties worth thousands per unbuilt home, the government said.

The government hopes the new proposals will see promised new homes delivered faster.

Deputy Prime Minister and Housing Secretary Angela Rayner said: “This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction.

“In the name of delivering security for working people, we are backing the builders not the blockers.

“Now it’s time for developers to roll up their sleeves and play their part.

“We’re going even further to get the homes we need. No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder.”

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Large housing sites can take more than 10 years to build, but those with more affordable home can be built twice as fast, the government said.

On Sunday, the government is publishing a Planning Reform Working Paper setting out the proposals.

Housing charity Shelter welcomed the proposals.

Charlie Trew, head of policy at Shelter, told LBC News: “It’s really good to see that the government’s starting to get tougher on private developers.

“We’ve got about 1.3 million households waiting for a social home. Homelessness is at really, really high levels so we absolutely need new homes and particularly genuinely affordable social homes built at speed.”

He added: “Developers can drag their heels, so it’s really important to make sure that they do build out and build fast.

“But it’s more important that we do build those genuinely affordable social rented homes with rents tied to local incomes, because that’s the only thing that will end the housing emergency, and that’s why we also need investment alongside this.”

Kevin Hollinrake, the shadow housing secretary, said: “We need more houses for people in Britain and we support measures to ensure developers speed up housebuilding.

“But they are adding so many burdens on builders, their targets already seem like a distant memory. And as Rayner has admitted live on air, many of these houses will end up going to migrants.”

The senior Conservative added: “With Labour’s open-door border policy, this problem is only going to get worse, not better. And many hardworking Brits will be shut out of the housing market forever.

“In the same week that Angela Rayner has been caught red-handed plotting to raise everyone’s taxes, it’s clear she doesn’t have the interests of working people at heart.”