The battle on housing reform

Daniel Austin, CEO and co-founder at ASK Partners, discusses how the new government in Westminster is facing a battle on housing reform.

Since taking office in July, the Labour government in England has vowed to address the housing crisis. Key initiatives include reinstating local housebuilding targets and relaxing green belt restrictions to tackle the UK’s shortage of affordable homes, with a pledge to build 1.5 million homes within the current parliamentary term.

This plan involves easing restrictions on parts of the green belt, now rebranded as the “grey belt”. Originally established to prevent urban sprawl, the green belt covers 13% of England’s land. Labour’s new “grey field” classification targets underused areas, such as car parks and green spaces, that lack significant aesthetic or environmental value.

The success of this approach will depend on the government’s ability to confront NIMBYism (Not In My Back Yard) – that is local resistance to new construction. Chancellor Rachel Reeves has acknowledged this challenge, arguing that “the answer cannot always be no”. While communities will still have a say in where homes are built, the new government insists that a certain number of planning applications must be approved, supported by 1,400 new planning officers. This policy will test Labour’s determination, particularly in regions where green belt protections are deeply entrenched.

Reeves vs NIMBYs

To navigate these challenges, the government must engage communities directly, balancing national housing needs with local concerns. The goal is not just to increase the housing supply but to create well-rounded communities equipped with essential infrastructure such as schools, healthcare facilities and transport links.

The growing popularity of build-to-rent (BTR) and co-living models underscores the market’s shift towards flexible, well-designed urban spaces beyond traditional homeownership. BTR developments often include communal amenities such as gyms and co-working spaces, attracting young professionals and families seeking community. Co-living blends private and shared spaces, encouraging social interaction while maintaining personal space.

The government’s task is to harness this trend and promote sustainable urban development – prioritising people and communities over sheer housing numbers, and ensuring that new developments create liveable, inclusive neighbourhoods. However, achieving this requires balancing national ambitions with local sensitivities. Transparent planning processes and active community engagement will be key to gaining public support. Educating local MPs and empowering them to advocate for development within their constituencies will also be crucial.

To counter opposition to green belt development, the government must clearly communicate which areas are being targeted, focusing on underutilised land that does not compromise the green belt’s original intent of preserving natural beauty and preventing urban sprawl. By demonstrating a thoughtful, selective approach, Labour can reassure communities that development will be both responsible and necessary.

Ultimately, Labour’s ability to rebrand itself as the party of home ownership will hinge on building trust and securing buy-in from local communities. By championing sustainable, community-focused urban development, the government has the opportunity to redefine housing policy – not just in terms of numbers, but by addressing the real needs of the people it serves.

Find out more information at askpartners.co.uk

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