It has been a busy time for the government. Hot on the heels of the UK REiiF 2025, the government announced three important consultations that could significantly affect planning strategies, land use and development timelines. The proposals concern the Levelling Up and Regeneration Act 2024 (LURA) and the delivery of biodiversity net gain (BNG).
We set out below a summary of the proposals and the key considerations for developers.
Levelling Up and Regeneration Act 2024 consultation – measures to accelerate build out
The first consultation introduces powers to make developers accountable for delivery and completion rates.
The proposals include compulsory build-out statements for applications involving 50+ homes and annual reporting requirements for development progress. In addition, to fast-track land assembly, councils would be given new powers to be able to refuse new permissions or serve completion notices where build-out is slow, and to confirm compulsory purchase orders (CPOs) conditionally. This means that CPOs can only be implemented once certain specified conditions have been met.
These proposals mean developers must prepare detailed delivery plans at the planning stage, but also be mindful that delays to build out could affect future permissions or trigger enforcement and CPO processes to accelerate on strategic sites.
BNG for nationally significant infrastructure projects
In the second consultation, the government is proposing to make BNG mandatory for nationally significant infrastructure projects (NSIPs) from May 2026. This will align infrastructure planning with the 10% BNG requirement already in place for town and country planning applications.
The key proposals include mandatory BNG for applications for development consent orders (DCOs), tailored guidance and metrics for large infrastructure schemes and clarification on habitat banking and off-site gain for NSIPs.
If these proposals are implemented then BNG will need to be factored in by NSIP promoters at an early stage, but also additional land may be required in order to meet gain targets, which could have an impact on a site’s profitability and deliverability if further costs need to be incurred. DCO documentation and environmental impact assessments will also need to reflect biodiversity commitments. It's therefore important for developers to start thinking about and gearing up for these changes as soon as possible.
BNG for minor, medium and brownfield development
The third and final consultation seeks to improve BNG implementation for smaller-scale and brownfield sites.
The government propose to do this by expanding or refining exemptions for certain developments, such as:
Whilst developers may benefit from new exemptions or a simplified BNG assessment route, and off-site unit access could reduce land take and improve deliverability, the quid pro quo is that applications already in progress may require review if the changes are adopted.
Even if only some of these proposals are introduced, it's important for developers to consider reviewing current and projects already in the pipeline to assess the impact of the proposed BNG or build-out changes.
It would also be worth getting a head start on preparing for compliance with new metric tools, off site options and reporting on delivery. Now is also the time to have their say in response to the consultations, so developers should also consider submitting responses to help protect their commercial interests and shape policy.
There has already been backlash from developers who refute the accusation that they are purposefully blocking progress on sites. Where the name of the game is making money, what benefit is there in delaying building? Until houses are built and sold, developers are out of pocket for the huge upfront sums they have already put in to site acquisition, the costly and lengthy planning process and the build itself. Some housebuilders feel that greater input from the government, including some form of stimulus to help buyers onto the ladder, is required in order to ease the current log jam, and to give them the necessary tools to deliver the numbers of houses needed to meet the challenging target that has been set.
All is not lost for SME developers though as is has been confirmed that Homes England will release more of its land to them exclusively, BNG requirements will be eased and an exemption from the Building Safety Levy applied for sites between 10 and 49 homes. The government sees smaller housebuilders to be the ‘bedrock of (their) Plan to Change to build 1.5 million homes and fix the housing crisis.'
But whilst these new measures will be a much appreciated leg up for smaller housebuilders to progress their sites to completion, is the government risking alienating the larger housebuilders with these proposed new measures? Not least as the government’s other consultations suggest an increase in the already huge logistical and administrative burden of delivering the much needed housing stock.
If the target of 1.5 million homes is to be met, then the government needs to be mindful of keeping developers on side, as their contribution towards housing growth and building more homes to get ‘working people on the housing ladder’ should not go unrecognised. Input from developers is therefore extremely important so that the government can get a true picture as to whether these proposed changes will be a benefit or hindrance to developers’ deliverability on their ambitious housing target.
For further information, please contact our real estate and planning teams.
