Housebuilders will be forced to stick to stricter timelines on pain of penalties under major new government reforms aimed at accelerating the delivery of 1.5 million homes across England.
Deputy Prime Minister and Housing Secretary Angela Rayner unveiled a suite of measures over the Spring Bank Holiday to stop developers from sitting on planning permissions and delaying much-needed homes.
Speaking from the Ministry of Housing, she said: “We are backing the builders, not the blockers.”
‘Delayed homes penalty’
Under the new proposals, developers will be required to agree build-out schedules before receiving planning permission. They must also submit annual progress reports to local authorities. Those who fall behind without good reason could face a new “Delayed Homes Penalty” – a fine worth thousands per unbuilt home – or even be barred from future planning permissions.
Rayner said the reforms would ensure sites with planning approval “no longer gather dust for decades while a generation struggles to get on the housing ladder.”
The crackdown includes a new power for councils to acquire land where developers have failed to deliver, alongside measures to make mixed-tenure housing the default on large sites, in a move to boost affordability and speed.
The Local Government Association welcomed the changes, calling them “crucial.”
The era of land-banking is over
Housing spokesperson Cllr Adam Hug said the new penalty powers were long overdue: “Too often, councils are frustrated when developers do not build the homes they have approved.”
These changes form part of the government’s broader Plan for Change, including a reformed National Planning Policy Framework and the upcoming Planning and Infrastructure Bill. Together, they aim to drive UK housebuilding to record levels, delivering £6.8 billion to the economy by 2030 and marking the biggest boost in social and affordable housing in a generation.
The message from Westminster is clear: the era of land banking is over. It’s time to get Britain building.
