Westminster, 28 May 2025 — The Government is set to unveil sweeping planning reforms aimed at helping smaller developers build homes more quickly and affordably, as part of Labour’s wider ambition to deliver 1.5 million homes by the end of the decade.
In a move set to streamline the planning process, decisions on small-scale developments of up to nine homes will be delegated from elected councillors to trained planning officers. The new rules, to be laid out in the forthcoming Planning and Infrastructure Bill, are designed to eliminate bureaucratic delays that have long hampered progress for small and medium-sized enterprises (SMEs) in the housing sector.
Deputy Prime Minister and Housing Secretary Angela Rayner hailed the measures as a long-overdue levelling of the playing field. “Smaller housebuilders must be the bedrock of our Plan for Change,” she said. “The current system has failed them for decades. These reforms will simplify planning, cut unnecessary costs and finally give smaller developers a fair chance to contribute meaningfully to the housing effort.”
Under the proposals, minor and technical applications will now fall into a new Tier A category, meaning they will be handled directly by planning officers. More complex and sensitive proposals, labelled Tier B, will continue to be considered by councillor-led committees when necessary.
To complement the procedural changes, the Government announced a £100 million accelerator loan scheme, aimed at supporting small developers to bring their plans to market faster. Additionally, a new National Housing Delivery Fund, to be detailed in the next spending review, will provide long-term financial backing including revolving credit options for SMEs.
Homes England, the agency responsible for affordable housing delivery, will also make more land available exclusively to smaller builders in an effort to diversify the housing market, which has long been dominated by major developers.
However, the reforms have sparked concern among environmental advocates. The proposals include simplified biodiversity net gain requirements for developments under 50 homes, and full exemptions from the building safety levy for medium-sized schemes of 10 to 49 units. The Wildlife and Countryside Link, a coalition of leading conservation groups, has warned that such changes could undermine the Government’s commitments to nature-positive planning.
Richard Benwell, chief executive of the group, said: “Exempting small sites would mean nearly three-quarters of developments could go ahead without any requirement to offset nature loss. This would render the biodiversity net gain system ineffective and deprive communities of the green spaces that make neighbourhoods more liveable.”
He added, “Instead of rolling back standards, the Government should ensure all developers contribute to environmental recovery. Biodiversity net gain must be the rule—not the exception.”
The Government has responded by pledging an additional £10 million to local councils to hire environmental specialists who can expedite ecological assessments, as well as launching a £1.2 million PropTech Innovation Fund to promote new technology solutions for small site planning.
A pilot scheme in Bristol, Sheffield and Lewisham is also underway to unlock land parcels previously considered unsuitable for development, showcasing Labour’s commitment to utilising every opportunity to increase housing stock.
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Predictably, the Conservative Party has criticised the plans. Kevin Hollinrake, the shadow local government secretary, accused Labour of undermining local democracy and failing to offer meaningful solutions for first-time buyers.
“Labour’s plan strips councillors of their voice, sacrifices the green belt, and fails to support working families trying to get on the property ladder,” he said. “Despite promising big, even the OBR doesn’t believe Labour will meet its housing targets.”
The planning shake-up comes as the Government faces mounting pressure to address the chronic housing shortage, boost economic productivity, and make home ownership more accessible. As consultations on planning thresholds, biodiversity, and committee reforms commence, the balance between rapid housing delivery and environmental stewardship looks set to remain at the centre of a heated national debate.
