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UK Housing Policy and the framework for delivery

TARGETING 1.5 MILLION NEW HOMES

Since July 2024, the UK Government has made solving the housing crisis a central priority. It has set an ambitious target to deliver 1.5 million new homes in England over the course of the current Parliament, equating to more than 300,000 homes per year. This target is significantly higher than current housing delivery levels, which stood at 221,000 net additional homes in the 12 months to March 2024 (compared to 234,290 in the previous year).

To meet this ambition, the Government has introduced a series of policy and funding initiatives designed to unlock land, streamline planning, and increase the delivery of both market and affordable housing. Key actions include:

  • Restoration of mandatory housing targets and a requirement for local plans spanning at least six years
  • Reforms to the National Planning Policy Framework (NPPF), with updates published in December 2024 and further consultations expected in 2025
  • Introduction of the Planning and Infrastructure Bill (in March 2025), aimed at simplifying and accelerating the planning process and modernising local planning authorities
  • A commitment to deliver a new generation of “new towns”, supported by public land release
  • A ‘default yes’ approach to brownfield development and a ‘common sense’ strategy for green belt, prioritising grey belt land
  • The anticipated English Devolution Bill (expected Summer 2025), which will devolve greater control over planning, growth, and transport to Combined Authorities
  • A 10-year social housing rent settlement from 2026 at Consumer Price Index + 1%
  • The announcement of the National Housing Bank, a government-backed housing bank that will unlock billions of private sector investment, helping to create jobs and deliver over 500,000 new homes
  • A consultation on the implementation of social rent convergence

The Government has also committed to increased funding for the Affordable Homes Programme (AHP). The current 2021–2026 programme, supported by £11.5 billion in grant funding, is now nearing full allocation. In response, the Government has already confirmed a £2 billion pound top up for immediate use and a further confirmed £39 billion for a successor to the Affordable Homes Programme (AHP) over 10 years from 2026-27 to 2035-36 and the publication of an upcoming long-term Housing Strategy.

We are fully aligned and committed to the Government’s housing policy. As a Strategic Partner of Homes England, we see ourselves as a key part of delivering on these ambitions – offering high-quality homes at pace and scale, while creating thriving, sustainable places and communities.

The housing policy agenda is led by the Ministry of Housing, Communities and Local Government (MHCLG) and delivered in partnership with national and regional agencies, including:

  • Homes England
  • Combined Authorities/Strategic Authorities/Mayoral Authorities
  • Local Authorities
  • Registered Providers (RPs) and Local Authorities (LAs)

We maintain strong, proactive relationships with all of these organisations. We are well-positioned to benefit from future funding rounds—both via Homes England and through devolved sources. We will continue to utilise this funding in partnership to support the increase in affordable housing provision.

We have a long-standing and trusted relationship with Homes England, built on a shared commitment to delivering high-quality, sustainable communities. We are currently active on over 30 sites involving public sector land, and as the only mixed tenure homebuilder with Strategic Partner status, we have direct access to long-term grant funding. This enables us to work collaboratively with local authorities and registered providers to meet affordable housing needs efficiently, confidently, and at scale.

Traditional Registered Providers (also known as Housing Associations) are not for profit organisations that provide social and affordable housing. Over £1m households are on waiting lists for social and affordable rented homes, and demand for shared ownership is at record levels since the withdrawal of Help to Buy. Vistry hold a unique market position as a partner of choice for registered providers, and the Group’s affordable grant funding is key to unlocking affordable housing solutions.

We are working in partnership with over 100 registered providers across the UK.

Local Authorities (LAs) manage housing and infrastructure within their defined areas across the UK. They have a statutory duty to prevent homelessness and own about 1.6 million affordable homes, often working with Vistry on projects.

We are working with 30 local authorities and are currently discussing local plans with combined authorities on their future housing strategies.

More information about our partners can be accessed here.

Local Authorities perform an important function in setting out through the Local Plan where future development will occur and developing local policies. Vistry works closely with planning departments to promote new development opportunities through Local Plans as well as through the Development Management process.

Close working between the planning department and Vistry is important to ensure that we deliver the best scheme possible which meets the needs of the local community as well as future occupiers of the new community.

Vistry works with institutional investors and property managers to bring forward Private Rented homes (PRS) on new communities across the country. PRS homes provide a different type of tenure homes for local communities and different options for families if purchasing a home or renting from a Housing Association is not appropriate. PRS home providers deliver a long-term commitment to an area as well as well managed and maintained properties.

“By forming strategic partnerships with a wide range of public and private organisations, we are creating the conditions needed for institutional investment to catalyse affordable housing supply and in future give local authorities more of the tools they need to plan and act strategically, shaping their communities and building new homes.”

Alison Crofton

Chief Property Officer, Homes England