With a general election looming, Labour is promising to unleash a building boom to tackle Britain’s housing crisis. But can they overcome the decades-old planning system that’s holding back construction? The FT examined their prospects.

For years, Britain’s housing shortage has been a major headache. Home prices are skyrocketing, leaving many struggling to get on the property ladder. But Labour, led by Sir Keir Starmer, is promising to change things, with a plan to build 1.5 million new homes over the next five years.

A Greenbelt Battleground

One of Labour’s key strategies is to open up land within the greenbelt, a protected area around cities designed to prevent urban sprawl. This has been a politically sensitive issue, with many arguing it would destroy valuable countryside.

But Labour argues that building on “greybelt” land – areas within the greenbelt that are deemed low quality – could be a solution. They’ve also suggested building on “old car parks and petrol stations” as well as “new towns” outside London.

A History of Housing Headaches

The UK’s housing situation has been a long-standing problem. Since the 1960s, housebuilding has been stuck in a rut, with attempts by the Conservative government to accelerate building often met with resistance.

The current planning system has been blamed for this lack of progress. Experts say it’s complex, unpredictable and often blocked by local councils and environmental concerns.

Can Labour Deliver?

While some industry experts are cautiously optimistic about Labour’s plans, others are skeptical.

Here’s what they say:

• Industry insiders: While broadly supportive, they warn that wholesale reform could be difficult and time-consuming. They are calling for a more targeted approach, focusing on clearing bottlenecks in the current system.
• Planning officials: They say Labour will need to act swiftly and boldly to tackle the housing deficit.
• Housing association CEOs: They say the focus should be on helping local councils improve their planning departments and speed up stalled projects.
• Economists: They say that a construction boom would provide a much-needed boost to the economy, improving productivity and generating jobs.

The Greenbelt Debate

The greenbelt issue is likely to be a major battleground. While some argue that development is necessary, others warn about the impact on the environment and local communities.

Here’s a snapshot of the key arguments:

• For development: Opponents of the greenbelt argue that it’s outdated and prevents much-needed housing development, contributing to the housing crisis. They point to the fact that the greenbelt is not a pristine wilderness, but often includes areas of low-quality land.
• Against development: Supporters of the greenbelt argue that it’s crucial for protecting the environment, preventing urban sprawl and preserving rural character. They argue that development should focus on brownfield sites (previously developed land) before encroaching on the greenbelt.

The Key Questions

With the election on the horizon, here are the questions Labour needs to answer:

• How will they overcome the political hurdles and resistance to building on greenbelt land?
• Will they be able to convince local councils to embrace more ambitious development plans?
• How will they ensure that the new housing is affordable and accessible for those most in need?

The next government will need to tackle the UK’s housing crisis head-on. It will be a challenging task, but with the right policies and a clear vision, Labour could bring much-needed change to the UK housing market.