• Richard Gawthorpe

    Group Business Development Director

The UK’s housing crisis remains one of the most pressing policy challenges.

The new Labour government’s ambitious commitment to delivering 1.5 million homes reflects a shift in focus towards sustainable, long-term solutions. Beyond tackling the housing shortage, the aim is to revitalise communities, drive economic growth, and ensure developments align with wider infrastructure and service planning.

Every region has the potential to contribute to this agenda. However, delivering such a large-scale housing programme requires overcoming significant workforce, financial, and governance constraints. This article examines the historical context of housing delivery, the challenges faced, and the role of local government, regional collaboration, and strategic planning in achieving these goals.

Labour’s housing vision and strategic approach

Labour’s strategy for housing delivery is built on the principles of smart regeneration and regional strategic planning, as outlined in Design for Life: The Smart Regeneration Journey to 2030. This aligns with the Devolution White Paper, which highlights the importance of Regional Spatial Development Strategies in fostering a coordinated, cross-authority approach.

Labour’s emphasis on affordable and social housing, alongside infrastructure investment, signals a move towards sustainable, well-integrated development rather than simply increasing housing numbers.

Historical context

Post-war Britain saw a major government-led housing programme, with local councils playing a central role. However, by the 1980s, Right to Buy policies and a shift towards private-sector-led development significantly reduced the role of local authorities in direct housing provision. Over the past 50 years, private developers have consistently delivered around 150,000 homes per year—insufficient to meet growing demand.

While housing associations have expanded their role in affordable housing delivery, local councils are once again exploring new models, including public-public and public-private partnerships, to boost supply. Labour’s housing plan requires an accelerated and coordinated effort across all sectors, with greater local government engagement and regional structural reforms to unlock investment and streamline housing delivery.

Key challenges in delivering labour’s housing ambitions

  • 1. Workforce and capacity constraints

Many local authorities, particularly in smaller and rural areas, struggle to attract and retain skilled planning and (housing) development professionals. Without sufficient capacity, the ability to manage and deliver large-scale housing projects remains a significant hurdle.

  • 2. Financial constraints and investment challenges

The £22 billion fiscal shortfall highlighted in the Autumn Statement limits local authorities’ ability to acquire land, invest in infrastructure, and develop housing. Unlocking regional financial autonomy and developing new funding models are essential to addressing this challenge.

  • 3. Governance and regional autonomy

Empowering local authorities through regional strategic planning and fiscal devolution is critical. Granting greater control over funding, planning, and housing policy enables authorities to tailor solutions to local needs and scale up delivery efficiently.

The role of the planning and infrastructure bill

A key legislative enabler of this transformation is The Planning and Infrastructure Bill, currently being examined in detail at committee stage in the House of Commons. Designed to accelerate development and cut bureaucratic delays, the Bill is intended to unlock land for housing and infrastructure expansion.

  • Key provisions:

• Faster planning approvals to support the repurposing of underutilised land and assets

• Greater flexibility in land use, encouraging mixed-use developments that support economic sustainability

• Infrastructure-led growth, ensuring that transport, utilities, and public services underpin regeneration efforts.

For local government leaders, aligning urban asset management strategies with this new planning framework presents an opportunity to unlock investment, accelerate development, and build resilient communities. However, its success depends on effective local implementation and the ability to integrate planning reforms into wider service transformation.

Governance reform

Increasing local autonomy is vital for authorities to take control of planning, funding, and housing delivery. Regions such as Greater Manchester and the West Midlands have demonstrated the effectiveness of strategic regional planning, aligning housing strategies with economic growth priorities.

While the medium-long-term local government reform will take time to implement, short-term collaboration through shared service models or regional delivery hubs can provide interim solutions to resource shortages and efficiency challenges. By strengthening local capacity, councils can position themselves to take advantage of wider devolution measures as they emerge.

Financial solutions

Given the financial constraints on the public purse, alternative funding approaches are required to meet Labour’s housing targets. Potential solutions include:

• Public-Private Partnerships (PPPs): Partnering with private sector entities to access additional capital and share risk

• Fiscal reform: Allowing local authorities greater control over revenue streams, such as business rates, to create sustainable funding sources

• Regional collaboration: Pooling resources and funding opportunities to support strategic regional delivery

• Devolution-led investment: The Devolution White Paper proposes new Strategic Authorities and Regional Spatial Development Strategies to drive efficiencies, eliminate duplication, and streamline funding for housing development.

While government backing through financial incentives and regulatory changes is crucial, local authorities must also explore innovative financing mechanisms to unlock housing delivery.

Land use and infrastructure planning

Maximising brownfield and greyfield redevelopment are key to delivering housing while minimising environmental impact. Planning reforms that simplify zoning regulations and streamline approval processes will be essential in enabling faster development.

However, housing expansion must be underpinned by infrastructure investment, ensuring new developments are supported by transport, utilities, and public services. Without this, large-scale housing delivery risks failing to meet long-term sustainability goals.

The leadership imperative

The success of housing delivery is not only a matter of policy but of leadership. Effective leaders in local government must:

• Embrace reform: Align local planning strategies with national policy changes and funding opportunities

• Foster collaboration: Engage across government, private sector, and communities to drive shared outcomes

• Ensure operational excellence: Streamline governance, procurement, and service delivery to maximise efficiency and impact.

A strategic, coordinated approach to housing delivery

Labour’s housing vision is not just about increasing numbers but building sustainable, thriving communities. The success of this agenda depends on the alignment of planning reforms, financial solutions, infrastructure investment, and local government empowerment.

By enabling regional coordination, strategic land use planning, and infrastructure-led development, local authorities can help bridge the gap between ambition and delivery. The transition to greater devolution and unitary structures offers a unique opportunity to rethink public service provision, ensuring that housing is delivered efficiently, sustainably, and in a way that supports long-term economic and social prosperity.

Achieving this requires leadership, collaboration, and a commitment to holistic planning and investment—elements that will define the next generation of housing and urban development across the UK.