Councils are to get new powers to keep housebuilders on track to ensure they play their part to deliver 1.5 million homes.

The government has announced changes to make sure developers deliver on their commitments and do not leave sites half-finished for years. 

Housebuilders will have to commit to delivery timeframes before they get planning permission.

Under new rules, housebuilders will also have to submit annual reports showing their progress to councils to keep them on track.

Developers who consistently fail to build out consented sites and those who secure planning permissions simply to trade land speculatively could also face a Delayed Homes Penalty worth thousands per unbuilt home, paid directly to local planning authorities.

Those deliberately sitting on vital land, without building the homes promised, could see their sites acquired by councils where there is a case in the public interest and stripped of future planning permissions.

Deputy prime minister and housing secretary, Angela Rayner, said: “This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. In the name of delivering security for working people, we are backing the builders not the blockers. Now it’s time for developers to roll up their sleeves and play their part.

“We’re going even further to get the homes we need. No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder. Through our Plan for Change, we will deliver 1.5 million homes, fix the housing crisis and make the dream of home ownership a reality for working people.”  

These reforms play a key part of the government’s Plan for Change to build 1.5 million homes this Parliament.

The government is publishing a Planning Reform Working Paper entitled Speeding Up Build Out. This is alongside publishing a technical consultation on requiring transparency and accountability measures for build out rates on housing sites. 

The technical consultation sets out proposals to require developers of 50 or more homes utilising powers introduced in the Levelling-up and Regeneration Act 2023 to provide a build out statement with their planning application, a commencement notice when they start their development and  an annual progress report tracking build out progress.