green belt: labour's 'golden rules' for growth

As the autumn budget approaches on October 30th, attention turns to the new Labour government’s proposals, with green belt policies taking centre stage in the housebuilding industry. Designed to prevent urban sprawl and preserve open spaces, the government is often criticised for releasing land, caught between the pressures of NIMBYism and soaring land values, fuelling debate among landowners.

The labour government is pushing a ‘brownfield first’ approach but admits releasing green belt land will be necessary to meet their goal of building 1.5 million homes, and in our view, releasing land for up to an extra 100,000 homes a year could be well needed. Local authorities may have to rethink green belt boundaries and consider what they call “low-quality grey belt land” if other housing or commercial needs can’t be met. It’s not an open invitation for developers but more of a ‘last resort’ to ensure communities get the housing and facilities they need.

To ensure developments benefit both communities and nature, the government are proposing new ‘golden rules’ to control how green belt is released, its use, and who benefits. Developers must follow key principles to deliver more than just expensive homes, including:

• affordable housing – at least 50% of new homes must be affordable, with some set aside for social rent, depending on viability.
• infrastructure improvements – think schools, GP surgeries, transport links, care homes, nursery places, etc.
• new green spaces – there must be new or improved green spaces accessible to everyone.

To keep costs in check, the government proposes benchmark prices for released green belt land, reflecting land value while allowing some wiggle room for viable developments. This prevents developers from overpaying and later cutting affordable housing or infrastructure commitments. If landowners resist selling at these prices, the government may empower local authorities and public bodies to take an active role in land assembly, potentially purchasing land in the public interest if high payouts stall progress.

The plan relies on selling higher-priced homes to fund affordable housing and infrastructure which is effective in high-value areas, but less so in lower-value regions, where development may be less viable. Releasing green belt land in these areas could require direct investment or revisiting the ‘golden rules.’

Ultimately, the government’s green belt strategy balances development with preservation. While the ‘golden rules’ aim to ensure equitable benefits, their enforcement will depend on local factors and funding. Building homes and infrastructure is one challenge, ensuring those benefits reach everyone is another. The government’s approach is detailed, but the real challenge lies in delivering on these policies.

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