House of Lords Slams Government’s ‘Rushed and Incoherent’ Grey-Belt Policies
The House of Lords Built Environment Committee has sharply criticised the UK government’s grey-belt policies, warning that they are unlikely to have a significant impact on housing delivery and risk creating further uncertainty in planning. In its latest inquiry, the committee concluded that the policies—introduced in the revised National Planning Policy Framework (NPPF) in July 2024—were “rushed and not properly thought through”, casting doubt over their effectiveness in addressing the UK’s housing shortage .
What Are Grey-Belt Policies?
Grey-belt policies were introduced as part of the government’s efforts to unlock underutilised land within the green belt for housing development. Under the updated NPPF, local authorities are required to review their green-belt boundaries and identify grey-belt land—sites within the green belt that could potentially be developed if housing needs cannot be met elsewhere.
The policy was intended to strike a balance between preserving green spaces and boosting housing supply, particularly in high-demand areas. However, the House of Lords inquiry has raised serious concerns about whether the policy is practical or enforceable.
Key Findings of the House of Lords Inquiry
Uncertainty Over Housing Delivery
One of the most striking conclusions of the inquiry is that the actual impact of grey-belt policies on housing supply remains unclear. Estimates on the number of homes that could be delivered vary wildly:
This massive disparity in projections highlights the lack of clear government planning and suggests that local authorities and developers do not have a solid framework for implementing grey-belt policies .
Lack of Resources for Local Authorities
The committee also found that local planning departments lack the resources and expertise to effectively implement grey-belt policies. Without proper funding and staffing, local authorities may struggle to assess land suitability, process applications efficiently, and resist speculative development in sensitive areas.
A Rushed and Ineffective Approach
Lord Daniel Moylan, who chaired the committee until 30 January 2025, was blunt in his assessment:
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“The committee does not believe [grey-belt policy] is likely to have any significant or lasting impact on planning decision-making or helping the government achieve its target of building 1.5m new homes by the end of this parliament.”
His warning underscores a broader issue with the government’s piecemeal approach to planning reform—policies are being introduced without clear evidence of their effectiveness and without the necessary support structures in place .
A Potential Boost for SME Developers—But With Barriers
One positive takeaway from the committee’s findings is that grey-belt land could support SME developers. Unlike large-scale development projects, which typically require major land parcels, small grey-belt sites may be more financially viable for smaller housebuilders.
However, despite this potential, SME developers still face financial hurdles. The affordable housing requirement on grey-belt developments—while less rigid than the originally proposed 50% quota—remains a major cost burden, making many projects financially unfeasible .
The Bigger Picture: Infrastructure Challenges
Even if new homes are successfully built on grey-belt land, long-term sustainability remains a key issue. The committee found that access to transport, schools, healthcare, and utilities will be critical in determining whether grey-belt developments are viable.
The report emphasised that without proper infrastructure planning, grey-belt housing projects could fail to deliver sustainable communities, instead contributing to urban sprawl and overstretched public services.
The Built Environment Committee has now called on the government to respond to its findings within 28 days. While the committee acknowledged some positive aspects of the grey-belt policy—such as a more precise definition that reduces legal ambiguity—it remains skeptical that these reforms will meaningfully contribute to housing targets.
The government has yet to outline how it intends to track progress and assess the effectiveness of its grey-belt policies. Without a clear monitoring framework, the risk remains that the policy could be little more than a symbolic gesture, rather than a genuine driver of housing development .
A Policy in Need of Reform
The House of Lords inquiry confirms what many in the property sector feared—the government’s grey-belt strategy lacks clarity, execution, and measurable impact. While the idea of unlocking green-belt land for housing has merit, the current policy framework is not robust enough to deliver meaningful results.
For developers, investors, and local authorities, the uncertainty surrounding grey-belt planning rules creates more questions than answers. Without proper funding, strategic oversight, and infrastructure planning, grey-belt policies could end up failing to deliver on their promise—leaving the UK’s housing crisis unresolved.
What are your thoughts on the grey-belt policy? Is it a missed opportunity, or could it still be refined into an effective housing solution?