Labour’s plan to fix the housing crisis: tax developers to fund social housing and build new towns

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HS2 facing further spiralling costs with redesign needed on London to Birmingham legThe package of measures to fix Britain’s housing crisis will also include planning reforms to hand greater powers to local authorities to compulsorily purchase land and building on specific areas of green belt land

Any attempt to build on green belt land is likely to be met with opposition. When the Conservatives proposed 14 ‘garden cities and villages’ in 2017 concerns were raised over the number of affordable homes and the impact on local infrastructure. According to housing charity, Shelter 1.2 million households in England are n waiting lists for a social home, a rise of 5% in the last two years.

High profile examples where they have been used for urban regeneration include London’s Docklands and the Mersey docks in Liverpool in the 1980s. But they were also used after the war. Levies on developers selling the private housing at market value would then fund the development project, under Labour’s plans.

The party said it wanted to bring forward “a new generation of locally led development corporations” with “construction of social and genuinely affordable homes at the heart of our plans”. In an interview with the Guardian Ms Rayner said a leasehold reform bill would be in the first Labour King’s speech enabling leaseholders to buy the freehold.

 

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