UK Government Considers Easing Environmental Rules for Small Housebuilders

The UK government is reviewing environmental regulations that require developers to enhance wildlife habitats, aiming to facilitate housing development on smaller sites. The proposed changes focus on the Biodiversity Net Gain (BNG) requirements, which mandate builders to compensate for any ecological loss resulting from housing projects. Ministers are exploring ways to reduce costs for smaller housebuilders while still delivering necessary habitats for wildlife.

As part of a broader housing reform package, Housing Secretary and Deputy Prime Minister Angela Rayner intends to simplify the planning system to expedite construction on minor sites. Proposed measures include easing BNG obligations for developments of up to nine homes and granting trained planning officers, rather than local councillors, the authority to approve such projects. Additionally, there is consideration to exempt sites with 10 to 49 homes from a tax intended to fund the removal of unsafe cladding.

The government highlights that smaller firms have seen their market share diminish since the 1980s, when they were responsible for delivering 40% of the country’s homes. Ministers argue that these reforms are essential to “level the playing field” and enable smaller housebuilders to contribute significantly to meeting the government’s target of constructing 1.5 million new homes in England by 2030.

However, the proposed changes have faced criticism. The Conservative Party contends that the reforms could undermine local democracy by reducing councillors’ involvement in planning decisions and potentially lead to overdevelopment in green belt areas. Despite these concerns, the government maintains that the reforms are necessary to address the housing shortage and support the growth of small housebuilding businesses.