Chancellor promises no more major changes to building regulations this parliament except to improve building safety
The chancellor has pledged to take a more “proportionate” approach to housebuilding regulation, lowering biodiversity net gain requirements and ruling out major regulatory changes.
John Healey, in his Budget speech, today announced there will be no major changes to building regulations for the remainder of the parliament, except for improving building safety including implementing Grenfell Inquiry recommendations.
Healey said: “To get more homes built, I’m drawing the line on constant changes to building regulations”.
In Budget documents, the Treasury said: “The cost of building a home is at a record high, both due to underlying inflation of materials and labour costs, and increased burdens due to regulation and policy costs.”
Healey announced biodiversity net gain (BNG) requirements will be removed on brownfield sites up to 1.5ha.
The government will ”consider how amendments to regulations could support development by being more proportionate”. It added “this will give industry and councils greater confidence to invest, build, and deliver homes.”
Healey also announced the establishment of a Better Regulation Executive – a joint unit between Treasury and Number 10 – to implement the “government’s vision for a streamlined and proportionate regulatory system”. A chair will be appointed shortly.
The government will also bring forward a Regulation for Growth Bill which will relax rules to allow new technologies and approaches to be trialled for cross-sector regulation.
At-a-glance: Budget housing measures
- Reforms to ‘green book’ used by Treasury to assess business case for investing in projects - new guidance on developing place-based business cases which will mean housing projects can be considered together with other types of development
- Extra £1.5bn for the Social and Affordable Homes Programme
- New £4.7bn Your First Home equity loan scheme aimed at supporting 70,000 first-time buyers with up to 20% government equity loans
- Removal of BNG requirements on brownfield land up to 1.5 hectares
- Cheaper borrowing for councils for housing by extending the preferential Public Works Loan Board rate for a further year, to 2027-28, at 40 basis points below the PWLB normal rate
- Zero-rate of VAT for land sold to registered providers of social housing
- Flexible funding to invest in local authorities, boosted by £1.5bn of devolved loans for mayoral authorities - will back transport and regeneration projects
- Roadmap for fiscal devolution - 100% of business rates will be retained by end of the decade
- £100m local apprenticeship service funded from savings in welfare fraud and error
- White paper and legislation next year on reforming welfare system following Milburn report
- Further £430m for rough sleeping
- No changes to building regulations for the rest of parliament, except building safety
- The government will introduce a new First Time Buyer ISA from April 2029
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