The Government’s Changes to National Policy Planning Framework: The Ambitious Journey to 1.5 Million Homes
For 15 years, we have been a small ‘step’ in the housing supply chain but an integral part, witnessing reform, crisis and everything in between. Throughout this time, challenges facing the industry have been relentless, impacting the supply chain and the development of more social and affordable housing. Today, homeownership feels like a distant dream for many, a stark reminder of the ongoing housing crisis that has become one of the most significant barriers to the nation’s economic and social growth.
To address the housing crisis, the Government has set an ambitious target: build 1.5 million homes in the next five years. But is this goal truly attainable? And how can the supply chain adapt to support this vision? In this blog, Think Timber Managing Director Gav Brown discusses whether the Government’s target is truly attainable and how the supply chain can support bringing it to fruition.
“Growth across the UK construction industry has been frustratingly slow in recent months. According to S&P Global’s UK Construction Purchasing Managers’ Index the sector is at its weakest level of growth since June 2024. Plagued by challenging economic conditions such as inflation and an ongoing lack of skilled workforce, a boom in housebuilding and improvements to living standards seem way off.
“However, the Government’s commitment to build 300,000 homes per year does offer a glimmer of hope to all involved. Directly addressing the undersupply of housing, done right it could create jobs, satisfy demand and inject some growth back into the industry.
“In December 2024, the UK government proposed significant changes to the National Planning Policy Framework (NPPF). These reforms aim to tackle the housing crisis head on by balancing development needs and prioritising communities, all while offering a more resilient planning system for the future. In the NPPF, the Government expanded the capacity of land use with the introduction of the ‘Grey Belt’, prioritised affordable housing by incorporating required contingents for new development and introduced stronger requirements to support sustainability within the industry. And to address economic growth, the framework promotes the diversification of more homes in town centres, which will also protect agricultural land when allocating land for new development.
“Nevertheless, even with these changes implemented, the success of this initiative hinges on whether the construction industry has the capacity to deliver at such scale. As a timber supplier to the housebuilding industry, we act as a catalyst for upholding a resilient supply chain and we understand the availability of raw materials is crucial to construction. We work to take the hassle out of international supply and uphold strategic relationships that cover international boundaries. From handling the logistics to simplifying the complexities of international trade, we open up access to the best materials, creating a stronger and more efficient supply chain. When supply chain issues arise, they ripple through every level. And so, for this reason, we need to ensure the supply chain remains resilient in the face of growing demand.
“Another prominent obstacle is the limited availability of skilled labour. Planning reform is reliant on a skilled workforce and as we enter 2025 with a chronic shortage, can the demand be met? It’s not just the lack of skilled labour found on-site, but throughout the entire process, such as the workforce behind supply chain contributors like ourselves. The government has recognised the shortage of construction workers and said steps are being taken to “rectify” the industry’s hindrance. To prove their commitment to the cause, they announced £140 million of funding to create 5,000 more construction apprenticeship places per year and established a ‘Homebuilding Skills Hub’ for fast-track training.
“While these steps are commendable, they are far from a quick fix. Skilled labour shortages will likely persist for years, and without immediate action, the ambitious housing target could remain out of reach. Meeting the 1.5 million homes target will require unprecedented collaboration between the Government, housing developers and supply chain contributors. The agility and resilience of the supply chain will prove to be the cornerstone to its success and will require a steadfast commitment to innovation and cohesive partnerships. By fostering trust, enhancing transparency, and streamlining processes, the industry can build the confidence and efficiency needed to turn this ambitious vision into reality.
“Labour’s housing plan is bold and by building more homes, the hope is that house prices will reduce, making homeownership more accessible and realistic for many – especially younger generations where the average first-time buyer is now 33.5 years old. However, achieving this vision will require more than just pledges and announcements; immediate action to address skill shortages and create an agile supply chain are essential.”
If you have any questions or need help with your timber supplies, email us: sales@thinktimber.co.uk
