Under the new rules, housebuilders will have to submit annual reports showing their progress to councils to keep them on track.
Councils will also get new powers to penalise developers that repeatedly fail to build out consented sites or use planning permissions to trade land speculatively.
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The government said that the proposed Delayed Homes Penalty, which would be worth “thousands per unbuilt home”, would be a last resort measure for local authorities where a developer has agreed a build-out schedule in their planning permission, but falls materially (10% or more) behind it without a good reason.
'Time for developers to roll up their sleeves'
The plans are included in the government's planning reform working paper, Speeding Up Build Out, published today.
The paper comes alongside a technical consultation on transparency and accountability measures for build-out rates on housing sites.
It sets out proposals to require developers of 50 or more homes using powers introduced in the Levelling-up and Regeneration Act 2023 to provide a build-out statement with their planning application, a commencement notice when they start their development, and an annual progress report tracking build-out progress.
This will require primary legislation and only apply to future planning permissions.
Deputy prime minister and housing secretary Angela Rayner said: “This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. In the name of delivering security for working people, we are backing the builders not the blockers. Now it’s time for developers to roll up their sleeves and play their part.
“We’re going even further to get the homes we need. No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder. Through our Plan for Change, we will deliver 1.5 million homes, fix the housing crisis and make the dream of home ownership a reality for working people.”
