The release of the English Devolution White Paper, titled Power and Partnership: Foundations for Growth, marks a significant evolution in the UK’s governance and regional development approach. This comprehensive framework outlines new powers for Strategic Authorities and Mayors across England, reshaping the dynamics of housing, planning, and sustainable development. This marks both an opportunity and a challenge for the new homes industry, as decentralised authority introduces new complexities and opens pathways for innovation and growth.
Devolution and Housing in the UK
Devolution in the UK has aimed to decentralise decision-making, empowering regional and local leaders to address specific community needs. This approach reflects the recognition that housing and planning challenges are best understood and addressed locally, rather than through centralised, one-size-fits-all policies.
The English Devolution White Paper explicitly acknowledges the critical role of mayors and Strategic Authorities in delivering the government’s commitment to build 1.5 million new homes during this Parliament. By granting additional powers and funding mechanisms, the framework seeks to accelerate the delivery of housing projects while ensuring they align with regional economic and environmental goals.
Key provisions impacting the New Homes Industry
Spatial development strategies
The requirement for all areas—whether governed by a Strategic Authority or not—to produce a Spatial Development Strategy (SDS) represents a paradigm shift in planning. The SDS will coordinate long-term land use planning across regions, offering a unified vision for housing, transport, and infrastructure.
For developers, this change means a clearer pipeline of projects, reduced uncertainty, and the potential for streamlined approval processes. However, achieving consensus among constituent members will be critical, as the strategy must secure majority support.
Development management powers
Mayors will gain significant powers to call in planning applications of strategic importance. These powers, akin to those already exercised by the Mayor of London, enable direct intervention in cases where projects align with regional priorities, such as housing delivery, regeneration, or infrastructure enhancement.
While this could fast-track large-scale developments, it also raises questions about local autonomy and the balance of power between Mayors and local councils. Developers will need to navigate this dual-layered decision-making landscape carefully.
Mayoral levies for infrastructure
The introduction of a Mayoral Community Infrastructure Levy (CIL) mirrors the approach taken in London to fund the Elizabeth Line. This levy allows Mayors to ensure new developments contribute to necessary infrastructure—schools, roads, and public transport—thereby supporting sustainable growth.
For the new homes industry, this levy introduces an additional cost but also provides certainty about the infrastructure supporting new communities. Developers will need to factor these costs into project planning and pricing.
Regionalisation of Homes England
The White Paper proposes a more regionalised model for Homes England, aligning its operations with the economic plans of Mayoral Strategic Authorities. This localisation will enhance accountability and responsiveness, ensuring that housing projects align with regional priorities.
This reform is particularly significant for the new homes industry, as it may lead to faster decision-making and greater access to funding for regeneration and housing delivery projects. However, the transition to a regionalised model could involve initial teething issues as systems and processes are restructured.
Strategic implications for the new homes industry
The English Devolution White Paper fundamentally reshapes the regulatory and operational environment for the new homes industry. Here are some of the strategic implications:
Increased collaboration with regional authorities
Developers must engage proactively with Mayors and Strategic Authorities to align projects with regional priorities. Building relationships and understanding the specifics of Spatial Development Strategies will be crucial.
Navigating mayoral levies and funding mechanisms
With Mayors gaining control over housing grants and infrastructure levies, developers will need to incorporate these financial factors into feasibility studies and project designs. Transparent cost assessments and early-stage negotiations will be key.
Adaptation to climate and sustainability goals
The enhanced role of Strategic Authorities in climate and energy planning aligns housing delivery with the UK’s Net Zero ambitions. Developers must integrate sustainability into designs, including energy-efficient construction and retrofitting existing housing stock.
Opportunity for regional innovation
Devolution encourages localised innovation in housing delivery, including modular construction, community-led housing initiatives, and integration with local energy systems. Developers who embrace these opportunities may gain a competitive edge.
Conclusion: A transformative moment for housing and planning
The English Devolution White Paper represents a transformative moment for housing and planning in the UK. By empowering Mayors and Strategic Authorities with new powers and funding mechanisms, the government seeks to address the nation’s housing crisis while fostering regional economic growth.
For the new homes industry, this devolution agenda introduces both opportunities and challenges. Those who adapt quickly to the new regulatory landscape, build strong partnerships with regional authorities, and innovate in sustainable housing delivery will thrive in this era of decentralisation. However, success will require navigating a complex and evolving policy environment, underscoring the importance of agility, collaboration, and foresight in shaping the homes of the future.
