The Chancellor of the Exchequer, Phillip Hammond, is rumoured to be using the Autumn Budget to tackle Britain’s housing crisis. Mr Hammond is reportedly seeking to implement measures to release Green Belt land for new homes.
Numerous independent research studies over the last few years have indicated that the protection of Green Belt land is responsible for increasing house prices and that the policy is too rigid in the face of new urban and environmental challenges, especially in relation to those sites that do not serve all five Green Belt functions.
According to research from the independent Institute of Economic Affairs there is, “overwhelming empirical evidence that the planning restrictions have a substantial impact on housing costs” and is a contributing factor for house prices rising dramatically over since the 1950s. The IEA has called for a review of the planning process and Green Belt policy in order to address the continuing housing crisis.
Furthermore, The Economist has previously criticised Green Belt policy proposing that unless planning laws are reformed and more Green Belt land is released, then housing space might need to be rationed out.
Mr Hammond’s rumoured approach would represent a step-change in the Government’s resolve to solve the housing crisis. With increasing pressure to build more houses, the release of Green Belt sites close to existing communities could play a significant role in meeting the country’s pressing housing need.