UK launches consultation to overhaul National Planning Policy

The UK Government has launched a major consultation on wide-ranging reforms to the National Planning Policy Framework to accelerate delivery of 1.5 million homes, supporting infrastructure, clean energy, and data centers.

• Planning reforms & housing targets: Proposals include a default ‘yes’ near rail stations, higher-density development (including building upwards and more flats), streamlined energy efficiency and Biodiversity Net Gain rules, a new medium site category (10–49 homes) with proportionate costs (including possible Building Safety Levy exemption), and preferential treatment for developments that strengthen local economies and services; the new rail/densification policies are expected to unlock up to 1.8 million homes, contribute to the goal of 1.5 million homes this Parliament, and override conflicting local policies from day one.
• Investments, capacity & infrastructure/data centers: Measures include £5 million to expand the Small Sites Aggregator in Bristol, Sheffield and Lewisham to transform up to 60 brownfield sites into social housing, £8 million for capacity in local planning authorities with many major schemes pending (including London boroughs), an extra £48 million for planning capacity (including £28.8 million for the Planning Capacity & Capability Programme and ~350 additional planners), reforms to BNG with area-based exemptions for small sites (≤0.2 ha) and proposed exemptions for residential brownfield (testing up to 2.5 ha) plus offsite BNG simplification (implementation timeline due in the new year; NSIP BNG goes live May 2026), acceleration of data centers co-located near energy sites via a single planning route to support AI Growth Zones, and confirmation that the Planning and Infrastructure Bill will become law before Christmas alongside a £39 billion Social and Affordable Homes Programme and future reforms such as a National Scheme of Delegation and pattern-book standard house designs from 2026 onward.