UK ministers scrap plan to ease affordable housing rules after rural backlash

The UK government has dropped a proposal to relax affordable housing requirements for private developers after strong pushback from housing sector experts, who warned the change could sharply reduce the number of affordable homes built in rural England.

On Monday, the government confirmed it would not proceed with a plan that would have let developers building between 10 and 49 houses make cash payments instead of constructing affordable homes on site. The proposal had been included in a 150-page planning reform document, but was withdrawn after a public consultation drew an overwhelmingly negative response. It marks one of the most significant reversals in housing policy since Andy Burnham became prime minister.

Kate Henderson, chief executive of the National Housing Federation (NHF), welcomed the decision, saying it preserves one of the most important routes for delivering social housing in rural communities.

Of the 910 people and organisations that responded to the consultation, 41% strongly opposed the measure while only 18% strongly supported it, with the government noting significant opposition across all stakeholder groups.

An NHF analysis of government statistics found that in the most rural parts of England, more than half of affordable homes are built on developments of this medium size. The organisation estimated the proposed change could have cost the country 32,000 affordable homes over the next decade.

The original plan had been intended to boost sluggish housebuilding rates and help the government reach its target of 1.5 million new homes by the end of the parliamentary term, with the Treasury reportedly keen on the idea.

Ministers are still pursuing other ways to ease rules for private builders. On Monday they also announced that councils will be instructed to give a "default yes" to housing developments located within reasonable walking distance of well-connected train and tram stations.

Housing secretary Angela Rayner said nearly 400,000 new homes have been completed and housing starts have risen 15% since the government took office, adding that ministers want to keep up that pace while speeding up planning approvals.