A recent report by the National Audit Office is showing that the UK planning system proposed by the government is underperforming and not meeting housing demand effectively.
The government has implemented UK planning system reforms to help local authorities across England decide where what type, and how many new homes should be constructed.
An average of 177,000 new homes per year was built between 2005-06 and 2017-18. The amount has never exceeded 224,000. To meet its target, there will need to be an increase of 69% over the average number built in 2005-06. This number has gone up every year since 2012-13, with 222,000 new homes built last year.
In 2017, the Department implemented a method for local authorities to determine how many new homes they need but it has flaws and needs to be revised to ensure that 300,000 new homes are produced each year by the mid-2020s.
As of last December, only 44% of local authorities had a current plan for meeting their housing needs, although the requirement is legislated. If a local authority cannot demonstrate that it has a five-year supply of available housing land, developers have more authority to build where they want. As of November 2018, only 15 authorities have been challenged for lack of a current plan.
Infrastructure such as utilities, transport, and healthcare must be in place to create homes, but this is difficult because government departments do not have to align their investment strategies with the infrastructure plans of local authorities.