Right to Build legislation can benefit smaller property firms

New Housing Bill will force local authorities to allocate land with planning permission to self-build entrepreneurs

New legislation that could help small and medium-sized housebuilders play a greater role in increasing the supply of new homes in the UK has received backing from the Chartered Institute of Housing.

New Housing Bill will force local authorities to allocate land with planning permission to self-build entrepreneurs
New Housing Bill will force local authorities to allocate land with planning permission to self-build entrepreneurs

The government’s new Housing Bill, announced in the Queen’s Speech on Wednesday, will require local planning authorities to support custom and self-builders registered in their area in “identifying suitable plots of land to build or commission their own home”.

The government says its Right to Build policy will help increase housing supply and diversify the housing sector by giving people the right to be allocated land with planning permission for them to self-build or commission a local builder to build a home.

Greg Clark, the new Secretary of State for Communities and Local Government, explains: “Self-build delivers a majority of homes in many other countries and can act as a boost to smaller and medium sized builders.

“‎The new Right to Build will offer support to aspiring self-builders by requiring councils to identify and release shovel-ready plots so people don’t have to wait years to get work underway.”

Gavin Smart, deputy chief executive of the Chartered Institute of Housing, has backed the proposed new legislation.

“The right to build is a sensible step which could increase the contribution that self-build makes to housing supply. It should also provide a boost for small and medium-sized builders which historically have played a critical role in delivering new homes.”

Andy Frankish, new build director at the Mortgage Advice Bureau, adds: “MAB has long suggested that custom build can provide the solution to a lack of housing stock in Britain, as it benefits builders, lenders and consumers alike and will stimulate development.

“It is good to see that policymakers are listening to the voice of industry, and we look forward to the scheme’s implementation.”