Prohibitive Property Prices Prompts U.K. to Relax Planning Rules

  • Home prices continue to ‘sky rocket,’ written proposal says
  • Developers may have to build swiftly after getting permission

Prime Minister Theresa May will seek to ease planning rules to help Britons priced out of the housing market.

In a formal policy paper, her government seeks to help developers erect new buildings faster in urban areas linked to public transport. It will require local authorities to draw better plans to keep up with demand and for construction to start within two years of securing permissions. Regulation protecting rural land around London and other cities will stay under the proposals.

Read a recent story on demand for London property in the aftermath of Brexit.

The average home in the U.K. costs a record eight times average earnings and more than two million households spend a third or more of their disposable income on housing. The government’s answer is a supply-side fix.

“With prices continuing to sky rocket, if we don’t act now, a whole generation could be left behind,” Communities Secretary Sajid Javid will tell Parliament, according to his office.