How Will the Planning and Infrastructure Act Change Property Development in the UK?

The government has called it the most significant planning reform in a generation. The Planning and Infrastructure Act 2025 received Royal Assent on 18 December 2025, promising to transform how Britain builds homes and infrastructure. For landlords and property investors, understanding these changes matters enormously. If you want to explore how this legislation affects property investment, learning about the Planning and Infrastructure Bill and its implications helps you plan ahead.

The Problem the Act Aims to Solve

Britain's planning system has been broken for years. We need approximately 300,000 new homes annually. We build around 200,000 in good years. The shortfall has created a housing crisis that pushes rents higher and locks buyers out of the market.

Planning permission numbers tell the story clearly. In the third quarter of 2025, only 42,000 new homes received planning approval in England. That represents a 31% year-on-year decline and the lowest quarterly total in over 15 years.

Major infrastructure projects face similar delays. Wind farms and solar projects get tied up in years of objections. Transport improvements languish in planning processes. The system has become a barrier to growth rather than a framework for development.

Key Changes in the Act

Streamlined Planning Decisions

The Act creates a permanent presumption in favour of suitably located development. Proposals on suitable urban land can be considered acceptable by default. Planning committees will focus on significant developments rather than smaller projects, speeding up local decisions.

Councils gain powers to set their own planning fees, allowing them to cover costs when deciding applications. This should improve resourcing and reduce backlogs that currently delay decisions for months.

Strategic Planning Across Regions

The Act introduces spatial development strategies that look across multiple local planning authorities. These strategies must specify housing distribution, embed climate change policies, and identify strategic infrastructure requirements.

This approach mirrors the system operating in London for over 20 years. It ensures housing delivery considers infrastructure needs from the start rather than adding them as afterthoughts.

Faster Infrastructure Delivery

Legal challenges to major infrastructure projects face new limits. Only one attempt is permitted rather than three for cases deemed totally without merit by courts. This prevents endless legal delays on nationally significant projects.

Development corporations receive extra powers to speed up delivery. The Nature Restoration Fund allows developers to proceed faster while Natural England implements environmental measures at scale.

What This Means for Housing Supply?

The government targets 1.5 million new homes and claims the Act will inject £7.5 billion into the UK economy over the next decade. Housing Secretary Steve Reed has emphasised the "build baby build" approach, promising to tear down barriers blocking construction.

New towns could deliver 300,000 homes, with 40% designated as affordable and half of those for social rent. These developments will include GP surgeries, green spaces, libraries, and transport infrastructure.

However, realistic expectations matter. Planning reform takes time to translate into actual construction. Significant increases in housing supply are unlikely before the late 2020s. The effects should become noticeable over five to ten years rather than immediately.

Implications for Landlords and Investors

Rent Pressures May Ease Eventually

More housing supply typically moderates rent increases. If the Act delivers on its promises, the relentless upward pressure on rents in high-demand areas should eventually slow. This affects investment calculations for buy-to-let properties.

Property Values May Grow More Slowly

Increased supply generally moderates price growth. For existing property owners, this may mean slower appreciation than historical trends. For new investors, it could create buying opportunities as market dynamics shift.

Development Opportunities Expand

Permitted development rights for commercial to residential conversions and upward extensions may become easier to use. The Act creates opportunities for property entrepreneurs willing to navigate the reformed system.

Regional Variations Will Matter

Strategic planning across regions means some areas will see concentrated development while others remain protected. Understanding where growth is planned helps investors position portfolios appropriately.

Frequently Asked Questions

When did the Planning and Infrastructure Act become law?

The Act received Royal Assent on 18 December 2025. Some provisions took effect immediately, others commenced in February 2026, and many await further commencement orders throughout 2026 and beyond.

How many homes will the Act deliver?

The government targets 1.5 million new homes. This includes potential for 300,000 homes from new towns. However, actual delivery depends on implementation success and market conditions over the coming decade.

Will planning permission become easier to obtain?

For suitably located developments, yes. The presumption in favour of development and streamlined committee processes should speed up approvals. However, individual applications still require meeting relevant standards and conditions.

How does this affect existing landlords?

Increased housing supply should eventually moderate rent growth and property price appreciation. Landlords may face more competition for tenants as supply improves. However, quality properties in desirable locations will continue performing well.



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