Shift in planning policy to encourage development around transport hubs

The UK government has proposed a significant shift in planning policy to encourage development around public transport hubs, aiming to boost housing supply and economic growth. Chancellor Rachel Reeves and Housing Secretary Angela Rayner announced at the end of January 2025, that land near commuter transport hubs would be “unlocked” for new housing, with a presumption in favour of development. The initiative seeks to streamline the planning process, ensuring that applications for acceptable schemes in key locations receive an automatic ‘yes’ unless there are overriding reasons for refusal. This approach is intended to provide greater certainty for developers and accelerate housebuilding.

Opportunities and Benefits

Industry experts believe the proposals could facilitate higher-density housing and mixed-use developments in well-connected areas, which aligns with efforts to create sustainable communities with reduced car dependency. Encouraging development in these locations may also support town centre regeneration by increasing footfall and local economic activity. 

Studies suggest that suburban railway stations present some of the greatest opportunities for new housing, particularly in outer London. One estimate suggests that up to 850,000 homes could be accommodated around these stations, provided planning regulations allow for higher-density development of up to ten storeys. This would require amendments to the National Planning Policy Framework (NPPF), which currently emphasises that new buildings should be in keeping with the existing local character.

Additionally, new and upgraded rail services, such as those associated with the Elizabeth Line, could further unlock development potential by improving accessibility to employment hubs. Developers are already exploring projects around key stations, taking advantage of existing planning tools such as Local Development Orders (LDOs), which grant upfront outline permission for specific types of development.

Challenges and Constraints

Despite the potential, industry experts caution that the success of the initiative depends on addressing various challenges:

Competing Land Uses:- Some railway stations, particularly those used for freight transport, require surrounding land for storage and logistics, making them unsuitable for housing. Others may be located in areas with limited public services, which would need significant upgrades before large-scale residential development could be viable.

Environmental and Planning Restrictions:- Sites with existing environmental designations, conservation areas, or other protected statuses may not be eligible for streamlined development approvals. Industry figures stress that any changes to planning rules should respect these constraints to avoid harming local character and biodiversity.

Infrastructure and Service Upgrades:- Many suburban stations lack the transport capacity and local amenities to support high-density development. Significant investment in infrastructure, including station upgrades, road improvements, and increased public transport frequency, would be required to make large-scale housing developments sustainable.

Legislative and Policy Uncertainty:- The government has yet to clarify how it intends to implement these proposals. Key planning changes are expected in upcoming legislative updates, including:

  - The Planning and Infrastructure Bill, due in March 2025.

  - The new National Development Management Policies (NDMPs), expected in late spring.

  - Further revisions to the NPPF, anticipated in summer.

Until these policy changes are finalised, it remains unclear how local authorities will be expected to prioritise development around transport hubs.

Planning Tools and Grey Belt Considerations

The government is encouraging the use of Local Development Orders (LDOs)to facilitate development on brownfield land near transport hubs. Some local authorities have already used these tools effectively, providing a model that could be expanded nationwide.

Additionally, the government’s existing grey belt policy may play a role in unlocking sites for development. Whilst some land around transport hubs falls within the green belt, certain areas could be reclassified as grey belt.This designation could allow for more flexible planning rules, enabling new housing and commercial projects in locations previously considered off-limits.

In summary, whilst the government’s proposal to streamline development around transport hubs has the potential to deliver much-needed housing and economic benefits, its success will hinge on resolving infrastructure challenges, protecting environmentally sensitive areas, and ensuring that policy changes align with local needs.