The government wants 1.5 million new homes: here's what Yorkshire developers need to know about 2026

The UK government has committed to delivering 1.5 million new homes during this Parliament – a bold target that creates significant opportunities for developers, investors and landowners.

However, 2026 will also bring substantial legal changes affecting every stage of development. Getting ahead of these requirements will help you protect margins, avoid delays and structure deals that deliver long-term value.

Planning reforms create momentum

The Planning and Infrastructure Bill, currently with the House of Lords, aims to make it easier to deliver affordable housing and regenerate brownfield sites. Key changes include faster planning decisions led by officers rather than committees, with simplified consultation requirements reducing bureaucratic red tape.

Local authorities will gain increased powers, including the ability to set their own planning fees (likely meaning higher costs initially) and stronger compulsory purchase powers for affordable housing development. On the positive side, mayors and local authorities will be able to introduce strategic plans that better align housing growth with infrastructure needs, creating more opportunities for large-scale projects including new towns.

The Bill also proposes to reduce third parties' opportunities for judicial review, which should shorten delays between obtaining planning permission and starting on site.

Environmental costs you need to factor in

Biodiversity Net Gain (BNG) became mandatory for most developments in February 2024, requiring you to demonstrate a minimum 10% increase in biodiversity value. By 2026, the regime expands further with stricter verification requirements for off-site biodiversity units and narrower exemptions.

Build BNG costs into your initial appraisals – both for habitat surveys and ongoing monitoring. If you're using off-site units, secure these early as availability may become constrained as more projects compete for credits.

The transition to commonhold

The government confirmed its intention to make commonhold the default tenure for new flats through the Commonhold White Paper in March 2025. A ban on new leasehold flats is expected, with stricter regulation of service charges and building insurance commissions.

If you have flatted schemes in planning, start considering commonhold structures now. Consult your solicitor about how your site should be set up in preparation for plot sales as early as possible - ideally as soon as planning permission has been obtained. Early planning will help you avoid costly restructuring later.

Turning complexity into competitive advantage

2026 presents a unique window of opportunity for residential development. The changes are substantial, but developers who understand the requirements early and factor them into their planning will be best positioned to capitalise on the government's ambitious housing targets.

Early legal input helps you identify potential issues before they become problems, structure transactions that protect long-term value and ensure your development is legally and commercially aligned from the outset.

Joseph McCullough is a senior associate in LCF Law's real estate team. To discuss how these changes might affect your development projects, contact him on 0113 487 3935 or [email protected], or read more at lcf.co.uk