What the Planning and Infrastructure Bill Means for Investors
Labour has promised to build 1.5 million homes before the next election. The UK Planning and Infrastructure Bill was granted royal assent on 18 December 2025 and has introduced reforms for fast housing delivery and modern the planning system. The EA Guaranteed Rent provides expert insights on how this bill impacts landlords and investors.
Key Objectives of the Planning and Infrastructure Bill 2025
The Planning and Infrastructure 2025 Bill has five key objectives:
- The Bill aims to streamline the consent process for Nationally Significant Infrastructure Projects (NSIPs) like electricity networks, roads, and energy projects.
- The Bill introduces a more strategic approach to environmental protection, coordinated by the Nature Restoration Fund.
- This piece of legislation helps make planning decisions faster and more consistent by reforming planning committees.
- The bill introduces compulsory purchase powers and streamlined land assembly processes to remove excessive “hope value” compensation.
- Introduction of Spatial Development Strategies at the sub-regional level to address housing needs that can’t be met by individual local authorities.
How Planning and Infrastructure Reforms Impact Landlords and Investors?
The new bill to modernise and update the infrastructure has key impacts on investors and landlords.
Improved Returns and Reduced Holding Costs
The faster approvals cut planning delays for housing and infrastructure projects. The clearer timelines and reduced judicial delays directly help improve returns. Quick resolution on large scale application reduces holding costs and uncertainty.
Strategic Opportunities For Investors
The reforms give investors greater certainty on priority development areas. They can plan and execute developments in projects that can deliver long-term returns.
High Planning Costs
The local fee setting amendment may rise and could deter smaller investors in some areas. The cost could be higher in the areas where demand for planning is high. In some areas, the faster approvals may offset the high fees.
What are the Key Infrastructure Reforms introduced in the Bill?
The Planning and Infrastructure Act 2025 introduces key reforms to streamline the infrastructure delivery processes:
Faster And Flexible NSIP Approvals
According to the new reforms, Nationally Significant Infrastructure Projects (NSIPs) will have a more efficient process. The NPSs (National Policy Statements) will be updated every 5 years unlikely the old system, where they were barely updated in 10 years. Projects can be moved out of the NSIP system if approved better through other planning routes.
Streamlining the Consultations
The bill eliminates unnecessary complexity in consultation through the following changes. Bill shortens consultation reports based on key themes. The Category 3 parties (land interest groups) are notified rather than being consulted. New guidance requires statutory consultees and local authorities to achieve early resolution of the issues before submission.
Judicial Review Opportunities
To reduce delays due to weak legal challenges, the bill removes the paper permission stage for judicial review of NPSs and development consent orders and prevents appeals where cases are judged totally without merit.
Energy and Transport Infrastructure
The planning and infrastructure act introduced a “first-come, first-served” approach to the electricity grid connections based on strategic energy plans and project readiness. It aimed to unlock renewable energy projects and long-duration electricity storage schemes (LDES). It has also amended the Forestry Act 1967 to use forestry land for the generation, transmission, storage, and supply of electricity.
Highway and Transport Reforms
The bill amends some Highway Act (1980) rules by introducing temporary land possession powers to avoid full compulsory acquisition. The strategic highway companies can start making or cancelling trunk roads directly.
Major Changes To the UK Planning System
The planning bill includes fundamental reforms to strengthen local planning authority capacity.
- Local planning authorities can set their own planning fees instead of relying on government-set rates.
- The bill also reforms planning committees, clarifying which decisions are made by officers.
- The bill introduces Spatial Development Strategies for sub-regional planning. Local plans will be required to be in general conformity with the operative development strategies.
- Compulsory Purchase and Land Assembly reforms reduce delays over “hope value” compensation. It also simplifies the process of acquiring land for larger-scale developments.
Can the UK Planning Reform Bill Save Its Housing Crisis?
The Bill aims to speed up development and make housing delivery more predictable.
Faster Planning Decisions
Firstly, the bill aims to have fewer planning decisions taken by the local Committees under the current system. The decisions are now taken by trained planning officers of the government.
Regional Planning Coordination
The infrastructure bill also outlines the new Spatial Development Strategies, which consider areas across multiple local planning authorities for new bills.
Land Access
The Bill has strengthened compulsory purchase and land assembly powers unlock sites previously held up by complex planning rules.
Infrastructure Support
The streamlined approval for roads, utilities and energy-related projects makes housing development more viable.
The Scale of Challenge
Experts have identified a 4.3 million home shortage in the UK due to an inconsistent and unpredictable planning system. The government states that the new package of planning laws is in response to the nation’s housing crisis.
Analysts are cautiously optimistic that this new planning system will help solve the major housing crisis by 2029. These reforms are the big steps if implemented effectively, help getting Britain build again.
Planning and Infrastructure Bill Timeline
The Planning and Infrastructure Reforms Bill underwent several stages from its introduction to becoming a law. The Labour Planning and Infrastructure Bill has received Royal Assent and has now become law.
| Stage | Date (2025) |
| Introduced to Parliament | 11 March 2025 |
| Passed the House of Commons | June 2025 |
| Passed the House of Lords | November 2025 |
| Final Amendments (Ping-pong) | Nov–Dec 2025 |
| Royal Assent | 18 December 2025 |
Conclusion
The planning and infrastructure bill 2025 brings one of the most significant updates to the planning system in decades. The government has simplified planning decisions, strengthened compulsory purchase powers and improve regions coordination. The reforms appear to be effective if implemented correctly.
The new framework would help to support the delivery of the new homes and essential infrastructure through a predictable and efficient planning system. As changes begin to take effect, the investors across the property and development sector have their eyes on seeing that the bill has delivered its promise of getting the UK built again.
