The capitulation, which comes amid a national housing crisis, will fuel fresh concerns that the prime minister is too weak to deal with unruly conservative backbenchers. It followed up to 100 Tory MPs threatening to back an amendment that would effectively force the government to scrap its target of 300,000 new homes a year in England. Instead, the target will be “advisory” and councils will be allowed to build fewer homes if they can show that hitting it would significantly change the character of an area, an exemption expected to apply particularly to rural and suburban communities. The move was described as “extremely worrying” by housing campaigners but spares Mr Sunack and the housing secretary, Michael Gove, a humiliating showdown in the Commons. They were forced to vote on the leveling and regeneration bill last month when the rebellion first came to light. For weeks, No 10 Gove and rebel leaders Theresa Villiers and Bob Seely have been holding meetings to find a “landing zone” that could satisfy both sides and avoid another blue-on-blue row over the design. Sources suggested the government initially hoped to buy off Tory opponents by offering to add amendments to the bill. These included further restrictions on “landbanking” – the practice of buying land for investment without active plans to develop it – and a crackdown on second homes, an issue in some tourist spots in Cornwall and Devon. But the rebels refused to back down and the Guardian understands that the demand to scrap the mandatory housing target was accepted by Sunak and Gove late last week. In a letter to Tory MPs on Monday, Gove said he recognized there was “no really objective way of calculating how many new homes are needed in an area” but “the planning process for housing needs to start with a number”. The change would make the centrally set target a “starting point”, with councils able to propose building fewer homes if they faced “genuine constraints” or needed to build at a density that would “significantly change the character” of their area. He said he was “grateful” to MPs who were pushing for “much needed changes”. Seely said the agreement reached was a “happy compromise”, adding that the rebel candidates had “got everything we asked for because the government said ‘this is a good idea’”. He claimed that over 100 Tory MPs had backed the proposed amendment. But a government source said the bill had been “so watered down that all you have left is a glass of water”. The bill was withdrawn at its report stage in the Commons, but could be tabled again next week with the government’s amendments added. Changes made beyond the overhaul to the targets include potential fines for companies that fail to build on land despite having planning consent and leave councils to refuse further permission across their area. A registration system for short-term rentals will also be set up, with ministers considering whether new planning permission should be granted to convert homes into Airbnb-style rental properties. Other changes sanctioned in fulfillment of Sunak’s leadership campaign pledges over the summer were to protect the green belt by issuing new guidance to councils, saying they will not need to consider such land to deliver homes. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Mr Sunak’s attempt to quell a rebellion could spark criticism from another group of Tory MPs, who had urged him to stand firm. Immigration Minister Robert Jenrick is believed to have strongly supported the mandatory target and the presumption in favor of remaining development. Senior backbench MPs have previously criticized the rebels. Simon Clarke, the former tier secretary, said their proposed amendment was “deeply wrong” and would only perpetuate “fundamental intergenerational injustice”. Sajid Javid, another former housing secretary, previously warned that scrapping the mandatory target would “reverse essential policy” and represent “a colossal failure of political leadership”. Other critics of the amendment included Robert Colville, who helped write the 2019 Conservative manifesto. Lisa Nandy, the shadow raising secretary, said it was “unconscionable in the midst of a housing crisis” to drop the mandatory target. Labor had offered to back the government, he said, meaning the rebels would have been easily defeated, but it was understood Sunak was unwilling to rely on opposition votes to pass the bill. Nandy claimed Sunak and Gove had put “party before country” and added: “This is so weak. The prime minister and the cabinet are in power but not in power.” The Priced Out campaign, which is lobbying the government to ensure more affordable homes are built, said it was an “incredibly worrying” development as the target was “a key tool to get us the homes we need”.
