Housebuilders who fail to start or progress schemes on time face being fined thousands of pounds for each unbuilt home under new government plans to tackle land banking and stalled sites.

Deputy Prime Minister Angela Rayner has unveiled the Delayed Homes Penalty, which will let councils fine developers who fall 10% or more behind agreed build-out schedules without a valid reason. The cash will be paid straight to local authorities to fund local planning work.

To get planning permission in the first place, developers will now need to commit to delivery timelines and provide regular updates through annual progress reports.

Rayner warned: “No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder.”

“This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. In the name of delivering security for working people, we are backing the builders not the blockers.”

As part of the crackdown, councils will also gain new legal powers to reclaim land from developers who don’t stick to agreed delivery timetables—and can block repeat offenders from securing future planning consents.

The tougher stance is part of the Government’s Plan for Change, which includes plans to drive housebuilding to its highest level in over 40 years by the end of this Parliament.

A technical consultation is now open for schemes of 50 homes or more, proposing mandatory build-out plans, commencement notices, and tracking reports as part of the planning process.

The Local Government Association welcomed the plans but said the penalties must be set at a level that incentivises build out and warned councils also needed the tools to build more homes themselves.