Nationally set housebuilding targets will no longer be mandatory, following changes to the Levelling-up and Regeneration Bill currently before Parliament.
In December the Government delayed the Bill to bring it back to the Commons with a series of new clauses.
The amendments aim to strengthen the Government’s commitment to building enough of the right homes in the right places, with the right infrastructure.
Housebuilding targets are now recognised as a starting point, but with new flexibilities to reflect local circumstances, as well as new penalties proposed for slow developers failing to build already-approved homes.
Cllr David Renard, the LGA’s Housing Spokesperson, said: “Councils are committed to working with government and developers to build the housing the country needs.
“It is good that the Government has recognised that algorithms and formulas can never be a substitute for local knowledge and decision-making by those who know their areas best.
“We have been clear that councils and communities are best placed to decide how to build the right homes in the right places in their local areas, with the right infrastructure, and these proposed changes will help to ensure this can happen.”
He added: “Councils have long called for more powers to tackle developers who do not build homes in a timely manner and we are pleased the Government is acting on our call for action.
“By penalising those who sit on planning permissions for longer than necessary, more homes can be provided in a speedy manner for those who really need them the most.”