Labour’s new housing model comes from California’s backyards
A quarter of all homes approved in California in 2025 were so-called granny flats, according to analysis.
London experienced California-like sunshine this summer, prompting the U.K. to consider adopting the Golden State's housing policies. With successive governments failing to tackle the housing crisis, Prime Minister Andy Burnham's new administration is eager to boost construction rates. A recent update to planning rules in England allows for adding homes above existing buildings and in gardens, mirroring California's "accessory dwelling units" (ADUs) that now constitute a quarter of all new housing.
Experts believe these adjustments could help the government meet its target of constructing 1.5 million new homes before the next general election. However, they caution about potential political backlash from residents concerned about losing their neighborhood's character and green spaces. Simon Creer from the Royal Town Planning Institute acknowledges the policy's potential but stresses the importance of early and meaningful communication with communities to manage local opposition.
The government's recent tweaks to planning rules aim to accelerate densification by encouraging upward extensions and filling gaps around houses.
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