NPPF 2024: Understanding the New Standard Method for Housing Need

In December 2024, Government published a National Planning Policy Framework (NPPF). The revised NPPF replaced the 2023 NPPF and introduced a revised ‘standard method’ for calculating minimum housing need for each local authority in England, in an attempt to deliver the 300,000 dwellings per annum (dpa) targeted by the Labour government.

Housing need is an unconstrainted ‘policy off’ assessment of the minimum number of homes needed in an area. Assessing housing need is the first step in deciding how many homes to plan for. However, it does not show the actual housing requirement.

The housing requirement is a “policy on” figure. It considers local factors, policies, and constraints to determine whether the unconstrained housing need figure can be delivered in full.

Paragraph 61 of the 2024 NPPF clearly states “The overall aim should be to meet an area’s identified housing need”.

The housing requirement can also exceed the minimum housing need figure to account for circumstances which include (but are not limited to) significant infrastructure or economic investment, large scale regeneration, or a new town development.

Read our Housing 2040 report on the New Standard Method 2024

England faces a critical housing shortage by 2040, and our data-driven report—built from ONS Census data, population projections, and housing registers—reveals exactly where and what type of homes will be needed most. We’ve mapped the regions requiring the most first-time buyer and family homes, identified affordable housing pressure points, pinpointed areas with aging populations living in under-occupied properties, and forecast where student accommodation demand will surge. These aren’t just challenges—they’re investment opportunities. But the message is clear: to meet England’s diverse housing needs in 2040, we must start building the right homes today. Read our Housing 2040 report today!

What has changed under the new 2024 standard method?

As part of the new 2024 standard method there are two steps which lead to the calculation of the need figure. Step 1 (baseline need) is 0.8% of the existing housing stock in the local authority. This replaces the previous Step 1 that relied on outdated household projections.

Step 2 looks at how affordable housing is. It is calculated by taking the mean average of the median affordability ratio for each local authority over the five most recent years available. This replaces use solely of the most recent year’s median affordability ratio.

Crucially the new method now uses an upward affordability adjustment with a multiple of 95% rather than the previous method’s 25%.

New median ratios are published as part of a wider dataset every 12 months by the Office for National Statistics (ONS) and their latest median affordability ratios were published in late March 2025.

The interactive map below shows the minimum housing need for each local authority in England. This is based on the new method and incorporates the latest 2024 median ratios into the mean average for the past five years. The comparison shows the previous 2023 NPPF method.

How has demand changed under the new method?

The overall need figure has increased from circa 300,000 dpa under the old method to circa 370,000 dpa under the new method.

As the chart below shows, the new method exceeds the old method in every region except for London. However, London remains the highest need per year at circa 88,000 dpa. The highest increase from the old method is in the north west (61%).

Regional minimum housing need: New standard method need compared with old standard method need

The second chart compares average annual delivery over the past three years with the new standard method.

The chart shows how the biggest increase in delivery is needed in London (148% increase) and the lowest is in the East Midlands (10% increase) where delivery had exceeded the old standard method over the past three years.

Standard method need compared with average annual delivery 2021/22 – 2023/24

How our Economic Development team can help?

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