Industry reacts to planning reform

The government has acknowledged a lack of building has long fuelled the housing crisis and today announced new changes to planning rules. Following the announcement, the housing industry reacted.

Warren Lewis
10th July 2015
plans

Business secretary, The Rt Hon Sajid Javid MP, said: "The UK has long been incapable of building enough homes to keep up with growing demand. This doesn’t just frustrate the ambitious of hardworking people who want to own their own home – it also harms productivity and restricts flexibility in the labour market.

So we’re going to introduce a new zonal system, which will effectively give automatic planning permission on suitable brownfield sites like the one behind me. We’ll make sure the homes that are needed get built – if a council fails to produce a suitable local plan, we’ll have it done it for them. And we’ll be devolving major new planning powers to London and Greater Manchester.

Too many homeowners are frustrated by red tape that stops them extending their homes to accommodate growing families. It’s a particular problem in our crowded capital city. So today I can announce that the government will be working with the Mayor of London to make life easier for people who want a little extra space. We’re going to remove the need for need for Londoners to seek planning permission for upwards extensions up to the height of an adjoining building, provided your neighbours don’t object. It’s a simple step that, at a stroke, will take layers of bureaucracy and cost out of the planning system."

Jonathan Bower, Partner in law firm Bond Dickinson LLP’s Planning & Infrastructure Team, commented: “The Chancellor’s plans set out in "Fixing the Foundations" to reform the planning system will be welcomed by house builders and potential buyers alike. Local Authorities, however, will view the changes less favourably as they may now be forced to see homes built in their area even if opposed to development.

One element which was mooted as being subject to further reforms was the extension of the office to residential permitted development rights but the policy paper is silent.  This will result in continued uncertainty for the residential industry and funders unless urgently clarified.  The concept of zoning to facilitate greater development on brownfield sites through permitted development is interesting and as with all things the detail will be critical. This move won't be without critics concerned about consultation, design and heritage issues amongst other matters.

While the plans set out today are a step in the right direction for house building, we shouldn’t lose sight of the chronic issue we have in the UK with housing and speed of delivery. Recent estimates outlined in the Lyons Housing Review suggested that at least 240,000 new houses need to be built per year just to meet current demand and that on current numbers we are only seeing about 125,000 delivered.  We have supported the concept of housing being treated as infrastructure and today's announcement to legislate to allow major infrastructure projects with an element of housing to apply through the Nationally Significant Infrastructure Regime process is a positive move but it is essential that large scale developments are properly planned and the scope of this change needs clarifying.  We will watch with interest as further plans are unveiled in the coming months.”

Dr Colin Brown, Director of Engineering at the Institution for Mechanical Engineers, said: “While today’s announcement on planning reform shows that the Government is taking action on the UK housing crisis, it needs to be far more radical in its thinking if it wants to deliver an effective solution.

Reforming the planning system is a one approach, but we fundamentally need to look at overhauling the way we construct homes in the UK.

Off-site construction technologies have advanced greatly in recent years and can offer shorter build times, better quality, better energy efficiency, less waste, and lower costs for buyers.

Government needs to support investment in the UK supply chain for off-site construction technologies, must reverse policies that are working against improvements in quality and standards and work much harder to diversify the UK housing supply market, by opening up much greater opportunities for self-builders, local authorities and housing associations.

We need a minimum of 250,000 houses to be built each year to keep up with the nation’s growing population. At no point over the last two decades has the figure exceeded 180,000, therefore, it is imperative this number is increased so we can meet demand.”

Paul Smith, CEO of haart estate agents, said: “Our latest data shows a significant fall-off in first-time buyer registrations compared to last year, with around 23% fewer looking to take that first step on the property ladder, and the issue is affordability. First-time buyers struggle to pull together a deposit and have been hit by the decline of higher loan-to-value lending.
 
The key to rebalancing the housing market is an injection of supply and the measures announced today will accelerate housebuilding in some areas and remove red-tape around planning. Along with the £100 million cash boost to small housebuilders announced earlier this week, we are finally taking proactive steps toward getting Britain building again.
 
Tax breaks for housebuilders would also encourage more building, as would incentives for budding grand designers looking to build a home of their own. Population growth however means there will inevitably come a time when some difficult conversations will need to be had around NIMBYism and which areas will be targeted for new homes.”

Real estate service provider, DTZ, released a statement saying taht the reforms were a welcome initiative: "Granting outline planning permission to target housing delivery on brownfield land will increase certainty for developers on the type and scale of development that is acceptable and will expedite the planning process.

Given the Government’s target of 200,000 homes per year and the goal of 90% of brownfield sites having planning permission by 2020, DTZ believe it is essential that the planning system responds to make it easier to build on such sites. While this move will clearly give brownfield sites an ‘advantage’ over greenfield in the planning process, it will not remove planning application requirements entirely.

Karen Charles, Head of DTZ’s Planning team, said: “The finer detail of any residential development will still require detailed consideration such as design, access and planning obligations and therefore the level of certainty provided will be more limited than many may first think. However, the assurance that a brownfield site is acceptable for residential development at a density consistent with national planning policy will remove a major hurdle for landowners and developers.”

Planning is not the only, or in many cases the main, constraint affecting the delivery of brownfield sites.

Nick Lambert, Head of Brownfield Land at DTZ, commented: “Speeding up the planning process is only one part of the solution and it is essential that public and private sector partners innovate to overcome the various constraints.”

Andy Frankish, New Homes Director at Mortgage Advice Bureau (MAB), comments: “Today’s announcement marks a definitive step towards overcoming the ineffective planning laws that prevent healthy levels of housebuilding. It is good to see that the government has again acknowledged the extent of Britain’s housing shortage: demand has long outstripped supply, and the affordability problems faced by first time buyers are at risk of becoming acute.

Proposals to bypass local council when granting planning permission for brownfield cites are long overdue. With such severe shortages of housing stock across the country, it is ludicrous that brownfields sites remain underutilised, and granting automatic permission is a common sense approach. The question over whether there is enough brownfield land to support Britain’s housing needs is a valid one. Although greenbelt land is rightly protected, in certain circumstances – such as when it is adjacent to brownfield sites – development on the greenbelt may be necessary.

By devolving planning power to large metropolitan authorities in London and Manchester, local authorities will have more influence over housing development in the area and ensure this best suits the needs of its constituents. The question now is how long it will take the government to implement these changes: action must be taken as soon as possible if we are to stave off a worsening housing crisis.”

Justin Gaze, Knight Frank’s Joint Head of Residential Development, comments: “The government’s announcement today concerning changes to the planning system is a step in the right direction. Yet policymakers still fail to address the fundamental issue of development capacity across the industry and the ever increasing cost of materials. From bricklayers to site managers, the lack of skilled construction workers and professionals in Britain is one of the largest factors that continues to constrain the supply of new homes. Until this is addressed, it is unlikely we will see a marked change to development volumes.”

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