Angela Rayner reinforced over the weekend that local authorities should prepare for planning reforms, but what do industrialists think on the government’s actions so far?
The new Labour government have reminded us that planning reforms are on the horizon, promising to fix the “chaos and subjectiveness” in the current system.
The idea of a planning reform is generally well received by the construction industry, but many feel that more will need to be done to fix the other myriad of issues.
Planning reforms will make it easier to gain approval
The planned changes will streamline the process, allowing local authority planning officers to rubberstamp proposals without requiring permission from a council committee.
Instead, the plans will need to comply with local plans and national regulations on standards.
This is intended to prevent developments from getting stuck, as many projects have. Government planning statistics show that, from January-March, just 19% of major development applications were determined within the statutory 13-week period, and just 38% of minor development applications were determined within the statutory eight-week period.
Tony Mulhall, senior specialist of RICS, said: “The government’s plans are a step in the right direction and mirror approaches operating in countries such as France and Ireland where applications are primarily decided by officials against clear objectives contained in the plan. These countries fulfil their democratic obligations at the Local Plan-making stage, which requires effective public participation to decide the objectives to be included in their local plan. Besides, substantial delegation to officers already operates in the English planning system. However, we estimate that up to three-quarters of Local Plans are out-of-date. These take time to consult on and update, and also require significant resource, which we know planning departments are lacking in.
“While the government has committed to creating 300 additional roles at entry level for planning officers, this adds to the existing 1,000 vacancies. Therefore there must be a concerted effort on creating the skills base required to move forward with proposed planning reforms.
“A local plan should be clear about (a) what is acceptable development; (b) what is unacceptable development; and (c) what is open for consideration. This brings certainty at the plan making stage for the local community about what they should expect in terms of new development; and certainty for investors and applicants about what will be granted permission, helping to de-risk development.”
Highlighting the out-of-date plans, Rayner also encouraged local authorities to prepare their plans, saying: “Because we haven’t had these compulsory plans locally, we’ve seen speculative development where greenbelt land has been developed on… we’ve told councils they’ve got to have those plans.
“If developers follow the national framework, which protects the environment and looks at other elements, then they shouldn’t be stuck in the system for years.”
Some feel the focus is in the wrong place
Not everyone is happy with the removal of council committees from the process, with some saying that many planned developments had, in fact, been agreed in principle by committees, and developers had not brought their plans forward.
Others lament it as removing local participation in what is built in their community.
However, some see it as either pouring too many resources into one aspect of a multi-faceted issues, or a complete disregard of those other aspects altogether.
Daniel Austin, CEO and co-founder at ASK Partners, said: “Government initiatives such as the 95% mortgage guarantee scheme and £5bn allocation for new homes are clearly positive initiatives. However, a critical issue remains overlooked: the cripplingly high construction costs that severely limit the number of projects that can be completed. While the planning process also garners attention, there appears to be little consideration of how to support the housebuilding industry through these financial pressures. If construction projects continue to stall due to steep costs and an imbalance between delivery expenses and expected sales, land will increasingly lose its appeal for builders and investors, further exacerbating the housing crisis.
“The rise in construction costs is as damaging to housing delivery as fluctuating market sentiment and rising interest rates. Compounding this, the government has introduced measures such as the Building Safety Act and ESG requirements. While these initiatives are much-needed, they add significant cost pressures to builders’ portfolios, costs that many cannot sustain, ultimately risking projects being abandoned.
“To address the housing crisis, the government must consider the broader impact of rising costs on the entire market. A holistic approach is needed and one that ensures financial viability across small, medium, and large-scale developments. One solution would be targeted financial support for the housebuilding sector, which could help make construction manageable again. Without such support, delivering on their promise to build one and a half million homes becomes increasingly unlikely. By tackling this issue head-on, the UK can reinvigorate its real estate sector and work towards a sustainable resolution to the housing shortage.”
