“No-one can live in a planning permission”

Over the last weekend, the Government published a policy paper titled “Speeding Up Build Out”  alongside a technical consultation on implementing measures to improve build out transparency.

With the positive changes to the NPPF now in full force and proposals to introduce national development management policies, a National Scheme of Delegation, and a more proportionate role for statutory consultees in motion, the Government has turned its attention to delivery. After all, as the policy paper aptly states, “No one can live in a planning permission”, and delivery of housing (not planning permissions) will ultimately define the legacy of this Government.

The paper identifies a five-part strategy which the Government intends to speed up build out. These are:

• Seeing through the aforementioned reforms to the planning system.
• Committing to a permanent, comprehensive Mortgage Guarantee Scheme to ensure a steady supply of low-deposit mortgages.
• Supporting the growth of SME developers building small sites by tackling barriers such as timely planning decisions, regulatory burdens such as BNG, the availability of suitable sites and access to finance.
• Encouraging large, strategic sites to be built with greater tenure diversity, delivering higher shares of affordable housing and Build to Rent homes.
• Increasing the role for strategic master-planning, in particular through Homes England, new Development Corporations and the expanded role for Mayoral Strategic Authorities in spatial planning.

Aside from the changes to the planning system, the strategy itself is not particularly ground-breaking and consists of measures we have largely heard or seen before, at least in principle.

The primary substance of the policy paper, however, is how the Government intends to enforce planning permissions being built out, and it sets out a number of measures on how this would be achieved in its technical consultation. This includes a requirement to submit a build out statement as part of planning applications, notifying LPAs before development is commenced and to report annually to LPAs on housing delivery – all of which are essentially paper exercises. In the absence of any ‘carrots’ of greater interest is the ‘stick’ approach which proposes the introduction of penalties for developments that are not built out or built out a slower rate than expected. These include:

• The power for LPAs to decline to the determination of planning applications made by persons who applied for, or who are connected to, an earlier planning permission for development of land in the LPA’s area which has not been built out at a reasonable rate.
• The greater use of Completion Notices requiring developers to complete their development within a certain period of time if the LPA considers it will not be completed within a reasonable time.
• The introduction of a Delayed Homes Penalty, which the LPA can impose if the development falls materially behind pre-agreed built out schedules.

The technical consultation sets out in detail how these measures might be applied and seeks the views of the wider industry, which we encourage all affected to engage with, and we would be delighted to discuss how we can assist you with this.

What is clear is that the Government is now looking for a return on its welcome commitment to the growth agenda, and whilst it is still resolute in backing the builders, not the blockers, the backing comes with its own strings attached. Whilst stakeholders across the industry will undoubtedly have different views on the measures set out in this policy paper, it is fundamental that any measures imposed are finely balanced to ensure that they actively promote build-out, and do not in any way discourage it. We would welcome a more balanced approach that addresses both carrots and sticks.

Discover more about Planning in the Residential sector on our dedicated page HERE, part of our Residential:Connected initiative.