Planning System – Is a Radical Reform Required?

Posted by Mesa Financial on 5th September 2022 -

Recent studies show smaller firms feel the complexities of the planning process and its associated risks, delays and costs are the key challenges they face in house-building.

Planning is a complex task in its own right and very clear that radical reform is required as the current system is just not delivering the required targets of 300,000 new homes per annum. The current Government has diagnosed the planning system as central to the failure to build enough homes, particularly where housing need is at its most severe.

The Lords Built Environment Committee identified engaging with the planning system as a particular challenge for SMEs. Evidence submitted by the HBF said 48% of SME house-builders’ output was constrained by the planning system. 

"While larger companies can mitigate risk across dozens of sites in some cases, small firms encountering delays on one or two sites will be the difference between a year of growth and a year of contraction”

HCLG (The Housing, Communities and Local Government Committee’s) inquiry into planning reforms generated evidence from, and on behalf of SMEs, calling for: 

• Homes England to dispose of small parcels of land to them with permission in principle for development. 
• Ringfencing land for self and custom build. 
• Putting the Development Management policies section of the NPPF on a statutory footing. 
• Requiring a minimum number of SMEs on large multi-developer sites. 
• Increased resources for local authorities to oversee larger sites and the promotion of a wider range and mix of housing sites in Local Plans.

The country will soon have a new prime minister, and whether the new occupant of Number 10 ends up being Rishi Sunak or the bookies favourite Liz Truss, what the housing industry wants to know is whether the new PM will finally give the housing crisis the priority it fundamentally requires.

Only time will tell but I have a sneaky suspicion this conversation will be somewhat similar in 2023 and beyond unless the government make radical change with the current process. I could be classed as pessimistic but we have a planning system that has been in place since just after the Second World War. Technology is moving at serious pace on a global scale and we're still using rubber stamps in some planning departments which leads me to my only opinion on this matter. Maybe it's time to look at the private sector for the planning process and integrating technology to some degree.

Chris Treadwell - Senior Associate at Mesa Financial

 

*Data sourced from House of Commons Library ‘tackling the under-supply of housing’'.