Theresa May to deliver planning rules changes in housing speech

Today (March 5), Theresa May is to warn developers who are too slow at building houses, that their past record could count against them when they bid for planning permissions.

The Prime Minister is to also highlight the “pervasive incentive” in the bonus structure of some house builders which does not encourage them to build homes that are affordable.

In a speech in London, the PM is to say the government is “rewriting the rules on planning” aiming to aid developers and local authorities build more properties.

The new planning rules will aim to make the system fairer and more effective by streamlining the process and ending barriers to building.

Speaking at a national planning conference, the Prime Minister is expected to say that the UK “cannot bring about the kind of society I want to see, unless we tackle one of the biggest barriers to social mobility we face today: the national housing crisis.”

She will continue: “The result is a vicious circle from which most people can only escape with help from the bank of Mum and Dad. If you’re not lucky enough to have such support, the door to home ownership is all too often locked and barred.”

The Prime Minister will warn: “The gap between permissions granted and homes built is still too large.”

She will say that, when used incorrectly, planning rules can create barriers to building, tying up councils in red tape and allowing some developers to game the system.

Once planning permission is granted, a variety of factors can slow down delivery and the Oliver Letwin Review is looking at explaining the gap.

The new rules will see around 80 of the proposals set out in the Housing White Paper implemented, including using land more efficiently, fast tracking planning permissions into homes, giving greater certainty to local authorities and putting local plans in place to give communities more control.

The Prime Minister will be clear that “it’s also time for builders and developers to step up and do their bit.”

She could add: “The bonuses paid to the heads of some of our biggest developers are based not on the number of homes they build but on their profits or share price.

“In a market where lower supply equals higher prices that creates a perverse incentive, one that does not encourage them to build the homes we need.”

Theresa May will highlight some areas where action could be taken, such as: “Allowing councils to take a developer’s previous rate of build-out into account when deciding whether to grant planning permission.”

The Prime Minister will urge councils to “do all they can to find sites, grant planning permissions and build homes” including through adopting a new nationwide standard that shows how many homes authorities need to plan for in their area.”

Only 10 per cent of England has been built on and only 13 per cent is covered by Green Belt - the purpose of which is to prevent urban sprawl.

The PM aims to be clear that developers and local authorities must only allocate Green Belt sites for development for exceptional reasons. Should development go ahead, it must first make use of brownfield sites, and where land is removed, they must create new spaces.

This major overhaul to the National Planning Policy Framework - the first in six years - will be launched today to provide a comprehensive approach for planners, developers and councils so they can build the homes this country needs.

The plans will be consulted on over the next 8 weeks - with a final version expected to be published this summer.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →