Property industry welcomes changes to UK planning system

Government plans to overhaul the UK’s planning system including making applications more streamlined and developments more sustainable have been widely welcomed by the property industry.

In particular a new presumption in favour of sustainable development, so that the default answer to development is ‘yes’, is seen as a major step forward along with making it easier for commercial premises to be converted into housing.

The country’s current planning system has been regarded as over complicated and been responsible for holding back investment deterring development and growth.

‘The Government has indicated its intention to introduce a presumption in favour of sustainable development as part of the National Planning Policy Framework. We see this as a crucial part of the Government’s pro-growth agenda and as a counterweight to concerns that localism could equate to nimbyism in practice,’ said Liz Peace, chief executive of the British Property Federation.

'However, it must not be hedged around with so many restrictions as to be meaningless in practice. It is right that planning should prevent urban sprawl but the designation as green belt should not mean ruling out any development, the green belt should be an additional hurdle, not an insuperable barrier,’ she added.

She pointed out that removing the targets for the proportion of new development on brownfield land should inject more flexibility, allowing much needed housing and new development to take place where brownfield land is scarce. That includes much of the South East where housing pressures are so acute.

And she welcomed the injection of more innovation in the system such as considering a pilot of a land auction model, starting with public sector land.

The changes will include a number of measures to streamline the planning applications and related consents regimes removing bureaucracy from the system and speeding it up. This will include a 12 month guarantee for the processing of all planning applications, including any appeals.

The government will also consult on proposals to make it easier to convert commercial premises to residential. ‘We hope local authorities will view this very positively. Supporting office to residential conversions will provide them with a double boost to their income, via the New Homes Bonus and the fact that there are replacing a central Government tax, business rates, with local council tax receipts. If that were not enough, conversion work will provide a much needed boost to jobs and growth and revitalise some rather shabby looking blots on our townscapes,’ said Peace.

Ben Everest, partner at West End specialist estate agency, LDG, said the moves should help to increase stock levels of residential housing. ‘In London’s West End, there is a distinct shortage of residential property and at present, areas that are controlled by Camden Council have very strict planning procedures which apply to converting commercial premises into residential accommodation,’ he explained.

‘Currently, purchasers need to prove that the premises have not been a viable business premise for at least two years. This means two years of paying business rates, mortgage payments and bills for an empty building which produces no income. Any changes in planning regulations regarding commercial property conversions will increase the stock levels for residential housing,’ he added.

He said his company is currently working with a number of developers who are looking at office to residential conversions in prime areas which will make fantastic, ground breaking new homes.

‘Also, because of other planning conditions, developers will need to incorporate a mixture of affordable and social housing into their schemes. This will benefit people at all income levels and ease the soaring demand for residential accommodation in the area,’ he said.