Partner Article

Hopes for economy in planning relaxation measures

The Local Government Association has suggested it is “myth” that the planning system is to blame for the lack of new homes being built.

Research published today by the organisation revealed a backlog of 400,000 new homes which have received planning permission by have not yet been completed.

The suggestion comes as the Government announce their relaxation of planning regulations, in a bid to boost the economy.

A year-long relaxation on home extensions, shop and office expansion, and on developments having to include affordable housing, is hoped to provide a boost.

However, Sir Merrick Cockell, chairman of the LGA, said: “Even if planning departments did not receive another new home application for the next three years, there are sufficient approved developments ready to go to last until 2016 at the current rate of construction.

“Councils are also playing their part to unlock stalled sites by contributing land and assets, forming partnerships with developers and overwhelmingly saying ‘yes’ to growth through the planning system.

“To get Britain building again we need to address the lack of liquidity in the finance market and tackle the shortage of mortgages for struggling first time buyers. The planning system has been massively reformed under this government and it is clear that unlocking frustrated demand, not increasing supply, is now the most urgent problem in the housing market today.”

As part of the scheme, the Government have also reinvigorated the FirstBuy scheme, where first-time buyers without a deposit are given an equity loan of up to 20% of the purchase price.

David Orr, Chief Executive of the National Housing Federation, which represents England’s housing associations, says: “This stimulus package is a major step forward. The Government’s £10 billion financial guarantees, together with the extra £300 million for affordable and empty homes, has the potential to transform the housing market.

“It will provide homes for some of the millions of families on waiting lists, create jobs and give the UK economy a shot in the arm with a speed and effectiveness few industries can match. The only piece of the puzzle missing from this announcement is rapid access to public land.

“Government departments are sitting on parcels of previously developed public land equivalent of two cities the size of Leicester – this land needs to be made available so that housing associations can get cracking, build more homes at scale, boost the supply of affordable homes and create local jobs.”

Ian Baker, group managing director of home builders, Linden Homes, commented: “I’m pleased to see the government formally backing our housebuilding industry which is crucial if we are going to significantly boost the economy. Today’s announcement is a vital step in the right direction and what this country needs.

“It’s vital we have a planning system which encourages growth to not only provide much-needed new homes, but also to create a significant number of new jobs - providing huge social and economic benefits right across the country.

“What we would like to see now is a commitment to educating buyers that there is help available to them. Along with FirstBuy, the government’s NewBuy scheme is also available to all buyers across the country on homes up to £500,000.”

Simon Walker, Director General of the Institute of Directors, said: “We applaud the Government’s new reforms of the planning system. The construction industry has been suffering, we need more housing and businesses currently find it too difficult to build new premises, so action to relieve those problems is very welcome.

“Many companies want to invest and expand, and the system should be encouraging them to do so, not deterring them. The Government is right to revisit this area to take their reforms further. The key to their effectiveness will be in the implementation of the proposed arrangements. We urge the Government to keep open the possibility of a blanket holiday from costly section 106 requirements if necessary.”

This was posted in Bdaily's Members' News section by Tom Keighley .