Savills News

Planning White Paper - Planning for the Future

Robert Jenrick MP has launched the consultation on the Planning for the Future White Paper, which aims to reform the planning system to streamline the planning process and accelerate delivery of new homes.

There have been a series of reforms to the planning system announced in recent months as part of the Government’s drive to ‘Build Build Build.’ The changes announced in Planning for the Future in practice mean increased emphasis on ‘Plan, Plan Plan.’

David Jackson, Head of Planning at Savills, commented:

‘We welcome the Government’s emphasis on improving the delivery of housing in response to the shortfall in supply across the country.  Housing of course is a priority, but similar urgency exists in relation to the delivery of other forms of development to ensure a strong economic recovery and the transfer to a greener / low carbon economy.  A challenge with such radical reform is ensuring it is introduced in a way that minimises the risk of consequent delays in decision-making; both on major proposals and on the progress of emerging local plans.  In addition, these measures need to be supported by the necessary resources; both in terms of planning professionals deployed at local authority level and the necessary supporting investment in technology.  Government and local planning authorities need to support ‘plan, plan, plan’ in order to ‘build, build, build’’.   

Three Pillars

Setting out three pillars for the future of planning, the White Paper seeks to review how development is planned, bring a new focus to design and sustainability and reform how infrastructure associated with development is delivered. It proposes long-term structural changes to the planning system rather than more immediate amendments to existing processes.

Truly Zonal?

There is a move towards a zonal system with areas of England allocated as either Growth Areas, Renewal Areas or Protected Areas. Local Plans will be digitised, with increased emphasis on map-based planning to make development plans more accessible and reduce their length. The nature and process of public engagement will radically change, with increased emphasis on digitalisation of plans and method of engagement with increased interaction during plan-making.

The existing Local Plan system already allocates - zones - land for different types of development and in that regard the zoning system is not a substantial departure from the existing system.  Equally, plan policies typically promote good design and sustainable place-making, which will continue to be key themes going forward. What is radical is that once zoned it is assumed that the land designated has ‘permission in principle’ – a zoned system with no further controls.  A fundamental change to the existing system will take significant time and effort to become embedded by everyone involved, utilising a range of skill sets, and while a transitional period is indicated, it is not clear how long this would remain in place. Past experience suggests that change on this scale has a potential downside risk of causing delay in the delivery of new plans and in timely decision-making. The ability of local authorities to adopt new technology for consultation and plan production needs further understanding to ensure this is adequately resourced.

The End of S.106

Reform of planning contributions, including the abolition of CIL and Section 106 agreements is intended to accelerate the delivery of development whilst continuing to provide affordable housing. A new Infrastructure Levy will capture the land value uplift created by a planning approval, and use this to enhance infrastructure delivery. Affordable homes delivered on-site would be offset against the proposed Levy, with First Homes also incentivised this way and to be sold at a 30% minimum discount to market homes.

The principle behind CIL was that it would reduce the complexity of the Section 106 process.  Negotiating and agreeing Section 106 agreements, particularly on larger sites, remains a complex and challenging process post resolution and is a major cause of delay.  However, it does create a direct link between new development and the measures necessary to mitigate the effects of new proposals.  It remains to be seen how the new IL will similarly address this complex issue and ensure mitigation at a site level is adequately funded and infrastructure delivered at the time it is required. 

Housing Need & Supply

The reformed approach to land supply is intended to ensure enough land comes into the system over the Local Plan period – which will be reduced from 15 down to 10 years. A revised Standard Method will establish the housing requirement for an area and it will be the responsibility of local authorities to allocate sufficient land for housing. Adjoining authorities having the option to prepare plans on a joint basis and thereby agree an alternative distribution of their housing requirement. The Duty to Cooperate is removed in the White Paper, although there remains an unofficial duty for agreement across local authority boundaries to address pressure on areas of greatest need.

First Homes

First Homes are now clearly expected to take priority over other forms of affordable home ownership. For example, if a local plan required 30% of affordable housing to be shared ownership before, under the new rules it should require 25% First Homes and just 5% shared ownership. This could have a serious negative impact on the supply of new shared ownership homes. Lawrence Bowles, Savills research analyst comments ‘our modelling shows that shared ownership homes can offer people a route to home ownership with lower deposits and lower income requirements than First Homes. By restricting the supply of shared ownership, government risks raising the barriers to home ownership, not lowering them.’

Omissions

The focus seems to be on planning for the future of housing with lack of detail on how other development, such as renewable energy which will be critical to achieving net zero carbon emissions by 2050, will be considered.

The changes to planning contributions are quiet on the mechanism for delivering infrastructure such as schools and GP surgeries and it is unclear how local authorities should deliver infrastructure where values fall below the proposed threshold for the new Levy.

There is also no mention of delivering housing to rent, a significant recent contributor to meeting the range of England’s housing needs. 

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