The planning system needs to take viability more seriously

By Paul Smith 2026-09-09T06:00:00

Paul Smith Strategic Land Group-Photoroom 1

Residential development is unviable in nearly half of England. Government must either reduce build costs by removing regulation or subsidise development from the public purse, argues Paul Smith

There is no point in a local plan that isn’t deliverable.

The viability of residential development, long taken for granted, is becoming increasingly challenged – and that puts the deliverability of plans at risk. Construction costs are some 38% higher than in January 2019 – an increase that has not been off-set by commensurate increases in house prices.

Zoopla reports that residential development is now unviable in 48% of England. The picture in some regions is even worse – Zoopla’s data shows that just 13% of the Midlands has selling prices at a level where it makes financial sense to build new homes.

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