MHCLG also publishes consultation paper on plans to delegate most planning approvals to council officers
The government has announced plans for simpler planning rules for homes on smaller sites in a bid to boost the SME housebuilding sector.
In the latest in a flurry of announcements this week, the Ministry for Housing, Communities and Local Government (MHCLG) published a new working paper on planning thresholds for small and medium sites.
The government is proposing that ‘minor’ developments of up to nine homes benefit from streamlined planning. It is also proposing a new ‘medium’ category of sites between 10 and 49 homes which will benefit from simpler planning and an exemption from the governments forthcoming £3.4bn building safety levy.
The government’s planning reform working paper on site thresholds said that while smaller sites have some reduced requirements, such as being exempt from affordable housing and not having to provide a design and access statement, these are “limited in scope”.
“Beyond this – there is little difference between how planning applications for 10 homes are treated in the system compared to those for 100 homes or 1,000,” it said.
“This creates additional risk and uncertainty for SMEs, alongside upfront costs and delays to the process, which can be harder for smaller housebuilders to absorb.”
MHCLG said it is exploring moving to a more proportionate planning system offering a more “gradated approach”, with clearer categories of development, allowing more “sophisticated and targeted approaches to government policy”. It is looking to reduce validation requirements on smaller sites and retaining shorter timeframes for determining schemes.
MHCLG has also published a launched a consultation reviewing Biodiversity Net Gain rules for minor, medium and brownfield development. It is including looking at the option of a full exemption for minor sites.
The government is looking to exempt medium sites from the build out transparency proposals – in which housebuilders have to build out schemes to agreed timeframes or potentially face fines.
It will look at minimising validation and statutory information requirements, ensuring referrals to statutory consultees are proportionate and allowing a landowner or developer to test for the principle of development particular site without the burden of preparing an application for planning permission.
MHCLG has also published a consultation paper on its plans for reforming planning committees using powers in the Planning and Infrastructure Bill.
It is proposing that elected councillors only focus on larger developments, with smaller schemes being determined by officers in accordance with a local authority’s local plan and national policy.
Applications will be divided into two tiers, A and B. Applications in tier A, including all schemes of up to nine units would always be delegated to officers. MHCLG said some ‘medium’ schemes of between 10 and 49 homes could also be included in tier A but the consultation paper is asking feedback on what types of applications should be included.
The government also announced a £100m in SME accelerator loans, £10m for councils to fund more specialists to speed up environmental assessments and a £1.2m Proptech Innovation Fund to “support innovation in small site delivery”.
>> See also: ‘Housebuilders do not sit on land’ – HBF hits back at Rayner’s plan for slow build-out fines
Angela Rayner, deputy prime minister and housing secretary, said: ”Smaller housebuilders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited – and get working people on the housing ladder.
“For decades the status quo has failed them and it’s time to level the playing field.
“Today we’re taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.”
The proposals follows policies announced at the weekend to speed up development on sites with planning permission, including financial penalties for housebuilders who fail to build homes to agreed timetables.
Sector reaction round-up
Rachael Williamson, director of policy, communication and external affairs at the Chartered Institute of Housing (CIH) said: “We welcome [today’s] announcement as an important step toward unlocking the potential of smaller housebuilders to help tackle the housing crisis. Reducing red tape, providing better access to land and finance, and streamlining planning processes will empower SMEs to contribute more to meeting housing need, creating jobs, and revitalising local economies.”
Melanie Leech, chief executive, British Property Federation, said: “We are pleased to see Government considering targeted exemptions from the Building Safety Levy and Biodiversity Net Gain requirements. We recognise the Likewise, the potential for smaller-scale schemes to be determined by planning officers will free up planning committee time, allowing council decision-makers more time to focus on larger, more complex planning applications, hopefully leading to better decisions.”
Jeremy Gray, head of external affairs at the Federation of Master Builders, said: “This is a big change for the planning system and one that acknowledges the hardships faced by SME house builders over the last few decades, which have resulted in their decline. The UK’s small house builders stand ready to deliver the homes Britain needs, but the planning system has stifled their growth.”
Paul Rickard, chief executive, Pocket Living, said: “For the first time in many years, we’re seeing clear signals that an administration recognises the critical role SME housebuilders play in tackling the housing crisis. We’re delighted to see several of the recommendations we’ve worked with the Government on reflected in today’s announcements.”
Jon Di Stefano, chief executive of Greencore Homes, said: “Simplifying the planning process and introducing more targeted land and funding opportunities for SME housebuilders should have a transformative effect for housing delivery, not just in terms of volume but quality and sustainability too.”
Richard Beresford, chief executive of the National Federation of Builders, said: “By acknowledging that many SMEs build on sites of between 10 and 50, the ‘Medium’ sized site definition creates an opportunity to help them directly. This is the strategic step that SMEs desperately needed, and we thank the government for working with and listening to industry.”
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