Planning

The ODPM has released four documents addressing two key aims: to make the planning system respond better to market demand for homes; and to ensure more first-time buyers can afford homes of their own. The documents are: Consultation paper on planning for housing provision, draft Green belt direction, Planning obligations circular, and Study on value for money of delivering affordable housing through Section 106.

Planning for housing provision

Following Kate Barker’s report into housing supply, the government is consulting on changes to the planning system to take into account house prices and market demand when deciding what level of housebuilding is necessary.

The consultation paper sets out the government’s objectives for delivering a better supply of housing through the planning system. It wants councils to plan for a 15-year time frame with a rolling five-year supply of appropriate land. The consultation also looks at reviewing regional plans when there are changes in housing market conditions while continuing to focus on brownfield sites for development.

This consultation will feed into the review of PPG3 , which will result in the autumn publication of a consultation draft PPS3 setting out national policy for housing.

Green belt direction

The draft Green belt direction sets out three options, but the government’s preferred choice would require that applications for certain developments in the green belt, which local authorities are minded to approve, be referred to the ODPM. The proposed thresholds for referral are any building(s) with a floor area of more than 1000 m2, or any other development that would have a significant impact on the openness of the green belt.

Planning obligations circular

The system of planning obligations is important in delivering essential infrastructure required as part of new development proposals. However, many feel that planning obligations have been responsible for delays in the system. Circular 05/05 (replacing 01/97) tries to speed up the system and support the delivery of development, including new housing. Crucially, the circular still keeps the five key tests that obligations should meet.

The aims of the new circular are to increase transparency, predictability, accountability and speed in the negotiation of planning obligations, and promote good practice. Measures aimed at achieving this include drawing up codes of practice, having standard charges, and the use of third parties to assist with negotiations for major projects. It also brings obligations into line with the Planning & Compulsory Purchase Act 2004.

The issue of obligations being seen as buying a permission has also been tackled, with proposals aimed at increasing transparency, including recommending that heads of terms are included on committee reports, making sure they are negotiated in open and that the public can examine proposed and existing agreements.

The circular will be supported by the publication of good practice guidance on the use of planning obligations later this year, which will include a standard legal document for planning agreements and unilateral undertakings. The government also continues to examine Kate Barker’s recommendations for a planning gain supplement and will announce its response by the end of the year.

Delivering affordable housing through Section 106

The ODPM has also published research on the value for money of delivering affordable housing through S106 agreements.

This research confirms the importance of using planning obligations in delivering affordable housing and indicates that as developers and local authorities are becoming more familiar with using planning obligations, the system is improving. The study also found that delivering affordable housing in this way makes a valuable contribution to the government’s aim of encouraging mixed communities, in particular by providing access to land in high-value areas.

However, the research suggests there is room for improvement. The main drawbacks of the current system are perceived to be delays in negotiation and resulting costs.

These measures are clearly designed to help deliver more housing, while at the same time addressing concerns that are often raised from people fearing that the green belt will be put under pressure and that infrastructure will be stretched.

Key points to watch out for will be the publication of the draft PPS3 Housing, the government’s response to the Barker recommendations on planning gain supplements and the good practice guidance with model document on planning obligations, all due later this year.