Camilla Eason analyses the Prime Minister's speech on housing.

Prime Minister Theresa May has yesterday delivered a speech setting out a series of proposals that aim to reform planning rules. These will be consulted on over the next 8 weeks with a final version of the Government’s plan expected to be published in the summer.

Specifically, May announced a “major overhaul” to the National Planning Policy Framework which will aim to make the system fairer and more effective by cutting red tape and ending “barriers to building”. This includes measures to “maximise the use of land”, and “protections for the Green Belt and greater emphasis on converting planning permissions into homes”.

Her speech was underpinned by the assertion of the importance of adopting a holistic approach to delivering the new homes needed to meet the Government’s housebuilding targets. She stressed these would only be achieved as a result of cooperation between local councils, developers and planners. She said the Government was “rewriting the rules on planning” to help developers and local authorities build more homes.

Of particular interest, she said the Government’s new planning rules would stop developers building on sites “not allocated in local plans” and end abuse of the “viability assessment” process, making it “harder for unscrupulous developers to dodge their obligation” of building affordable houses.

She also stressed it was time for builders and developers to “step up and do their bit”, referring to the bonuses paid to the heads of developers which are not “based on the number of homes built but on profits”, creating a “perverse incentive” in the current market where “lower supply equals higher prices”.

Following her speech, the Government released the consultations mentioned. These include:

• One on reforming developer contributions to affordable housing which follows the announcement at the Budget 2017, and;
• Another on the infrastructure and text of the National Planning Policy Framework which implements around 80 of the proposals set out in the Housing White Paper.

Of interest, the consultation includes the housing White Paper proposal that at least 10% of homes on major sites should be available for affordable home ownership, unless “this would exceed the level of affordable housing required in the area, or significantly prejudice the ability to meet the identified affordable housing needs or specific groups”. How this will be balanced with the targets of local councils seeking to prioritise social housing remains to be seen, and this could well be a sticking point in future.

Today’s announcement includes reforms to the following areas:

Greater responsibility

• Local authorities will be subject to a new housing delivery test. This will be focused on driving up the numbers of homes delivered in their area rather than the numbers planned for.
• Developers will be held to account for delivering housing commitments. This includes affordable housing and pledges regarding local infrastructure.

Maximising the use of land

• The Government will give local authorities greater freedom to “make the most” of brownfield sites to build homes in order to maximise density.
• Redundant land will be encouraged to turn into utilised retail or industrial space for homes. There will be more flexibilities to extend upwards on existing blocks of flats houses, shops and offices.

Maintaining strong protections for the environment

• The Government will look to ensure developments result in a net gain to the environment where possible.
• There will be increased protection to ancient woodland.

Ensuring the right homes are built

• The Government will look to deliver more affordable homes that meet the housing needs of everyone wherever they stand in life.
• These include sites dedicated for first time buyers, build to rent homes with family friendly tenancies, guaranteed affordable homes for key works and adapted homes for older people.
• The Government will adopt a standardised approach to assessing housing need. Details of this are expected to be published later this week.

Higher quality and design

• The Government will introduce new quality standards. No further information has been given.

More transparent planning process

• The Government will encourage local authorities to work together to close the gap between planning permissions granted and homes built.
• The Government will introduce measures to make the system of developer contributions clearer and more robust, so  “developers understand what’s expected of them” and that councils will “hold them to their commitments”.

On the issue of agricultural land, the Government said it would look at measures to support farm diversification, housing and local business in the rural economy.