Housing secretary Robert Jenrick has revealed “landmark” reforms to the planning system, with the introduction of zoning, new developer levies and a requirement for new local plans.
New zoning measures will see land designated into one of three categories, for “growth” with automatic outline approval, “renewal” with a planning in principle assumption in favour of development, and “protected” land where development is restricted, such as the green belt.
The categorisation of land will be defined in local plans, with growth areas expected to include land suitable for large-scale development, including new settlements and urban extensions, areas for redevelopment such as former industrial sites, and growth clusters around business hubs.
Decisions over green belt allocations will remain with local authorities, which will have 30 months to put a new slimmed down local plan in place. The government will also consult on new measures to assess housing need.
Section 106 affordable housing and community infrastructure levy payments will be replaced with a new infrastructure levy based on the final value of a development. This would also apply to change of use via permitted development. It would be paid upon completion and occupation, with local authority able to borrow against the levy to help forward fund development.
This will see a fixed proportion of the value of a development, above a set threshold, designated to affordable housing. Payments will provide discounted homes for local, first-time buyers as the government kick-starts the First Homes initiative, as well as backing new roads and upgraded playgrounds.
The housing scheme will provide new build homes at 30% discount to local people, key workers and first-time buyers. It follows the Starter Homes initiative, which aimed to provide a 20% discount to first-time buyers but after £174m spent failed to deliver a single home.
Plans would see small sites exempt from the payments and the permission in principle provided to major developments to create a fast-track route for housing development.
There will be also be fast-track system for beautiful building for developers and all homes must be carbon-neutral by 2050.
Detail of the reform are published in the Planning for the Future white paper, which has been developed with a taskforce comprising Bridget Rosewell, Miles Gibson, Stuart Lipton, Nicholas Boys Smith and Christopher Katkowski.
The government has launched a 12-week consultation, with a call for evidence over proposals to allow better understanding of who controls land and to help developers identify land for development.
The reform to the planning system has been long awaited, following promises from the government to “cut the red tape” of the current system.
Jenrick said: “Our reforms will create thousands of jobs, lessen the dominance of big builders in the system, providing a major boost for small building companies across the country.
“We will cut red tape, but not standards, placing a higher regard on quality, design and the environment than ever before. Planning decisions will be simple and transparent, with local democracy at the heart of the process.”
Melanie Leech, chief executive of the British Property Federation, said the system was in need of reform and simplification had the potential to accelerate development and investment.
But she added: “The proposed reforms would however frontload the system, with more pressure on local authorities to provide leadership, vision and context for investors, developers and their communities.
“While this is right and vital, local authorities are under pressure like never before with the impact of Covid-19 and they will need significant support and resource to achieve these ambitions set out today – to ensure pace of delivery is equally complemented by quality, where new development will contribute to our country’s economic, social and environmental objectives.”
Leech warned that funding for the planning system had been cut by 55% over the past decade, while housing targets had been raised by 50%. She said: “These reforms must close this gap.”
Victoria Hills, chief executive of the Royal Town Planning Institute, added: “There are some major propositions contained within the document that will not only require the government to work hand-in-hand with the planning profession to implement, but will also demand some serious resourcing.
“It is, however, extremely encouraging to see recognition in the proposals of the importance of a local plan, community engagement and a plan-led approach.”
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