Boris Johnson has announced [30 June] what the government is calling the most radical reforms to the planning system since the end of the Second World War, making it easier to build better homes where people want to live.
New regulations will give greater freedom for buildings and land in town centres to change use without planning permission and create new homes from the regeneration of vacant and redundant buildings.
Under the new rules, existing commercial properties, including newly vacant shops, can be converted into residential housing more easily, in a move to kick start the construction industry and speed up rebuilding. The changes include:
- More types of commercial premises having total flexibility to be repurposed through reform of the Use Classes Order. A building used for retail, for instance, would be able to be permanently used as a café or office without requiring a planning application and local authority approval. Pubs, libraries, village shops and other types of uses essential to the lifeblood of communities will not be covered by these flexibilities.
- A wider range of commercial buildings will be allowed to change to residential use without the need for a planning application.
- Builders will no longer need a normal planning application to demolish and rebuild vacant and redundant residential and commercial buildings if they are rebuilt as homes.
- Property owners will be able to build additional space above their properties via a fast track approval process, subject to neighbour consultation.
These changes, which are due to come into effect by September, through changes to the law, will both support the high street revival by allowing empty commercial properties to be quickly repurposed, and reduce the pressure to build on green field land by making brownfield development easier. Developers will still need to adhere to high standards and regulations, just without the unnecessary red tape.
The Prime Minister also announced that work will begin to look at how land owned by the government can be managed more effectively.
Ahead of the Spending Review, a new, ambitious cross-government strategy will look at how public sector land can be managed and released, so it can be put to better use. This would include home building, improving the environment, contributing to net zero goals and injecting growth opportunities into communities across the country.
These announcements come alongside a package of measures to support home building across England. These include:
- A £12 billion affordable homes programme that will support up to 180,000 new affordable homes for ownership and rent over the next eight years [confirmed on 30 June].
- Included in the affordable homes programme will be a 1,500 unit pilot of ‘First Homes’: houses that will be sold to first time buyers at a 30% discount, which will remain in perpetuity, keeping them affordable for generations of families to own.
- Funds from the £400 million Brownfield Land Fund have [confirmed on 30 June] been allocated to the West Midlands, Greater Manchester, West Yorkshire, Liverpool City Region, Sheffield City Region, and North of Tyne and Tees Valley to support around 24,000 homes.
- The Home Builders Fund to help smaller developers access finance for new housing developments will receive an additional £450 million boost. This is expected to support the delivery of around 7,200 new homes.
Also announced is the launch of a planning Policy Paper in July 2020, which will set out a plan for comprehensive reform of England’s seven-decade old planning system, to introduce a new approach that works better for the modern economy and society.
Later this year, the government will also bring forward a Local Recovery White Paper, detailing how the UK government will partner with places across the UK to build a sustainable economic recovery, launch the National Infrastructure Plan and legislate for wider de-regulatory reforms.
Build, build, build… the industry responds
The Prime Minister’s speech on using construction to revive the economy has been largely welcomed by industry representatives.
James Talman, chief executive of the NFRC, believes that whilst the Prime Minister has laid the foundations for recovery, more substance is needed to finish the job. He said: “The Prime Minister’s vision to build back better, faster and greener, will be welcomed across the construction industry. Roofers have been calling for certainty over future work and support to retain apprentices and jobs, and this announcement will help to provide that.
“The Prime Minister’s rhetoric must be now followed up with delivery. We have been calling for the school Condition Improvement Fund to be released, and after months of delay, are delighted that this has now happened. That being said, we are still hearing of Local Authorities delaying projects, and this is having a real impact on roofing contractors. Project Speed should apply to all public sector work, not just high-profile infrastructure schemes.”
James concluded: “What is needed now is not just fast-tracking of current projects and funding, but incentivising future investment. Speed is one thing, but we also need substance. The government should now look to tax incentives to encourage investment.”
Meanwhile, planning reforms and an apprenticeship guarantee are welcome policies for the construction industry, but building back greener is not possible without investing in insulating our homes, said the Federation of Master Builders (FMB) in response to the prime minister’s statement.
Local builders and building contractors are the foundation of the construction industry and employ hundreds of thousands of people across the UK. Boosting activity in this sector through a national energy efficiency retrofit strategy will help provide local growth.
Brian Berry, chief executive of the FMB, said: “A complex planning system hampers the ability of small to medium-sized (SME) house builders to bring forward new homes. I therefore welcome the Prime Minister’s statement of intent to radically reform this process. Builders have been concerned for years that the planning system needs updating so as to alleviate workloads for stretched departments, but also to speed up decisions. More money for the Home Builders Fund is positive, but this must now be open to micro builders delivering five homes or fewer, often on small brownfield sites. The apprenticeship guarantee will be vital in construction where we have been experiencing a skills shortage for many years.”
Brian continued: “It is not possible to ‘build back greener’ and better without upgrading our existing buildings, however. Heating our homes accounts for 20% of total UK carbon emissions, and these buildings must be insulated as soon as possible to achieve net zero by 2050. This programme of work will also help to boost activity in the repair and maintenance building sector which has seen workload, employment levels and enquiries all fall to historic lows this year. These firms employ hundreds of thousands of people, and SMEs train 71% of apprentices in construction. They are key to the levelling up agenda and boosting regional growth.”
Reacting to the Prime Minister’s “New Deal” for Britain speech, the Builders Merchants Federation (BMF) gave it a qualified thumbs up.
John Newcomb, chief executive officer of the BMF, welcomed the commitment to creating jobs, skills and infrastructure, as the government looks to build the UK back to economic health in the aftermath of the COVID-19 crisis, but noted that a full programme of national renewal must also promote better housing – both building new homes and upgrading existing ones.
John said: “It is great to see a Prime Minister responding to the COVID-19 crisis by promising to build back better, greener and faster, and by understanding the very real need to get the millions of people working in construction and building trades – including apprentices – back to work. In this regard, we are pleased to see the Construction Leadership Council’s Road to Recovery plan reflected in his speech.
“Reforming the planning system is long overdue and changes that speed up the system and enable redundant buildings to become new homes are certainly welcome. While some elements have been announced, we will need to see the detail in the promised planning Policy Paper in July.
“With regard to new housing, the building materials supply chain has often heard ministers talk a good game without the necessary political and managerial drive needed to build housing of all types and tenures through to completion.
“And, while we have heard that the government will publish a National Infrastructure Strategy in the Autumn, we also need a firm commitment to level up existing housing in every region through a National Retrofit Strategy.”
John concluded: “Our ask of Boris is to help SME builders and allied trades to return to the market and do what they do best. Build small numbers of homes, in many locations, in keeping with their surroundings, that voters want to buy. And undertake the RMI that many UK homes still desperately need to provide warm and secure accommodation. All in all, to boost the number of greener, faster, better homes that the country needs.”
