Conservative Party Conference Property and Planning Announcements

There will be a lot in these proposals that resonates with the development industry. The cost and complexity of bringing forward housing has increased significantly, and there is no doubt that issues such as lengthy Section 106 negotiations and increasingly complex environmental requirements add both cost and delay.

The key question, however, is whether the proposals would actually make development quicker and more viable in practice. Abolishing Natural England and the Environment Agency would be a significant change, but many of the requirements developers have to address arise from the underlying legislation. If those requirements remain, transferring responsibility to Defra will not necessarily remove the delays our clients currently experience.

Similarly, there is certainly scope to simplify Section 106 and CIL. We regularly see schemes secure a resolution to grant planning permission but then spend many months negotiating the s106 agreement before a permission is actually issued. A simpler and more predictable system could therefore make a real difference, although it would still need sufficient flexibility to deal with affordable housing, infrastructure requirements and scheme viability.

The suggested £50,000 saving is obviously an eye-catching figure, although a reduction in the cost of building a home wouldn’t necessarily translate directly into the same reduction in its sale price. The potentially more significant benefit is that lower development costs could improve viability of sites and help more consented schemes move into delivery.

Ultimately, that’s probably the most important test of any reform. It’s whether it gives developers greater certainty, reduces unnecessary delay and results in more homes actually being built.