Government comments spark industry backlash
The Government has unveiled a set of proposed rules which will call on housebuilders to commit to delivery timeframes before planning permission, and submit annual reports to councils detailing their progress on site.
The rules also state that developers who do not build out consented sites, or “secure planning permissions simply to trade land speculatively” could face a penalty, paid directly to local authorities.
MHCLG also said that: “Those deliberately sitting on vital land, without building the homes promised, could see their sites acquired by councils where there is a case in the public interest and stripped of future planning permissions, showing the government’s Plan for Change means business to deliver 1.5 million new homes.
“Large housing sites, producing over 2,000 homes, can take at least 14 years to build, meaning working families and young people spend years deprived of homeownership or the ability to rent an affordable home.
“But where more than 40% of homes are affordable, build-out is twice as fast. The government is therefore also testing a new requirement for large sites to be mixed tenure by default – helping to build more homes, including more affordable homes, faster.”
Deputy Prime Minister and Housing Secretary Angela Rayner added: “This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. In the name of delivering security for working people, we are backing the builders not the blockers. Now it’s time for developers to roll up their sleeves and play their part.”
However, the industry has responded harshly, with the indication that housebuilders are purposefully blocking progress on site being widely scorned.
Neil Jefferson, Chief Executive Officer at the Home Builders Federation, said: “Numerous independent reviews have concluded that home builders do not delay build out, not least the CMA’s Market Study, published only last year. The reality is that developers only see a return on investment when they sell homes. Having purchased land and navigated the costly and bureaucratic planning process, there is no reason at all not to build and sell homes.
“If we are to tackle the housing crisis ministers need to focus on the actual reasons as to why housebuilding levels are flat lining that have largely been ignored – the lack of government support for first time buyers that is suppressing demand and the dearth of housing associations in the market for affordable homes. Whilst the planning changes announced last year and the government’s ambition are very welcome, much more is needed if we are to get anywhere near the challenging target it has set.”
The consultation ends on 07 July.
Government acts to support SME developers
In the wake of this backlash, the Government also announced proposals to support small developers to overcome the wide range of challenges faced when constructing new homes.
Biodiversity Net Gain requirements are planned to be eased, as well as an exemption from the Building Safety Levy for sites between ten and 49 homes.
Homes England will also release more of its land exclusively to SME developers.
Smaller housebuilders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited – and get working people on the housing ladder.
Angela Rayner, Deputy Prime Minister and Housing Secretary
Housing View 