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10/05/2021

Call For New Council Powers To Accelerate Housing Delivery

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The Local Government Association (LGA) has called for a Planning Bill in the Queen's Speech to confer fresh powers to councils after new analysis reveals that more than 1.1 million homes granted planning permission are yet to be built.

Latest figures show that 2,782,300 homes have been granted planning permission by councils since 2010/11, while over the same period 1,627,730 have been built to completion.

The powers suggested by the LGA include legislation that would enable councils to charge developers full council tax for every unbuilt development from the point the original planning permission expires, and compulsory purchase powers to acquire sites where developers fail to build out to contractually agreed timescales.

Cllr David Renard, LGA housing spokesperson said: "Councils are committed to working with government and developers to build the housing the country needs.
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"It is good the number of homes built each year is increasing. But by giving councils the right powers to incentivise developers to get building once planning permission has been granted, we can go further and faster."

While completions are at their highest level in the last 10 years (220,600), this still leaves a deficit of 79,400 against the Government’s housebuilding commitments. The LGA said that the inability to meet national housing targets justifies reform of the delivery system.

Joshua Carson, Head of Policy at advisory firm Blackstock Consulting, raises concerns with LGA's recommendations: "The compulsory purchase and council tax powers proposed by the LGA would be unduly antagonistic towards the housebuilding industry, which relies on enduring co-operation with councils to achieve a consistent supply of new homes.

"The notion of developers 'sitting on planning permissions' has been taken out of context. It takes a considerable length of time to agree the provision of new infrastructure on strategic sites for housing and extensive negotiation with councils to discharge planning conditions before homes can be built."

While the LGA identifies a substantial number of sites with planning permission waiting to be built out there are other reasons why housing delivery can be stalled.

Material amendments made to consented applications to meet new regulatory requirements often mean that developers and housing promoters must revert to planning committees for a revised decision.

Council design codes and expectations on financial contributions to local community also change, which further delay the delivery of new homes. Compulsory purchase orders regularly opposed, prolonging their determination at a cost to the taxpayer, and require legal counsel to navigate.

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