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Rayner my parade! The importance of specialist advice.
Jemma Brimblecombe
Here we seek to cut through the manifesto jargon and highlight the key themes of housing policies from the Labour Party, Conservative party, Liberal Democrats and the Green party.
Planning reform is a hot topic. The Labour Party have pledged to update the national policy planning framework and fund additional planning officers to address the backlog and delay in processing applications. Labour have also proposed a package of devolved powers to local authorities and mayors to enable strategic and targeted use of funding for housing in local areas where it is needed.
Meanwhile the Conservatives have proposed a fast track route through the planning system for new homes on previously developed land in the 20 largest cities. Aiming to raise density levels of housing in inner city London to that of cities such as Paris and Barcelona. The Conservative party also pledge to enforce councils to set aside land for local small builders and to lift Section 106 requirements. They have also proposed to scrap EU ‘nutrient neutrality’ rules on the condition of developers paying a one-off mitigation fee.
The Liberal Democrats have pledged to expand neighbourhood planning across the country with a focus on funding local planning departments to improve planning outcomes. The Lib Dems also pledge to introduce a system of “use it or lose it” planning permissions and wish to create a new planning class for second homes and short term lets.
The Green Party have also pledged to transform the planning system to reduce the environmental impact of construction and ensure that new developments are supported by suitable social infrastructure.
Tom Beak: “our developer clients are certainly welcoming of planning reform – inconsistencies and delays in planning decisions, together with regular turnover of planning officers can create financial nightmares. However, wholesale legal reforms can create more problems than they solve, particularly when the legislation is rushed – so we would hope that any reforms involve consultation with the end user. In the interim, investment in planning generally to increase the numbers and train officers would go some way to assisting developers. SME Developers have also expressed interest in increased devolution – properly incentivised devolution of planning powers can ensure that planning decisions are not simply about hitting targets but have a genuine placemaking approach, allowing house building to be better tailored to location and local need.”
The Labour Party have pledged to prioritise development on brownfield land (previously developed land that is no longer being used, often involving contamination risk due to previous industrial use), however the party has acknowledged that there are not enough brownfield sites to meet current housing needs. Coined “greybelt’ land, Labour plans to release low quality neglected greenbelt land such as derelict buildings, car parks and wastelands to help achieve house building targets. This would involve a more scrutinous and strategic approach to the designation of greenbelt land. Knight Frank previously identified over 11,000 previously developed sites making up less than 1% of the greenbelt.
Meanwhile, in direct opposition of Labour’s proposal, the Conservative Party have pledged to maintain national planning protections for greenbelt land and protect the land from “uncontrolled” development.
The Liberal Democrats have proposed rural exception sites. These are sites on the edge of current rural developments with the purpose of providing affordable housing for local residents so they do not have to move out of the area.
The Green Party have been vocal about protecting the green belt and preventing development on this land.
Tom Beak: “Greenbelt building has always been contentious, but perhaps the housing crisis is at a stage where this luxury can no longer be afforded. The attitude to date, perhaps understandably, has been “not on my doorstep, thank you” but with modern construction and design, appropriate Section 106 measures and a focus on currently unused areas, controlled greenbelt building can add value, expanding and developing commuter towns rather than adding eyesores to the belt.
We have certainly seen more appetite from investors and developers to purchase and build on brownfield sites – it is certainly a growing market and a solution to bring life back into disused land, rather than decrease the recreational areas of the greenbelt.”
The Green Party are campaigning to change Building Regulations so that all new homes meet “Passivhaus” equivalent standards (a international design standard originating from Germany which is regarded as a gold standard in energy efficiency) including requirements for housebuilders to include solar panels and low carbon heating systems. The Green Party also wish to upgrade the minimum energy efficiency standard for new homes (“MEES”) to a rating of C (the current minimum is E). The Green Party also focuses on investing in insulating homes and public buildings such as schools and hospitals and to invest in funding to adapt homes that are at risk of overheating in the summer months.
The Liberal Democrat party have proposed a 10-year emergency upgrade programme to ensure that all new homes are zero-carbon, warmer and cheaper to heat, driving a ‘rooftop solar revolution’. The Lib Dems have also pledged to ensure that new developments result in a net gain for biodiversity.
As part of their housing proposals, the Labour Party have also committed to ensuring high quality and sustainable homes are built that are resilient to climate change.
The Conservative Party have stated that will continue to deliver green development in line with the introduction of the Environment Act.
Tom Beak: “there is no getting away from the fact that climate change is now intertwined with Property Law and construction. Far from increased energy standards and stricter requirements reducing investment, we are seeing builders and investors pre-empting future requirements and demanding higher standards in new builds than are currently required by law. However, away from the construction of new buildings, if political parties want to improve existing residential buildings, individuals will need to be properly incentivised (e.g. tax breaks or government contributions to environmentally friendly alterations).
Both the Liberal Democrat and Green Party have emphasised for large scale developments to be supported by new infrastructure, public services and amenities such as GP surgeries, nurseries, schools, bus services and cycle lanes.
Outside of London, Labour have pledged to create a new generation of towns, harking back to the 1945 Labour government to form a series of new large-scale communities across the country. The Conservative Party have focused on urban regeneration with new quarters in Leeds, Liverpool, York and Cambridge. Whereas, the Liberal Democrats have proposed ten new garden cities across the UK, with emphasis on community led development.
Tom Beak: “it is clear from the various manifesto pledges that the existence of a housing crisis is universally accepted. The parties may differ in their solutions, the emphasis they place on the environment or the exact number of houses promised, but the one constant is (somewhat unsurprisingly in an election campaign) – new homes are coming. To ensure that targets are not just kept but lead to a sustainable solution, whoever steps into No.10 on 5 July should utilise a wealth of SME developers to solve the crisis – spreading government contracts and funding between national builders and SME developers not only decreases public expenditure risk and invites variety, but introduces the benefit of local knowledge and a focus on genuine place making with the suggestion that this creates more attractive and affordable living options, helping to attract people to other cities away from London.
Planning reforms will play a vital role in achieving any housing targets – reducing delays and increasing collaboration between builder and planning officer will decrease the financial risk involved for SME developers, allowing them to deliver more homes.
Images of a rain-soaked PM announcing the election is a distant memory, but the election is now imminent. The forecasters and opinion polls suggest that the safe money is on a change of government and that seems to be a popular bet (not wishing to prejudice any on-going investigations of course!), but behind the campaign slogans and manifesto pledges, is a genuine opportunity to tackle the housing crisis and produce sustainable, place-focussed homes across the country.”
Kingsley Napley does not endorse any political party.
If you have any questions about any of the issues covered in this blog, please contact Lucy Reast or Tom Beak or a member of our Real Estate and Construction team.
Lucy is a trainee solicitor at Kingsley Napley and is currently sitting in Real East and Construction as her second seat. Lucy’s current work involves assisting with both residential and commercial property transactions.
Tom is a Senior Associate in our Real East and Construction team and is experienced in a range of commercial and residential property matters. Tom acts for property investors, developers, lenders, landlords and tenants
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
Jemma Brimblecombe
Charles Richardson
Oliver Oldman
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