Showing posts with label building. Show all posts
Showing posts with label building. Show all posts

Tuesday, 26 July 2011

[insert planning related pun here]

As the Guardian pointed out today, there is just too much news at the moment. Too many tragedies, unfolding economic disasters, and environmental catastrophes, as much of the deluge of news is bad. Something that hasn't had much coverage, however, is the draft National Planning Policy Framework issued yesterday. I can see why it hasn't been afforded a lot of notice, but this document is very important indeed. It will have a vast influence on how the UK's built environment changes, or does not, over the next few years.

One of the government's stated aims for CLG has always been to simplify the planning system. Ministers decry the huge volume of planning guidance, which runs to thousands of pages and represents to them so much red tape. This is to be replaced by a single National Planning Policy Framework, which will set out simply how the government wants planning to work. Everything else will be delegated to local and/or neighbourhood level, regions having been abolished. Rationalising reams of guidance on a large number of specific issues (for example, transport, flood risk, and telecommunications) into a single, simple document was never going to be an easy task. This explains why the national framework has been repeatedly delayed.

Now we finally have it, and it runs to a mere fifty-three pages plus glossary. This is certainly much more convenient than all that it replaces, and students of planning law will be delighted to find their reading lists reduced in such a radical manner. The framework provides a neat summary of the issues that 21st century planning has to grapple with. (With the exception of gypsies and travellers, who aren't mentioned at all. Presumably acknowledging them was considered too contentious, and their needs were assumed to be tacitly included in planning for housing requirements.) For the most part, existing guidance is rationalised, for example the flood risk and retail policies. However, there are also some very significant changes. In short, NIMBYs beware, you're in for a scare.

The primary role of the planning system is now explicitly to deliver sustainable development, defined as meeting economic, social, and environmental needs without compromising the ability of future generations to meet their needs. The long-promised 'presumption in favour of sustainable development' is set out, and rather heavy-handedly the following is added, 'significant weight should be placed on the need to support economic growth through the planning system'. It could be argued that this turns the role of the planning system from plan-making to getting out of the way.

The government harps on about increasing people's control of planning, but this presumption will do the opposite. Councillors would find it very difficult to refuse planning applications, and even harder to win appeals against refusals. When your local plan is outdated, refusing an application would only be possible if 'the adverse impacts of allowing development would significantly and demonstrably outweigh the benefits, when assessed against the policies in this Framework taken as a whole'. More significantly, even if an up-to-date plan is in place, the presumption in favour of sustainable development still applies and must be taken into account. Neighbourhood plans will not be able to block development, only to propose more of it. The whole system is being reweighted in favour of planning applicants.

Local plans will also need to be based on objectively assessed needs, requiring 'proportionate' and integrated evidence on housing, economic development, infrastructure, and the environment. It is significant that the last goverment's housing targets were below the assessed housing need. Also, the housing section of the framework flatly states that, 'The Government's key housing objective is to increase significantly the delivery of new homes.' This is reinforced by the further statement that, 'Local Plans should be prepared on the basis that objectively assessed development needs should be met, unless the adverse impacts of doing so would significantly and demonstrably outweigh the benefits.' Ergo, more housing development, especially in places with poor affordability.

I don't want to give the idea that the new planning world will be a complete free-for-all. Local plans will still be able to specify restrictions on how land is used or whether it is developed, as long as there is evidence to support this. How much of a free-for-all actually ensues will depend on how these two adjacent clauses are balanced in practise:

'The planning system is plan-led. Therefore Local Plans, incorporating neighbourhood plans where relevant, are the starting point for the determination of any planning application.

'In assessing and determining development proposals, local planning authorities should apply the presumption in favour of sustainable development.'


That is where planning lawyers will be spending many billable hours in years to come.

Meanwhile, allocations of land in Local Plans will need to be viable and deliverable, whereas currently they merely have to be deliverable. I think this terminology change means that local planning authorities will have a harder time getting financial contributions from developers - when those contributions are subject to viability. To get technical for a moment, the Community Infrastructure Levy (when implemented) is like a tax on development and developers cannot negotiate it down if their development seems less profitable. However, the proportion of affordable housing in a housing development is subject to viability, and where the line is drawn depends on case law.

So planners will now have to determine from the outset whether sites 'provide acceptable returns to a willing land owner and willing developer', taking into account contributions to infrastructure and affordable housing. This is incredibly difficult and would I suspect make it easier for developers to argue down levels of affordable housing. Or perhaps not, as plans must also be based on evidenced need, and there is plenty of evidence that affordable housing is needed around the country. (As an aside, case law suggests that 'acceptable returns' for a developer are currently around 20% profit on costs. Supposedly they can only get bank loans if such high returns can be demonstrated.)

The framework would seem to make it much more difficult for local planning authorities to refuse planning permission on the basis of factors like poor design, impact on traffic, or inappropriateness of siting. However, lest the shires start to panic, 'The Government attaches great importance to Green Belts.' The draft framework assumes that new buildings in the green belt are 'inappropriate' and should not be allowed except under 'very special circumstances'. Interestingly, such circumstances include development approved by micro-referendum under a Community Right to Build Order, which would be permitted as long as it preserved the qualities of the green belt.

Personally, I am very interested in the effect that the new planning context will have on the delivery of renewable energy. Broadly I think the framework could improve the situation, although this is by no means certain as there are several policies that would interact. Firstly:

'When located in the Green Belt, elements of many renewable energy projects will comprise inappropriate development. In such cases developers will need to demonstrate very special circumstances if projects are to proceed. Such very special circumstances may include the wider environmental benefits associated with increased production of energy from renewable sources.'


Depending on how 'very special' case law deems the global threat of climate change to be, this could be used to prevent renewables on the green belt. Which, lest we forget, covers 13% of England. However, elsewhere in the framework it is stated that:

'local planning authorities should recognise the responsibility on all communities to contribute to energy generation from renewable or low-carbon sources,' and

'When determining planning applications, local planning authorities should apply the presumption in favour of sustainable development and:

• not require applicants for energy development to demonstrate the overall need for renewable or low-carbon energy and also recognise that even small-scale projects provide a valuable contribution to cutting greenhouse gas emissions; and

• approve the application if its impacts are (or can be made) acceptable. Once opportunity areas for renewable and low-carbon energy have been mapped in plans, local planning authorities should also expect subsequent applications for commercial scale projects outside these areas to demonstrate that the proposed location meets the criteria used in identifying opportunity areas.'


Notably, the government has dampened the pro-renewables language in the earlier independent practitioners draft of the framework (that they comissioned), which stated that:

'When determining planning applications, local planning authorities should [...] not presume against energy development outside mapped areas nor require applicants for energy development to demonstrate the overall need for renewable or low-carbon energy or question the energy justification for why a proposal for renewable and low-carbon energy must be sited in a particular location.'


I think the effective difference is that local planning authorities are being given the chance to plan pro-actively for renewables, but also potentially constrain where they are developed. There is thus the possibility that very limited space could be designated by lots of local planning authorities, adding up to a woefully insufficient national renewable energy supply. That said, until local planning authorities actually set out such pro-active policies, the presumption in favour of sustainable development would apply. Moreover, it would seem to still be a strong consideration once plans are in place, likely resulting in a high rate of success at appeal.

I do feel sorry for planners. They must be under enormous pressure to get their local plans in place and up to date as soon as possible, to forestall all kinds of unexpected planning applications, whilst also being required to involve as much of the community as possible, even if the community are reluctant and the provisions of the Localism Bill still in flux. As plans must be needs-based, a lot of evidence about housing, economic development, and all kinds of infrastructure is urgently needed. Moreover, there's the Community Infrastructure Levy to implement if the local planning authority has any hope of collecting meaningful contributions to infrastructure from development over the next few years. Also forthcoming zero carbon homes requirements, which will force local planning authorities to decide what to do about allowable solutions (a form of carbon offset). Meanwhile, planning budgets are being slashed and posts lost, planners are branded obstructive bureacrats, and local councillors tend to take the government's localism rhetoric at face value. Tough times for the planning profession.

But how can you as a citizen make the National Planning Framework work for you? If I had money to invest, this is what I would do. First, dig through DECC's renewable energy data to find rural local planning authorities with a lot of wind energy potential. Then I'd check which have out-of-date local plans, likely ending up with quite a substantial list. Within those areas, I'd look for agricultural land suitable for wind farms (taking into account buffer zones and other factors set out in the National Policy Statement for Renewable Energy Infrastructure), rent or buy it, then put in planning applications for wind farms. Even if the local planning authority found some pretext on which to refuse the applications, they should be easily won on appeal, thanks to the presumption in favour of sustainable development.

This strategy should yield good financial returns, whilst increasing the UK's renewable energy supply, greatly annoying climate change deniers, and highlighting the vast chasm of understanding between national and local Conservative politicians. The attempts of local councillors to describe wind turbines as economically, socially, and environmentally unsustainable would be entertaining to witness, I suspect. (If you'd like a sneak preview, read this recent appeal decision. Hard as it is for me to say, in this rare instance I agree with Eric Pickles.)

Overall, my opinion of the draft Planning Policy Framework is inconclusive. It could allow rampant poor-quality development and general mayhem, but won't necessarily. A lot depends on the interpretation of the word 'sustainable'. Planning guidance did badly need simplification, and although I don't agree with every facet, this framework is a better start than I was expecting. As ever, the devil will be in the detail. A word of advice, though. If you are genuinely averse to new development and would like avoid exposure to it, move deep into the greenbelt because this new vision of the planning system looks not unlike the Thatcher model of the 1980s. Except, hopefully, with more wind farms.

Friday, 23 July 2010

Youthful high spirits

As a distraction from the scary labour market, I've been considering the housing market prospects for me and the rest of today's youth. This is akin to distracting yourself from an earthquake by setting off a small nuclear bomb.


I recently came across an article in the Independent's money section about a young woman called Eloise wanting to buy her own home. Eloise earns £22,350 and has savings of £1,000. She would like to buy a two bedroom flat in London, or maybe Bristol, and wants her financial decisions to be ethical, although I'm not quite sure what that means in this context.

I'm sorry Eloise, but I read this article and burst out laughing. SERIOUSLY? You really think that on those wages and with such paltry savings that you can afford to buy so much as a shed? Wake up and smell the coffee. In Cambridge, which is cheaper than London, I would need to earn £40,000 and have a £50,000 deposit in order to buy a two bedroom flat.


My generation, the twentisomethings renting at the moment and thinking it might be nice to buy one day - we are screwed.


We rent poor quality homes at at high cost, and are treated badly by rental agents and landlords because they can. They will continue to do so, and rents will rise with demand.

We struggle to save for the 25% deposits needed to buy a home. Low interest rates erode the value of our ISAs and our jobs look insecure, if we're lucky enough to find and keep one. Rates are expected to stay low for the next two years.

We attempt to repay our student loans, whilst glowering at our parents who got their degrees with no fees and generous grants. The interest rates of these loans are going up to 4.4% in September from the current 0%, and that's before the student loan company is privatised (as announced in the June budget).

We can't get social housing, because there isn't enough to go around and established families get precedence, reasonably enough. Funding for building more has been slashed and burned, and targets torn up.

We can't get mortgages, as we're seen as too much of a credit risk and don't have vast deposits. Introducing caps on mortgages has been suggested and returning to the era of easy mortgages would be highly unwise, given that unwise lending caused the downturn in the first place.

We can't find housing that fits our needs, because developers are building tiny rabbit hutch flats to store us in, and we're priced out of the few decent-sized houses that exist. UK new builds are the smallest Europe, reports the Commission for Achitecture and the Built Environment. Even the Daily Fail says so!

We simply can't afford to buy, as the gap between wages and property prices continues to gape wider and wider and youth unemployment rises inexorably.

I am not particularly happy about this, and doubt that anyone else in my demographic group is thrilled either. I certainly don't consider myself entitled to own a palace at the age of 25, but do think it reasonable to have a well-maintained home that I can feel secure in for more than six months.

The likely result of the coalition's so-called housing policy is this: the house price bubble will return in South, pushing up rents further. This is at a time when housing benefit has been capped and other benefits decoupled from housing cost inflation. Homelessness will increase. Mortgage availability, especially for first time buyers, is not about to get better. Employment prospects are poor and taxes rising. Last year, 75% of new housing starts had some form of government subsidy. Despite this, very low number of houses were actually delivered. With this support severely cut, the number of new houses built is already falling and will fall further. So prices will continue to rise, supply will continue to lag, ad nauseam, until the whole East of England falls into the sea in 2054.

Things aren't completely hopeless, though. Here are my suggestions for improving the state of the housing market.

  1. If the coalition aren't going to have a housing policy, they should get rid of the post of Housing Minister. This accords with their drive to get rid of bureaucratic non-jobs.

  2. Tenancy law needs to be reformed to make private rental more humane. Look how Germany and much of the rest of continental Europe manage it: longer tenancies, more rights for tenants to match their responsibilities, less of an assumption that home ownership must always take precedence. Implementing the recommendations of the Rugg Review would be a start.

  3. Second homes & buy-to-let should be penalised through the tax system, rather than supported. This may seem unfair to those just trying to invest for their retirement and so forth, but I believe it is necessary. It surely isn't justifiable to have millions of homes standing empty, when so many people are homeless, overcrowded, or housed unsafely.

  4. The planning system is in need of reform, as it cannot achieve what it needs to in the 21st century. However, reform needs to happen in a measured way with full consultation with actual planners, rather than abolishing bits at random and expecting Local Authorities to keep calm and bugger on somehow. (There will doubtless be a future post on planning and its current state of chaos.)

  5. The government needs to investigate and regulate oligopolistic behaviour in big developers and house-builders, including land-banking, with the aim of introducing a bit more competition into this sector. Other countries manage to build more and quicker, in part thanks to a much more dynamic and competitive building sector.

  6. It would be helpful to streamline compulsory purchase powers, which assist Local Authorities in building their own social housing by letting them grab unused land. The major cost of social development is the land, as the public sector is priced out by developers who can realistically expect 25%+ profit margins.

  7. The UK needs a culture change from the tired old adversarial planning system. I'm sure that more competition in the building sector would help with this. We might then be able to follow the Netherlands' good example and try public & private sector joint ventures to build new homes.

  8. Everyone needs to think differently about housing. A roof over your head is a right first and foremost, and an investment second. Likewise, we should stop thinking of a home as synonymous with ownership. If private rental was reformed and social housing more widely available, views should evolve accordingly.

  9. The planning system should make room for different kinds of homes as well as different tenures - canal boats, caravans, yurts, treehouses, old train carriages, hobbit holes, etc. Not everyone wants to live in a brick box, and it certainly isn't positive for the environment to force everyone to do so.


My current preference is for a yurt, after staying in one for a weekend's holiday. It would certainly cost quite a bit less than that elusive two bedroom flat.