Threats of fines and stronger compulsory purchase powers are on the cards under new government rules, announced over the weekend, but a trade body has criticised the reasoning.
Borne out of its promise to deliver 1.5 million homes, the government proposals would require housebuilders to commit to delivery timeframes and annual reports before planning permission is approved.
This would give councils the ability to fine developers per unbuilt home if they persistently fall, at least 10 per cent behind schedule without good reason, behind on work.
In addition to penalising those who fail to deliver approved builds on time, the ‘Delayed Homes Penalty’ would punish those who exploit planning permissions to trade land speculatively.
The ‘thousands of pounds’ fines would be paid directly to local planning authorities.
The rules would apply to developments of 50 or more homes and prospective fines would be based on lost council tax revenue.
Those deliberately sitting on vital land, without building the homes promised, could also see their sites acquired by councils and stripped of future planning permissions.
Richard Beresford, chief executive of the National Federation of Builders (NFB) was critical of the proposals: “Housebuilders build homes. They do not sit on land they can deliver. Landowners, land promoters and developer investors might sell permissions, but this is because they are not the ones building the site out and making the finances work.”
He warned the plans gave way to more work being needed to put the changes into practice: “For developers to offer delivery timelines would require a rules-based planning system based on certainty, which is the opposite of the UK system.
“It also needs major utility, environmental and legal agreement reforms, to name a few barriers.
“If there are not a considerably high number of penalty exemptions, fewer homes will be built because builders will avoid the risk that planning politics over-rules reality.”
For Angela Rayner, deputy prime minister and housing secretary, the new rules come as ‘radical steps to overhaul the planning system’ and fix the housing crisis 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,” she said.
“We’re going even further to get the homes we need. No more sites with planning permission gathering dust for decades while a generation struggle to get on the housing ladder.”
Supporting its wider planning reform proposals, the plans form part of the government’s working paper, ‘Speeding Up Build Out’.
A new requirement for developments with more than 2,000 homes, to include a mix of affordable and commercial housing by default, is also due to be tested.
Was this interesting? Try: Landmark case on construction remediation costs will permit claims against contractors going back 30 years
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
