MHCLG also publishes consultation paper on plans to delegate most planning approvals to council officers
The government has announced plans for simpler planning rules for homes on smaller sites in a bid to boost the SME housebuilding sector.
In the latest in a flurry of announcements this week, the Ministry for Housing, Communities and Local Government (MHCLG) published a new working paper on planning thresholds for small and medium sites.
The government is proposing that 鈥榤inor鈥� developments of up to nine homes benefit from streamlined planning. It is also proposing a new 鈥榤edium鈥� category of sites between 10 and 49 homes which will benefit from simpler planning and an exemption from the governments forthcoming 拢3.4bn building safety levy.
The government鈥檚 planning reform working paper on site thresholds said that while smaller sites have some reduced requirements, such as being exempt from affordable housing and not having to provide a design and access statement, these are 鈥渓imited in scope鈥�.
鈥淏eyond this 鈥� there is little difference between how planning applications for 10 homes are treated in the system compared to those for 100 homes or 1,000,鈥� it said.
鈥淭his creates additional risk and uncertainty for SMEs, alongside upfront costs and delays to the process, which can be harder for smaller housebuilders to absorb.鈥�
MHCLG said it is exploring moving to a more proportionate planning system offering a more 鈥済radated approach鈥�, with clearer categories of development, allowing more 鈥渟ophisticated and targeted approaches to government policy鈥�. It is looking to reduce validation requirements on smaller sites and retaining shorter timeframes for determining schemes.
MHCLG has also published a launched a consultation reviewing Biodiversity Net Gain rules for minor, medium and brownfield development. It is including looking at the option of a full exemption for minor sites.
The government is looking to exempt medium sites from the build out transparency proposals 鈥� in which housebuilders have to build out schemes to agreed timeframes or potentially face fines.
It will look at minimising validation and statutory information requirements, ensuring referrals to statutory consultees are proportionate and allowing a landowner or developer to test for the principle of development particular site without the burden of preparing an application for planning permission.
MHCLG has also published a consultation paper on its plans for reforming planning committees using powers in the Planning and Infrastructure Bill.
It is proposing that elected councillors only focus on larger developments, with smaller schemes being determined by officers in accordance with a local authority鈥檚 local plan and national policy.
Applications will be divided into two tiers, A and B. Applications in tier A, including all schemes of up to nine units would always be delegated to officers. MHCLG said some 鈥榤edium鈥� schemes of between 10 and 49 homes could also be included in tier A but the consultation paper is asking feedback on what types of applications should be included.
The government also announced a 拢100m in SME accelerator loans, 拢10m for councils to fund more specialists to speed up environmental assessments and a 拢1.2m Proptech Innovation Fund to 鈥渟upport innovation in small site delivery鈥�.
>> See also: 鈥楬ousebuilders do not sit on land鈥� 鈥� HBF hits back at Rayner鈥檚 plan for slow build-out fines
Angela Rayner, deputy prime minister and housing secretary, said: 鈥漇maller housebuilders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we鈥檝e inherited 鈥� and get working people on the housing ladder.
鈥淔or decades the status quo has failed them and it鈥檚 time to level the playing field.
鈥淭oday we鈥檙e taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.鈥�
The proposals follows policies announced at the weekend to speed up development on sites with planning permission, including financial penalties for housebuilders who fail to build homes to agreed timetables.
Sector reaction round-up
Rachael Williamson, director of policy, communication and external affairs at the Chartered Institute of Housing (CIH) said: 鈥淲e welcome [today鈥檚] announcement as an important step toward unlocking the potential of smaller housebuilders to help tackle the housing crisis. Reducing red tape, providing better access to land and finance, and streamlining planning processes will empower SMEs to contribute more to meeting housing need, creating jobs, and revitalising local economies.鈥�
Melanie Leech, chief executive, British Property Federation, said: 鈥淲e are pleased to see Government considering targeted exemptions from the 性吧电台 Safety Levy and Biodiversity Net Gain requirements. We recognise the Likewise, the potential for smaller-scale schemes to be determined by planning officers will free up planning committee time, allowing council decision-makers more time to focus on larger, more complex planning applications, hopefully leading to better decisions.鈥�
Jeremy Gray, head of external affairs at the Federation of Master Builders, said: 鈥淭his is a big change for the planning system and one that acknowledges the hardships faced by SME house builders over the last few decades, which have resulted in their decline. The UK鈥檚 small house builders stand ready to deliver the homes Britain needs, but the planning system has stifled their growth.鈥�
Paul Rickard, chief executive, Pocket Living, said: 鈥淔or the first time in many years, we鈥檙e seeing clear signals that an administration recognises the critical role SME housebuilders play in tackling the housing crisis. We鈥檙e delighted to see several of the recommendations we鈥檝e worked with the Government on reflected in today鈥檚 announcements.鈥�
Jon Di Stefano, chief executive of Greencore Homes, said: 鈥淪implifying the planning process and introducing more targeted land and funding opportunities for SME housebuilders should have a transformative effect for housing delivery, not just in terms of volume but quality and sustainability too.鈥�
Richard Beresford, chief executive of the National Federation of Builders, said: 鈥淏y acknowledging that many SMEs build on sites of between 10 and 50, the 鈥楳edium鈥� sized site definition creates an opportunity to help them directly. This is the strategic step that SMEs desperately needed, and we thank the government for working with and listening to industry.鈥�
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