The past few years in the housing sector have not been a walk in the park.
Change brings forth uncertainty and the industry has witnessed substantial change, most of which has not been adequately addressed.
In my two decades in the industry, planning has never been in a worse state.
Strangled planning, lack of resources
I acknowledge that funding for local authorities is the lowest ever, but there must be clear lines of accountability in this arena, and repercussions if they fail to deliver.
There must be clear lines of accountability
Since 2010, central funding for planning departments has dropped by roughly 60%, so planners must do more with less. This comes alongside an increasingly complicated planning system, which includes nutrient neutrality, biodiversity net gain, environmental impact assessments and healthy-living plans.
Local planning is the bedrock of the development system, but only a shocking 35% of all planning authorities have up-to-date local plans in place.
This data comes from a report by the Building the Future Commission and emphasises the need to improve the existing planning system in order to address the housing crisis.
Instead of advocating for radical reform, which is unlikely to happen, the commission highlights specific changes that need to be made.
With so much uncertainty in this arena, what we really need are clarity and positive paths forward
However, even a well-designed planning system will crack if it lacks the right resources.
Public interest lies at the heart of the UK’s planning system, and the preservation of the environment will always remain at the core. This is an initiative I support, but at the same time we must balance the need for housing and sustainable growth with environmental regulation.
Political uncertainty, local plans
Housebuilding has become a contentious issue in UK politics, especially following news that the government will fail to meet its housebuilding target if urgent action is not taken.
We have seen the demand for suitable homes in the UK continue to outstrip available supply, and reports and studies have repeatedly shown that a significant portion of the population lives in substandard, overcrowded or unaffordable housing.
Even a well-designed planning system will crack if it lacks the right resources
Constant policy churn means that the private sector has limited capacity to plan and invest for the long term, with changes rife across economic, infrastructure, housing and net-zero policies.
Nutrient neutrality, changing obligations
In August, the government unsuccessfully attempted to amend the Levelling-up and Regeneration Act 2023. While the amendments would have been welcomed by developers, the Office for Environmental Protection cautioned that these changes might reduce environmental protection levels.
We can continue to promote the need for new, affordable housing, collaborate to overcome obstacles and, wherever possible, work with the government
Since then, the government has proposed a new duty for water and sewerage companies to upgrade wastewater treatment works by 2030. However, that does nothing to alleviate the strain that nutrient neutrality laws put on developers in the present.
With so much uncertainty in this arena, what we really need are clarity and positive paths forward. This can be achieved only if:
- The government allocates new land for development.
- Every local authority has a straightforward, unambiguous local plan to facilitate sustainable housing development.
- Local authorities receive enough resources through adequate funding.
- Accountability exists for local authorities when targets aren’t being met.
- Clear rules are in place that acknowledge the facts around nutrient neutrality.
- Local authorities possess up-to-date plans.
- A higher uptick of adopted building plans and approvals is achieved.
- A plan is in place to reduce the cost of green materials and labour.
The clearest way forward is with policies that don’t change. While that is not something in our control, a more significant developer presence is needed to offer representation at all levels of government.
In my two decades in the industry, planning has never been in a worse state
We can continue to promote the need for new, affordable housing, collaborate to overcome obstacles, and, wherever possible, work with the government to ensure that all needs are being met in a way that doesn’t prioritise one institution over another.
The planning system may be broken, but it is not beyond repair.
Mobeen Akram is national new homes account director at Mortgage Advice Bureau
This article featured in the December 2023/January 2024 edition of MS.
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