Chancellor Jeremy Hunt has confirmed that planning laws will be changed to allow for faster planning applications.
Hunt made the announcement today (22 November) whilst delivering the autumn statement in parliament.
He said the change will bust the planning backlog and boost housebuilding and infrastructure projects.
The chancellor said from next year he will allow local authorities to recover the full costs of major business planning applications, in return for being required to meet guaranteed faster timelines.
“If they fail, these fees will be refunded automatically with the application being processed free of charge. A prompt service or your money back – just as would be the case in the private sector,” the chancellor said.
He said the government will consult on a law to allow any house to be converted into two flats, provided the exterior is respected.
The chancellor’s announcement follows recent calls by the Home Builders Federation (HBF) for the government to make changes to planning, housing targets and stamp duty.
HBF published a ‘Ten-point plan’ to boost the supply of “new high-quality homes” across the country.
The HBF plan includes ‘practical steps’ which HBF believes the government can carry out quickly without the need for major legislation.
The trade body wants planning authorities to be required to have up-to-date local plans, a presumption in favour of development on small sites and a statutory duty on planners to meet older people’s housing needs.
The chanellor’s review of the planning laws has been welcomed by the mortgage industry.
Ranald Mitchell, director at Charwin Private Clients, said: “This is big news for landlords and builders of all sizes, who will now be able to convert existing houses into two separate flats under permitted development. This will allow for a more profitable utilisation of space, and create the additional supply the market needs. A faster, more robust planning system will also benefit housebuilders with full refunds for failed applications.”
Stacey Rohwer, head of investment at IP Global, added: “Urgent action was needed around planning and this Autumn Statement was unequivocally a step in the right direction. This financial safety net, coupled with the promise of more predictable timelines and reduced bureaucracy, will encourage development projects, foster positive relationships with Local Authorities and may contribute to increased housing supply.”
