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Insights on planning white paper and its impact on Build to Rent

Moda Living’s Planning Director provides insights on the ‘Planning for the Future’ White Paper and discusses what impact it may have on the Build to Rent sector.

By James R Blakey, Planning Director, Moda Living

The ‘Planning for the Future’ White Paper is an ambitious attempt by Government to revolutionise the planning system, and while there is much to be welcomed, there are significant areas which require clarification and debate. In short, will the White Paper lead to a step-change via the Prime Ministers railing-cry of ‘build, build, build’ while ‘cutting red tape but not standards’ as hailed by the Secretary of State and ultimately lead to the creation of more beautiful buildings and exceptional places for all? 

Much was expected from the Planning White Paper given the loud pre-publication announcements focused on a radical revolution (not evolution) and even from the early pages of the document, it’s encouraging to read that the crucial role the planning system can have on people’s lives, the economy, the environment, combating climate change and promoting design excellence (amongst a range of other issues) is recognised. This recognition is hugely important to the Build to Rent sector as we continue to secure more and more development opportunities – and seek to deliver these quickly through the planning system as part of creating exceptional places to live and work. 

The planning system has been lambasted (unfairly on many occasions) over recent decades as it sought to address a growing number of complex and interwoven development, environmental and social issues which were placed on its shoulders. The White Paper provides an exciting opportunity to rethink, streamline and refine this system.  

Whether this is a radical revolution is up for debate as many familiar elements remain – local plans, applications, appeals and neighbourhood plans – however, it’s clear that Government and the Task Force has challenged us with the proposed introduction of a myriad of important changes which will have a clear impact on the acquisition, planning, funding and delivery of new Build to Rent schemes in England. 

In the foreword to the White Paper, the Prime Minister highlights the need for people to be able to move to where ‘talents can be matched with opportunity’. In essence, creating flexibility within the residential market for people to move seamlessly as new opportunities arise without compromising the quality of their lifestyle or the accommodation within which individuals or families live. This quality and flexibility are at the heart of the Build to Rent movement and as such, it’s hugely disappointing that the potential of the Build to Rent sector is not specifically acknowledged (indeed is not even mentioned!) within the White Paper.  

There appears to be a continuing preponderance on owning assets while the Build to Rent sector is moving forward at pace, delivering exceptional quality and flexibility in placemaking, mixed-use intergenerational accommodation and amenity-rich inclusive communities. Crucially, the Build to Rent sector can play a vital role in helping to reach the 300,000-home annual target. The government should explicitly acknowledge this role given the fundamentals of the Build to Rent business model – and crucially our long-term stewardship and quality management of new homes and places. 

The proposals within the White Paper come ‘thick and fast’ and it will be fascinating to see how many of these survive through the technical and political scrutiny, which will take place over the coming months. There is also a significant amount of additional information to be provided – including the publication of a local planning authorities ‘comprehensive resource and skills strategy’ alongside reference to Government investing in modernising the planning system via its next Spending Review. These are crucial elements if the reforms are to gain traction and become workable. The ability to work constructively with planning officers who have the time and energy to engage in the preparation of substantial regeneration projects is key to whether the planning reforms will be a success or not. 

The funding of the planning system also needs a carefully crafted strategy, and the planning reforms reference the potential use of the new consolidated ‘Infrastructure Levy’ to pay for core planning services – including the revamped local plan process, which will undoubtedly require substantial additional resource from all parties. The payment of substantial planning application fees plus planning performance agreement contributions often result in sums payable to the local authority in excess of £150,000, and the ring-fencing of these monies to pay for the planning system has not found its way into the White Paper which is a missed opportunity. 

The White Paper cross-references a significant number of documents and initiatives which will become available over the coming months, and which directly impact on the proposed reforms including the National Model Design Code, the revised Manual for Streets, the Future Homes Standard, form-based development types, revisions to the National Planning Policy Framework, the potential for a new design expert body to be created, a new local authority performance framework, and clarity around how the new sustainable development test will operate. There is a substantial amount of additional information to be published before the planning reforms can be fully assessed.  

The White Paper also states that the Planning Inspectorate and statutory consultees should become more self-financing through new charging mechanisms. It’s crucial that a co-ordinated approach (not a piecemeal free for all) is adopted to ensure that the already expensive costs of pursuing planning proposals are not further inflated. Interestingly, the White Paper uses some unfamiliar planning language such as ‘gentle densities’ and ‘gentle intensification’, and advocates that all new streets are tree-lined. The definition of ‘gentle’ will be an interesting discussion, as will the practicalities of negotiating the positioning of tree-pits with utility providers and local authority highway officers. 

So will it boost the building sector? 

A fundamental element of the planning reforms is to ‘build, build, build’ via a more certain and streamlined local plan process. Prior to the publication of the White Paper, much was made of a radical move towards ‘zoning’ and the reforms do include a three-tier system focused on Growth, Renewal and Protected. Whether this is radically different from the current approach to allocating land can be debated but one element, which is radically different is the proposal within Growth areas to automatically grant outline planning permission for substantial development on allocated sites on the date the local plan is adopted.  

The definition of ‘substantial development’ has not been defined but the suggestion is that this will be set nationally. The allocation (or zoning) of substantial development sites through the local plan process will include thresholds on height, scale and density. Once automatic outline permission has been granted, the White Paper makes clear that subsequent detailed matters should be dealt with by officers via delegated powers so no further Member or local community involvement. 

This draws out a series of questions – including how we (as developers, landowners and operators) optimise and safeguard the development potential of an area or site via the local plan process?  

How is the local planning authority going to resource this process, which could result in a large (presumably) number of outline planning permissions all being granted on the same day?  

In addition, there is the question of local engagement which is also a fundamental element of the White Paper, with local political parties, communities, and individuals needing to become more organised at the local plan stage as this may be their only opportunity to have their voices heard. 

Based on the information currently available within the White Paper, it’s hard to see how the local plan process will become streamlined, more efficient and certain given the amount of detail and debate which will be required to either optimise the regeneration of a ‘substantial development’ site or mount a comprehensive opposition. The White Paper also encourages design codes and guides to be twin tracked at the same time as preparing the local plan – adding further workstreams to an already congested dance floor. The White Paper targets the completion of the revamped local plans by the end of this Parliament (Spring 24), which will require a huge step-change and major funding commitments to come forward very quickly. Nevertheless, if the Government is serious about the planning reforms this is what will be required. 

The use of technology within the planning system is welcomed and is long overdue, however professional judgment via the planning balance will continue to be hugely important… planning decisions cannot be left to an algorithm or a tick box spreadsheet approach. This is a further reason why comprehensive resourcing and investment in the planning system is crucial to deliver beautiful buildings and exceptional places. 

Finally (although there is much more which could be said), the consolidated Infrastructure Levy which is intended to replace the Community Infrastructure Levy and Section 106 Agreements has the potential to create much sensitive debate and discussion. It’s important to recognise that the Section 106 Agreement mechanism is there to mitigate the impact of development and often contains a raft of obligations and controls which are not monetary. 

It’s difficult at this stage to see how Section 106 Agreements can be phased out altogether without being replaced by a form of local agreement, even when the Infrastructure Levy is introduced. It’s also difficult to see how the Infrastructure Levy rate (or rates) set nationally could realistically account for all the many sites across the country each with their own special characteristics and personalities. There surely must be a fear that high-value areas will receive more levy monies than low valve areas. A discussion on the workability of a national Infrastructure Levy is undoubtedly going to meander along over the coming months, although the ability to leverage infrastructure levy monies to provide affordable housing is a welcomed proposal and again is long overdue. 

To conclude 

The start of the planning reform journey has been fascinating and there appears to be a genuine commitment from the Government to initiate change. Encouragingly, the White Paper has generated significant debate via a clear recognition that the planning system and the people that work within the system have a crucial role to play in creating exceptional places to live and work.  

The vast majority of the White Paper is focused on the challenge of delivering new quality homes and in this context, the Government has regrettably missed a tremendous opportunity to recognise the extraordinary potential of the Build to Rent sector. 

At Moda Living, we’re determined to approach the reforms with an open mind and continue to press the Government to enthusiastically accept that the Build to Rent sector is an excellent model that creates beautiful buildings and exceptional places for all, while enabling people to move seamlessly so their ‘talents can be matched with opportunity’ –  we’re sure the Prime Minister has already said something similar! 

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