Plans to cut the cost of delivering new homes could have a bigger impact on development viability than the prices ultimately paid by buyers, a planning specialist has said.
The Conservatives have proposed a sweeping deregulation programme which they claim could remove up to £50,000 from the cost of delivering a new home.
Plans unveiled at the party’s conference in Birmingham include replacing Section 106 agreements and the Community Infrastructure Levy (CIL) with a single developer levy, scrapping the Future Homes Standard and abolishing Natural England and the Environment Agency.
The party argues the changes would cut costs and delays and accelerate housebuilding.
SITE VIABILITY
Lawrence Turner, (main picture, inset) Director at planning and development consultancy Boyer, says the £50,000 figure is “eye-catching” but warns lower construction and development costs would not necessarily translate directly into an equivalent reduction in sale prices.
He says: “The potentially more significant benefit is that lower development costs could improve viability of sites and help more consented schemes move into delivery.”
Turner says lengthy Section 106 negotiations can leave schemes waiting months after councils have resolved to grant planning permission before permission is actually issued.
He adds: “A simpler and more predictable system could therefore make a real difference, although it would still need sufficient flexibility to deal with affordable housing, infrastructure requirements and scheme viability.”
PLANNING DELAYS
Turner also questions whether abolishing Natural England and the Environment Agency would itself remove development delays.
He says many requirements faced by developers stem from underlying legislation and transferring responsibilities to Defra would not necessarily eliminate them if the legislation remains unchanged.
Turner adds: “Ultimately, that’s probably the most important test of any reform. It’s whether it gives developers greater certainty, reduces unnecessary delay and results in more homes actually being built.”
