Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 6
6
Paragraph: 43
Local councils should be able to protect certain areas from permitted developments rights where they...
Conclusion
Local councils should be able to protect certain areas from permitted developments rights where they have legitimate concerns about the impact on town centres, high streets and commercial centres. We welcome the amendment to the proposed changes to the National Planning Policy Framework clarifying that Article 4 directions may be applied “to prevent the loss of the essential core of a primary shopping area”. This is an improvement on the original proposal, although it is too early to say if it goes far enough. It is also not clear why the Government feel it necessary to amend the current wording or what problem it is trying to fix. In addition, we still believe that councils should not have to wait one year before being able to apply a direction without also being liable to pay compensation to developers.
Paragraph Reference:
43
Government Response
Acknowledged
HM Government
Acknowledged
The Commercial, Business and Service use class (E) has, since 1 September 2020, supported the diversification of our high streets, enabling premises to move to wider range of commercial and leisure uses without the need for a planning application. Building on this, the permitted development right for the change of use from the Commercial, Business and Service use class to residential use is, from 1 August 2021, helping support housing delivery, the regeneration of our high streets and town centers and the wider economy. New residents of the homes delivered by the right will bring life to such areas, supporting local business such as restaurants and shops and any new and emerging uses. By ensuring a higher threshold for making Article 4 directions relating to change of use to residential, we are supporting high streets by maximizing the potential for vacant or underused buildings to be converted to an alternative use. The amendment to paragraph 53 of the National Planning Policy Framework in July 2021 is ensuring that all Article 4 directions are evidence-based and carefully targeted, achieving the right balance between providing local authorities with the means to protect valued local facilities and maintaining flexibilities under permitted development rights, so that we continue to add to our housing supply. Local planning authorities may make an immediate or non-immediate Article 4 direction. Primary legislation sets out that where planning permission granted by a development order is withdrawn, and permission is refused or granted subject to conditions, compensation may be payable to developers who have incurred wasted expenditure, loss, or damage as a result of a permitted development right being withdrawn. This may be mitigated by giving 12 months notice. This is not a legal requirement, rather it is common practice to help mitigate against any potential liability to the local planning authorities for the payment of compensation to affected developers. This recognizes the impact of the withdrawal of the permitted development right on the property rights of owners.