Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 18
18
Paragraph: 129
It is our view is that the pace of completing planning permissions is too slow,...
Recommendation
It is our view is that the pace of completing planning permissions is too slow, and that carrots and sticks are needed to quicken the pace. The Government should produce a strategy for increasing the extent of multi-tenure construction on large sites in line with the Letwin Review’s recommendations. It should explore the greater use of Development Corporations that are transparent and accountable, alongside incentivising the use of smaller sites and SME builders. We also recommend introducing, in the first instance, time limits for the completion of construction and non-financial penalties where those limits are exceeded without good cause. The Government should set a limit of 18 months following discharge of planning conditions for work to commence on site. If work has not progressed to the satisfaction of the Local Planning Authority then the planning permission may be revoked. An allowance of a further 18 months should be allowed for development to be completed, after which the local authority should be able, taking account of the size and complexity of the site, and infrastructure to be completed by other parties, to levy full council tax for each housing unit which has not been completed.
Paragraph Reference:
129
Government Response
Acknowledged
HM Government
Acknowledged
37. The Government acknowledges the conclusions of the Letwin Review and agrees that increasing diversification on very large sites is important to support the rate of build out. The Government is committed to ensuring SMEs have the right support in place. This includes making the planning system more certain, streamlined, proportionate and digitally enabled, and through the provision of SME loans funds, such as the £1.5bn Levelling Up Home Building Fund, which launched earlier this year to build on the success of the Home Building Fund. 38. Very large sites (10,000+ homes), including urban extensions and standalone new settlements, face significant challenges in the current planning process, but in some areas these sites are essential to meet housing ambitions. To improve delivery, changes to the planning system will maximize what can be done through the local plan process, including revising the tests of soundness, and introducing powers for authorities outside of Mayoral Combined Authorities to voluntarily produce a Spatial Development Strategy. The Bill will also improve the system of locally led development corporations to support local areas’ plans for regeneration and growth. 39. TThhee GGoovveerrnnmmeenntt aaggrreeeess wwiitthh tthhee CCoommmmiitttteeee tthhaatt iitt iiss ccrriittiiccaall ttoo eennssuurree ccoonnssttrruuccttiioonn bbeeggiinnss aass ssooonn aass ppoossssiibbllee oonnccee ppllaannnniinngg ppeerrmmiissssiioonn iiss ggrraanntteedd.. DDeevveellooppeerrss aanndd aauutthhoorriittiieess sshhoouulldd wwoorrkk cclloosely together at a local level to ensure that communities have access to the homes they need. 40. In recognition of the importance to communities of bringing forward new development in a timely manner, the Bill gives authorities stronger tools to respond when build rates are unreasonably slow. Housing developers will be required to formally notify local authorities, via a Development Commencement Notice (DCN), when they commence development and provide a trajectory setting out annual rates of housing delivery to completion. 41. In addition, it streamlines the process for local authorities to serve completion notices on development to give authorities more control and make them a quicker, more attractive option to pursue. The effect of a notice is to impose a deadline for completion, after which the remaining unfinished parts of a development will lose planning permission. This will give greater control and certainty to local planning authorities when serving notices.