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Gove sets out house-building revival plan

24 Jul 23 The government has unveiled a raft of measure designed to kick the house-building market back to life.

Planning “super squads”, further relaxation of permitted development rights, compulsory purchase order reform and bringing flexibility to the new second staircase rules are among measures set out by Michael Gove, secretary of state at the Department for Levelling Up, Housing & Communities (DLUHC).

Under-staffed local authorities are to be reinforced with a new “super-squad” of planning professionals, backed by a £24m fund (which averages out at a little over £50,000 per local planning authority across England).

Permitted development rights – including the right to convert buildings from shops to housing, and to build extensions on existing houses without applying for planning permission – are to be further relaxed.

Landowners selling farm land for development can expect to receive less money as they will be made to share the development premium with the state. On this Gove, explained: “The government intends that a consultation will be undertaken to inform the policy on a reasonable premium for landowners above existing use value, to support the development of plans for the new quarter. To the extent that infrastructure and affordable housing need justifies this position, the government anticipates that policy will be set to capture land value uplift above the premium. This will enable landowners to receive fair compensation for their land while minimising the public sector investment required to bring the development forward.”

(In May Labour leader Keir Starmer set out similar plans should he win the next general election, promising to pay landowners only what their land is worth without planning permission; the so-called ‘hope value’ premium will go, he said.)

The secretary of state also evidently shares the frustration of developers whose plans for tall buildings have been invalidated by his recent mandate that second staircases must be put into all new residential buildings above a certain height. After lobbying from industry professionals, he has decided to tighten this threshold  from the initially proposed 30 metres to just 18 metres.  However, he appears to be in the mood for compromise. “The government is clear that this new regulation cannot jeopardise the supply of homes by disrupting schemes that have been planned for years,” he said. “DLUHC will work rapidly with industry and regulators over the summer to design transitional arrangements with the aim of securing the viability of projects which are already under way, avoiding delays where there are other more appropriate mitigations.”

He also announced an £800m allocation from the existing £1.5bn Brownfield, Infrastructure and Land fund to unlock up to 56,000 new homes on brownfield sites – putting in infrastructure to open the gates to private developers.

Prime minister Rishi Sunak said: “Our reforms today will help make that a reality, by regenerating disused brownfield land, streamlining planning process and helping homeowners to renovate and extend their houses outwards and upwards.”

Industry reaction

The Chartered Institute of Building (CIOB) was pleased that its advice on staircases in tall buildings appears to have been taken. Director of external affairs Eddie Tuttle said: “The safety of residents and emergency services workers is paramount and can never be understated.

“We have always believed the proposal to mandate secondary staircases for buildings over 18 metres tall to be the best solution as it provides a more comprehensive strategy in ensuring all high-risk buildings have more than one means of a safe entrance and exit. Not only does it make exiting buildings in the event of an emergency easier, but it also allows emergency workers to avoid interruption.

“CIOB is delighted the government has listened to our feedback, together with the Royal Institute of Chartered Surveyors (RICS) and Royal Institute of British Architects (RIBA), and we hope they will continue to listen to our expertise throughout the remaining lifetime of the evolving Building Safety Act and its secondary legislation.”

Aside form that, the broad consensus seems to be that Gove's measures are better than nothing but more is probably needed.

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Persimmon chief executive Dean Finch said: “Persimmon welcomes the proposals announced today to deliver much needed reform of the planning system with the aim of accelerating the development of new homes that will help hard-pressed people achieve their dream of affordable home ownership.”

Kier Group chief executive Andrew Davies said: “Construction and infrastructure have a key role to play in supporting economic growth. As such, any steps taken to speed up planning consents and invest in the improvement and regeneration of communities are welcome.”

Royal Town Planning Institute chief executive Victoria Hills said: “I believe this investment into the planning system will make a significant contribution to alleviating the pressure placed on England’s planning services. Well-resourced Local Planning Authorities have the power to make a unique contribution to their areas, helping to deliver the affordable homes, public services, and critical infrastructure individuals, families and communities need.”

UK Green Building Council deputy chief executive Simon McWhirter said: “The government is right to focus on building more homes in urban areas but unblocking the planning system shouldn’t mean cutting environmental corners. 

“Instead, the government should seize this moment to bring the planning system into line with our Climate Change and Environment Acts so that communities and developers alike can have confidence that only high-quality green homes get the go-ahead in the right places. We need to end the planning barriers that are blocking the solar panels, heat pumps and insulation urgently needed to modernise our homes, which the government can achieve by amending the Levelling Up and Regeneration Bill after the summer. 

“The forthcoming Future Homes Standard is another critical opportunity to ensure the tens of thousands of homes set to be built are super-insulated and fit for our low-carbon economy. The next generation of homes must not repeat the mistakes of the past by saddling households with unaffordable energy bills, high retrofit costs, or landing us all with the cost of unnecessarily large electricity grid upgrades.  Renters in cold damp homes have long been waiting for stronger minimum energy efficiency standards, so the government must urgently bring this forward. 

“We will need to convert unused commercial buildings on our high streets into homes, but only where they can meet basic standards of space and natural light. With climate breakdown at our door, every housing development and planning decision must help us cut carbon emissions, adapt to high temperatures, floods and drought, and restore biodiversity, or we risk a backwards step for households and our planet.”

Federation of Master Builders chief executive Brian Berry said “A plan for more housing is very welcome and hopefully it will go some way to get housing numbers back on track. It’s positive to see a focus on brownfield sites which are the mainstay of SME house builders, but the planning system also needs to be fixed to ensure that these developments become a reality. Too many SME house builders are stuck in planning purgatory which stops the delivery of housing and employment opportunities in their communities.”

Victoria Du Croz, head of planning and partner at London law firm Forsters LLP, said: “The government and DLUHC appear to be having a knee jerk reaction to the results of last week’s local elections and the impending general election in 2024, essentially seeking to demonstrate that action has been taken to deliver on housing and development in the current parliamentary term. A focus on inner cities makes sense, given the Conservative’s aversion to delivering development on the green belt, but the reality of bringing more homes to the cities will mean building high in order to reach the necessary density. Neither brownfield sites or conversions of office to resi have delivered the number of new homes that are needed across the country to date. Re-focusing on these planning mechanisms, by expanding permitted development rights to shop and commercial conversions is unlikely to boost housing numbers to the levels that are needed. Today’s announcement failed to recognise the vital importance of a cohesive vision for our towns and cities, that housing is just one element of growing the economy and supporting people. Housing is needed alongside job creation, space for warehousing and a retail and leisure strategy.”

Lawrence Turner, director of Boyer (part of Leaders Romans Group), said: “Michael Gove's announcement today will make it easier to convert retail premises and agricultural building into homes and relax permitted development rules for homeowners to convert loft spaces and renovate buildings – building on the government’s ‘Brownfield First’ policy announced in February this year.

“Regrettably, the current policy announcement falls significantly short of addressing the UK's housing crisis. Offering a complete solution demands a balanced strategy, encompassing both brownfield and greenfield development, and a proper review of the green belt. Unfortunately, the present government announcements sidestep any commitment to development on greenfield land.”

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