Neighbourhood governance and devolution: can reform deliver on housing and regeneration?

But in practice, uncertainty creates inertia. Where the boundaries and responsibilities of future unitary authorities are undecided, councillors and officers hesitate, understandably. Plans are either rushed to submission to secure transitional protection under the latest National Planning Policy Framework, or delayed pending political clarity. Neither outcome bodes well for robust housing delivery.

Moreover, political cycles are an inevitable delaying factor. Plans submitted under one administration may be examined or modified by another with different priorities. The risk of reversals is high, further discouraging progress.

“Where the boundaries and responsibilities of future unitary authorities are undecided, councillors and officers hesitate, understandably”

The bill’s most promising element is the creation of strategic authorities with responsibility for SDSs. These SDSs have the potential to elevate the most politically charged issues, such as housing numbers, growth locations and infrastructure priorities, above local disputes. They may finally provide an alternative to the much-criticised Duty to Cooperate, which has too often proved unworkable.

Coupled with new powers for mayors to introduce Mayoral Development Orders (MDOs), this strategic tier could unlock housing and regeneration at scale. For housing associations and developers alike, this creates a clearer pipeline of opportunity – but only if SDSs are implemented consistently and with sufficient resources.

The most novel aspect of the bill is the mandatory establishment of neighbourhood governance structures. The government argues that decisions made closer to residents are more responsive to local needs. But here lies a fundamental tension. If housing numbers are set strategically through SDSs, and local plans must reflect them, what real influence will neighbourhood forums have?

The risk is frustration: communities may be encouraged to draft neighbourhood plans, only to find that they have little say over the overall quantum of growth.

Funding, too, is a sticking point. Support for neighbourhood planning has been wound down, replaced instead with regeneration-focused investment for “trailblazer neighbourhoods”. Without resources, enthusiasm for neighbourhood governance could quickly fade.

But there is also opportunity. If neighbourhood structures are linked to regeneration funding, they could help shape the social infrastructure – schools, health facilities, public realm – that makes growth acceptable and sustainable. This shift from planning procedure to place investment could help neighbourhood governance become meaningful rather than tokenistic.

“If SDSs, neighbourhood governance and unitary structures work in unison, England could finally achieve a planning system that matches functional economic geographies while giving communities a stake in change”

For housing associations, the question is whether neighbourhood governance will aid or obstruct affordable housing delivery.

On one hand, stronger community engagement can build trust in schemes that include new social and affordable homes. On the other, if neighbourhood forums become vehicles for opposition to development, they may slow schemes that are already fragile in terms of viability and funding. Housing associations will need to engage early, positioning themselves not just as providers of homes but as long-term partners in community investment.

As with all reform, implementation is everything. If SDSs, neighbourhood governance and unitary structures work in unison, England could finally achieve a planning system that matches functional economic geographies while giving communities a stake in change. If not, the danger is fragmentation – with local plans delayed, housing targets missed and regeneration stalling in the gap between tiers.

The bill represents a rare opportunity to reset the balance between national, regional and local planning. For housing providers, councils and communities, the task now is to make these reforms work as parts of a system capable of delivering the homes and regeneration that we urgently need.

Peter Canavan, partner, Carter Jonas