6 things we learned from the government’s second overhaul of planning rules

Increasing densification and development near train stations

As part of a policy already announced last month, the government is looking to boost development of homes around train stations. 

Proposals in the consultation would introduce a new minimum density requirement of 40 dwellings per hectare around all stations and a “more ambitious” requirement of 50 dwellings per hectare around “well-connected” stations.

These stations are defined as those located within the top 60 ‘travel to work areas’ by gross value added and those with a service frequency of two trains per hour in any one direction. Schemes meeting these requirements will be given a “default yes” and this will apply on green belt land.

Housing and planning minister Matthew Pennycook told the House of Commons this week that the “primary thrust” of the planning reforms is to “double down on a brownfield-first approach”.

The proposals include a “presumption in principle for development in urban areas”, he said, which in practice means development on suitable urban land will be “acceptable by default”. Decision-makers will be expected to “give substantial weight” to proposals that promote the reuse of brownfield land and urban intensification, the consultation document said. 

The government is also proposing policies to drive densification in urban areas by specifically supporting redevelopment of existing plots, the addition of mansard roofs, infill developments, upwards extensions and higher buildings at street corners.

Taken together, the new pro-densification policies and support for development near to train stations could unlock land for 1.8 million new homes, the government said. This is a significant housing supply boost, but is not expected to be realised quickly, with homes to be delivered “in the coming years and decades”.

Securing a diverse mix of homes, including more affordable rural homes

The planning policy overhaul also aims to deliver a more diverse mix of homes, which meet the needs of different groups.

There is stronger support in the draft NPPF for rural social and affordable housing, including an amendment to the definition of ‘designated rural areas’ in the current framework to allow affordable housing contributions to be sought on minor developments in parishes with a population of fewer than 3,000 people.

Accessibility is also a key feature of the reforms, with a new requirement for authorities to set out the proportion of new housing that should be delivered to building regulations standards which focus on adaptable and accessible dwellings. The government said this will ensure local plans “adequately provide for the accessibility needs of an ageing population and the needs of disabled people”.

Last year’s changes to the framework made clear that local planning authorities should consider the needs of people who require social rent homes.

To build on this, the new consultation is seeking views on whether to “specify a minimum proportion of social rent housing”. The percentage proposed is 10%, which would be required for major developments unless otherwise specified in development plans.

Support for SME house builders 

One of the other big aims of the government’s new policy measures is to provide further support for SME house builders in order to diversify the sector.

The consultation proposes the introduction of a ‘medium site’ category – covering sites between 10 and 49 homes – which will mean SME builders would not face the same rules and costs of larger housing sites. 

The consultation said the government will “explore further the potential benefits and drawbacks of enabling developers to discharge social and affordable housing requirements through cash contributions in lieu of direct delivery” on these medium sites.

But the government recognised that further consideration is needed with regards to the impact of this on its manifesto commitment to “deliver the biggest boost in social and affordable housebuilding in a generation”.

Currently, small sites with fewer than 10 dwellings are exempt from paying the Building Safety Levy, so the consultation asks whether this exemption should be extended to cover a wider range of sites, including the proposed medium sites. This is based on feedback that SME developers are “disproportionately impacted by the costs associated with development and operate on smaller margins”.

Another support measure for medium sites, which falls outside the remit of the NPPF, is the application of easements and exemptions for biodiversity net gain.

The government will introduce an “area-based exemption” for smaller sites up to 0.2 hectares, alongside consulting rapidly on additional targeted exemptions for residential brownfield development. More detail on this is expected in the new year. 

Streamlining standards

In its proposals on standards, the government recognised there are “important planning matters that are locally variable” and that where standards are set in development plans, this can increase certainty for developers. 

The reforms would also introduce a limit on local standards for energy efficiency. This is based on the government’s concern that variance in standards across local plans makes it more difficult for the construction sector to deploy energy efficiency technologies at scale.

The proposals also identify areas where local standards should not be set, including the construction or internal layout of buildings, which the government “considers are matters best left to the market to determine”.

Outside the NPPF, the government has this week launched an expression of interest for “ambitious” local authorities to help create pattern books of “standardised, high-quality house designs”.

In his letter to stakeholders, Mr Reed said these designs will “accelerate the delivery of new homes” and ensure the sector can make greater use of technology, such as artificial intelligence and modern methods of construction.

Modifying affordable housing obligations

In the context of house builders facing “significant challenges” over recent years – including the coronavirus pandemic, increased costs and higher interest rates – the government has recognised that modifications to planning obligations may be necessary to improve viability in the near term.

This was the rationale for the emergency package in London, which lowered affordable housing targets in a bid to speed up development.

The current route for local authorities to modify or discharge Section 106 planning obligations is via the Town and Country Planning Act 1990. In his letter to the sector, Mr Reed said there are “practical constraints” associated with this and as such the government is seeking views via the NPPF consultation on the “efficacy and use of existing statutory routes”. 

This is part of ongoing work to ensure there is an appropriate mechanism to discharge obligations that provides “confidence to both authorities and developers”.

Mr Reed also said the government is continuing to progress work on a “holistic policy package” to address the problem of uncontracted Section 106 homes.

Changes are not statutory, for now

The government has decided against placing these national planning policies on a statutory basis. Its aim with the new proposals is to “hardwire a set of clear, more rules-based policies” into the NPPF, and it highlighted that national planning policy “already carries very considerable weight”. 

One example cited in the consultation document is that following the introduction of the updated framework last year, an “unprecedented” 80% of major residential appeals located on grey belt land have been approved. The government said these are homes “that likely wouldn’t have been built under previous policy”.

However, the government said it will keep the decision under review and will return to it if the proposals do not have “the desired outcomes of supporting more effective decisions and reducing generic or alternate policies in development plans”.