‘Landmark’ court case will stop developers from ducking affordable commitments, say experts

Mike Kiely, chair of the Planning Officers Society, said: “This is a really landmark case. It means that land values will have to reflect local authorities’ planning policies.

“If you as a developer have paid a price for land thinking in the back of your mind that you can claw back the money by cutting affordable housing, that strategy has now been made extremely difficult.”

Tom Barton, associate at law firm Trowers & Hamlins, said: “It has undoubtedly got huge significance. The courts are now giving increased power to local authorities to enforce their own affordable housing requirements and not allow developers to do so via use of viability appraisals.

“It’s definitely a wake-up call for developers, that unless you’re going in with a credible proposition then you can expect to have it knocked back.”

Richard Blyth, head of policy and practice at the Royal Town Planning Institute, said: “This is about the most recalcitrant developers now receiving direction that local policy must be adhered to.

“It’s not about a change in policy, but this is the court saying that you must follow the planning policy as it stands.”

However, Mr Kiely and Mr Barton warned that the ruling could slow development on some sites.

“The danger will be there are a whole load of people out there who have paid for sites and who will now need to re-evaluate their agreements with planners and landowners on the back of this case law,” said Mr Kiely.

“The trouble will be those sites might not come forward and councils will need to intervene and buy those sites and bring those sites forward themselves.”

Mr Barton added: “I can see it causing a bottleneck or at least slowing the delivery of developments. If landowners or developers can’t derive profit from a site they will simply hold onto it.”