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James Brokenshire has said he agrees that “increased housing diversification” should be funded through reductions in land values.
The housing secretary made the comments as part of a written statement on planning published alongside yesterday’s Spring Statement, partly in response to Sir Oliver Letwin’s Independent Review of Build Out, published in October.
Sir Oliver had suggested that to speed up development, builders should accept suggested levels of affordable housing on large sites, if they are to receive government support such as Help to Buy.
Mr Brokenshire said he welcomed his fellow Conservatives’ support for “greater emphasis on housing diversification within the planning system” and noted the recommendation, while also noting “that many in the [housebuilding] industry are sceptical of this approach”.
“My focus is on evolving the existing system of developer contributions to make them more transparent, efficient and accountable, and my department is gathering evidence to explore the case for further reform,” he added.
The government confirmed at the Spring Statement it will publish new planning guidance on housing diversification.
Mr Brokenshire also announced that it will publish an Accelerated Planning Green Paper later this year that will focus on how to speed up planning decisions.
And he revealed that government will “review permitted development rights for conversion of buildings to residential use in respect of the quality standard of homes delivered”.
Permitted development rights allow commercial buildings to be converted into homes without planning consent, but have been criticised for producing small, poor quality homes.
The government said in the Autumn Budget it planned to extend permitted development rights to include demolishing non-residential buildings and then rebuilding them as homes. But the housing secretary said this would continue to be considered, suggesting it will not be taken forward.
However, Mr Brokenshire did indicate that the government will press ahead with extending permitted development rights so that properties can be built upwards to provide new homes.
He added: “I intend to implement an immediate package of permitted development right measures in the spring, with the more complex matters, including upward extensions, covered in a further package of regulations in the autumn.”
The housing secretary also announced that a consultation to develop a Future Homes Standard for all new homes will be launched later this year, with the standard expected to be introduced by 2025.