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Osborne seeks planning changes to boost house-building Osborne seeks planning changes to boost house-building
(about 1 hour later)
Automatic planning permission would be granted on many brownfield sites in England in an attempt to boost house-building, under government plans.Automatic planning permission would be granted on many brownfield sites in England in an attempt to boost house-building, under government plans.
Ministers would also get powers to seize disused land, while major housing projects could be fast-tracked, and rules on extensions in London relaxed.Ministers would also get powers to seize disused land, while major housing projects could be fast-tracked, and rules on extensions in London relaxed.
Chancellor George Osborne said reforms were needed because Britain had been "incapable of building enough homes". Business Secretary Sajid Javid said it would speed up schemes and preclude the need for building on Green Belt land.
It follows a warning this week's Budget would cut investment in new homes. But critics have warned it may lead to the "nationalisation" of planning.
The proposed changes feature in a 90-page document to address Britain's productivity record, to be released later. And analysts have also questioned whether there is enough brownfield land - a term which refers to land that has previously been developed but is vacant or derelict - available to meet the UK's housing needs over the next 15 years.
The housing proposals feature in a 90-page document to address Britain's productivity record, to be released later.
It is aimed at boosting British workers' output levels, which experts say lag behind other leading nations - an issue dubbed the "productivity puzzle".It is aimed at boosting British workers' output levels, which experts say lag behind other leading nations - an issue dubbed the "productivity puzzle".
The chancellor's Fixing the Foundations package has been billed by the Treasury as the second half of the Budget. The chancellor's Fixing the Foundations package, which also includes measures on higher education, transport, devolution of powers to cities and trade. has been billed by the Treasury as the second half of the Budget.
Upwards extensionsUpwards extensions
BBC political correspondent Ross Hawkins said Treasury sources argue house-building boosts productivity, as it is helpful to have workers living close to their workplaces.BBC political correspondent Ross Hawkins said Treasury sources argue house-building boosts productivity, as it is helpful to have workers living close to their workplaces.
Housing is just one part of a broad plan, they say. Last year, Mr Osborne said 200,000 permissions for new homes would be made possible by 2020 as councils put in place orders to provide sites with outline planning permission.
The report also features proposals on higher education, transport, devolution of powers to cities and trade. The Treasury said the new plan went further - in effect stripping away the need for any planning permission in some brownfield locations, with the aim of ensuring 90% of viable brownfield sites have permission to build by 2020.
Under the new proposals - which will need to be approved by MPs - automatic planning permission would be granted on all "suitable" brownfield sites under a new "zonal" system, the Treasury said.Under the new proposals - which will need to be approved by MPs - automatic planning permission would be granted on all "suitable" brownfield sites under a new "zonal" system, the Treasury said.
The term brownfield refers to land that has previously been developed but is vacant or derelict. 'Plenty of land'
Another change would see ministers seek to scrap the need for planning permission in London for developers who want to extend buildings to the height of neighbouring properties. Another change would see ministers seek to scrap the need for planning permission in London for developers who want to extend buildings to the height of neighbouring properties, which they say will "add dynamism" to house building in the capital.
Planning powers will be devolved to mayors in London and Manchester, while enhanced compulsory purchase powers will allow more brownfield land to be made available for development.Planning powers will be devolved to mayors in London and Manchester, while enhanced compulsory purchase powers will allow more brownfield land to be made available for development.
There would also be new sanctions for councils that do not deal with planning applications quickly enough, and the government would be able to intervene in councils' local development plans.There would also be new sanctions for councils that do not deal with planning applications quickly enough, and the government would be able to intervene in councils' local development plans.
House prices Mr Javid told the BBC that "new ways" had to be found to speed up housing projects, as the 141,000 new homes built last year were a fraction of those needed to meet demand.
This week, the Office for Budget Responsibility warned government plans for rent reductions in social rented homes would hit housing investment. "Local people will still have control over planning," he said.
The OBR said 14,000 fewer affordable homes would be built and cut its forecast for investment in private housing by 0.7%. "The point of this is to make sure we build more homes, that local people are still rightly involved in those decisions and we find ways to speed it up."
It also said house prices were expected to rise compared with both consumer prices and household incomes. There was "no need" to build on green belt land, he insisted, to meet the government's targets.
"The green belt can be rightly protected. There is plenty of land which is not green belt that we can build on and which is suitable for housing and we need to get on with it. We need to find new ways to encourage it."
'Shying away'
But planning consultancy Nathaniel Lichfield & Partners said 90% of the UK's land mass was undeveloped and "tougher choices" would have to be made if more than two million homes were to be built by 2030.
"In some areas release of Green Belt is required alongside development on brownfield land," said its managing director James Fennell
"If government continues to shy away from this issue the housing crisis cannot be addressed."
And local government expert, Professor Tony Travers from the London School of Economics, said the proposals were a step towards the "nationalisation of planning decisions" and a "shift away" from the localism agenda of the coalition government.
Mr Javid said the productivity gap was not merely a question of economic statistics but affected wages and living standards. If the UK's output per worker was the same as the US, he said the country's total economic output would be 30% higher.
This week, the Office for Budget Responsibility warned government plans for rent reductions in social rented homes would hit housing investment. The OBR said 14,000 fewer affordable homes would be built and cut its forecast for investment in private housing by 0.7%.
A Treasury source said the OBR assessment considered only the impact of the Budget and did not reflect the new policy.A Treasury source said the OBR assessment considered only the impact of the Budget and did not reflect the new policy.
In his Mansion House speech in June 2014, Mr Osborne said 200,000 permissions for new homes would be made possible by 2020 as councils put in place orders to provide sites with outline planning permission.
Housing ladder
The Treasury said the new plan went further - in effect stripping away the need for any planning permission in some brownfield locations.
The Conservative manifesto pledged to "ensure that 90% of suitable brownfield sites have planning permission for housing by 2020".
In a statement released before the publication of the productivity plan, Mr Osborne said: "Britain has been incapable of building enough homes.
"The reforms we made to the planning system in the last Parliament have started to improve the situation: planning permissions and housing starts are at a seven-year high.
"But we need to go further and I am not prepared to stand by when people who want to get on the housing ladder can't do so."
Have you been affected by issues covered in this story? Do you work in the housing or construction industries? Send your comments to haveyoursay@bbc.co.uk.Have you been affected by issues covered in this story? Do you work in the housing or construction industries? Send your comments to haveyoursay@bbc.co.uk.
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