Government Obstacles On The House Building High Road
Below is a MRR and PLR article in category Society -> subcategory Politics.
Government Challenges on the Path to Increased Housing
Summary:
The introduction of a planning charge aims to fund necessary infrastructure for new developments and encourage positive housing and economic growth plans by local authorities.
Article Body:
In late 2007, the government introduced two significant proposals affecting the house building industry well into the future. The first was the ambitious goal of constructing 3 million new homes by 2020. The second, and arguably more impactful, was the proposed statutory planning charge.
This planning charge is intended to finance the infrastructure essential for new developments, encouraging regions and local authorities to embrace housing and economic expansion actively.
The decision to abandon the contentious Planning Gains Supplement (PGS) in favor of the planning charge has been welcomed by the industry. Concerns were rife that PGS might lead to a decline in available development sites and render many projects financially infeasible.
While the planning charge represents progress, it is not without its challenges. As a form of land tax, it could potentially increase housing costs or reduce land values, negatively affecting the availability of development sites.
The proposed planning charge hinges on a costed assessment of specific infrastructure needs, considering regional land value differences. This is crucial, as land costs in the South are markedly higher than in the North. A lack of regional sensitivity in the charging structure could severely hinder development in higher-priced areas.
Initial suggestions from the British Property Federation and other industry groups recommended that charges vary based on the nature of the site?"whether greenfield, brownfield, or part of a regeneration scheme. Developers should be allowed to negotiate lower tariffs if a project is unviable due to such charges or other requirements like Section 106. This flexibility is crucial for the proposal's success.
A key objective of the planning charge is to streamline the planning process. While simplifying this process is a positive step, it must be coupled with expanding land availability. Relying solely on brownfield sites is insufficient; utilizing the greenbelt is essential to meeting housing targets. Approximately 2 million of these new homes will need to be built outside existing urban boundaries.
Natural England is considering a review of the greenbelt, potentially releasing parts for development. This process would emphasize creating green wedges and corridors to connect nature with developed areas. Many in the house building industry would support a realistic review that balances greenbelt protection with housing needs. While initially created to curb urban sprawl, the greenbelt has become a politically sensitive topic, making changes challenging.
Building in sustainable greenbelt locations with existing infrastructure offers a more viable solution to England's housing shortage than creating new towns with limited services and community structures.
Government decisions on planning and housing must prioritize population needs over political gain. It's critical to remember that it's house builders?"not the government?"who construct homes. Care must be taken not to stifle opportunities with policies that might limit supply or render developments economically unfeasible.
House builders are ready and willing to meet housing demands but face obstacles like land scarcity, lengthy planning processes, and insufficiently viable opportunities. The hope is that the new planning charge will ultimately support rather than impede the industry.
You can find the original non-AI version of this article here: Government Obstacles On The House Building High Road.
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