Focus on planning after the Budget

Following yesterday’s Budget, much of the initial analysis by the commercial property industry focuses on planning reforms. Philip Atkins, executive director of Planning at CBRE, says anything that removes delay and reduces uncertainty “must be welcomed”. However, he notes, “it shouldn’t be forgotten that the ‘prize’ of securing planning permission also creates development value.”

He feels that while presumption in favour of sustainable development is a positive step, some confusion – and a rash of appeals – will be created by the suggestion that local communities will dictate the use of brownfield land. He also notes that the proposal runs the risk “of empowering the better informed and influential minority within society to challenge almost all new development, halting or delaying much-needed growth.”

Roger Hepher, head of planning at Savills, points out: “There used to be a presumption in favour of development in the 1980s and ’90s, but it somehow got dropped from the legislation, and that gave succour to NIMBYs throughout the kingdom. At a time when economic growth is so important, it is right that it be brought back – but in a new form, reflective of the fact that climate change, energy conservation and other environmental concerns are now centre stage.” He notes that much of the detail is still to be announced – and he hopes that the government doesn’t spend so long deliberating over the definitions and regulations that opportunities are missed.

Stephen Robertson at the British Retail Consortium has welcomed the streamlining of the planning system: “A presumption in favour of development and removing unnecessary planning requirements will help economic growth and free planners to accelerate decisions where they should be involved. For example, it should be made easier to make internal changes to commercial buildings.”

The Budget also referred to changes to enable empty office buildings to be re-classed for residential use. Roger Hepher at Savills says the implications depend very much on the detail, but notes that it could have the effect of “opening up land for residential development that has hitherto been protected for employment purposes, especially in parts of London.” At CBRE, Philip Atkins says that while the move might be appropriate for individual office units that are well located near existing residential areas or town centres, it would clearly not be adopted where councils were keen to retain office floor space in order to meet the particular business needs of a community.