Planning Reforms Published

Chart 1: Residential Planning Approvals

The revised national planning policy will be published today, in what could be a welcome boost to the construction industry.

The planned simplification could make it easier for developers to take projects through to site, and concessions such as protections for national parks should go a little way to appeasing key opponents of the bill.

The new regulations, which will reduce planning law from 1,000 pages to just over 50, had faced criticism from the National Trust and others who warned that it could lead to an increase in building on 'greenfield' sites and would make it easier for the Government to push ahead with contentious schemes such as high speed rail.

However, Glenigan data shows that planning approvals – particularly residential schemes – have fallen a long way since 2007, as terms of credit deteriorated, the house market stalled and developers focussed on building out existing sites. Since the turn of the year, some of the larger housebuilders have been more bullish about prospects, and this reform is another shot in the arm.

Glenigan data – released in conjunction with the Home Builders Federation earlier this year – shows the number of residential units gaining planning approval across Great Britain was 50% lower in 2011 compared to 2007. While the recession, credit squeeze and slow house market have shared the majority of the blame for this, a simpler planning system could ease the way for an uplift in planned projects over the next two years.