Planning for the future

Planning for the future – consultation open

On 6 August 2020 the Government launched a consultation on proposals for reform of the planning system in England. The Government has billed the 'Planning for the Future' White Paper an 'overhaul of the country's outdated planning system'.

The current system is criticised for its complexity, uncertainty, delay and discretionary nature. The White Paper identifies the system as antiquated, lacking sufficient focus on design and having lost public trust. The White Paper highlights the impact of planning on physical and mental health.

The consultation contains 24 proposals which are set within three pillars:

• Pillar One: Planning for development.
• Pillar Two: Planning for beautiful and sustainable places.
• Pillar Three: Planning for infrastructure and connected places.

The proposals include the Local Plan placing all areas of land into one of three categories: 'Growth Areas', 'Renewal Areas' or 'Protected' which would be identified on an interactive map. Growth Areas and Renewal Areas would identify suitable development uses as well as any limitations on height and/or density. Simplification, speed, sustainability, technology, community engagement and design focus are all addressed. Reform of developer contributions is also proposed; a new consolidated Infrastructure Levy could replace CIL and s106 planning obligations.

The consultation closes on 29 October 2020.

First Homes scheme, a further consultation and capturing data on contractual control over land

In addition to the 'Planning for the Future' consultation the Government also:

• Published its response to the First Homes scheme. The Government intends to implement the scheme which will offer a minimum 30% discount against open market value to certain first-time buyers in England. A higher discount rate of 40% or 50% may be available in some areas. The discount will run in perpetuity. The Government will also publish a list of non first time buyers who may be eligible for the scheme. For a three month window, there may be 'local connection' requirements for those wishing to purchase a property through First Homes.

  The Government is currently working to finalise details of the scheme and the consultation response is a useful overview of its plans, which include the use of a restrictive covenant against the title to the property to ensure the discount is passed on and mortgagee protection provisions. There will also be household income caps in order to qualify (£80,000 across England but £90,000 in London) and price caps on eligible properties (£250,000 across England but £420,000 in London after the discount has been applied). The Local Planning Authority can set lower caps for the first three months. There will be a requirement that mortgage finance or a home purchase plan covers at least 50% of the purchase price. The response acknowledges that the First Homes scheme will need to transition between the existing system and the system envisaged by the White Paper.

• Launched a consultation document on:

  • how local housing needs are assessed;
  • securing First Homes through developer contributions in the short term until the transition to a new system;
  • supporting small and medium-sized builders by temporarily lifting the small sites threshold below which developers do not need to contribute to affordable housing; and
  • extending the current Permission in Principle to major development.

This consultation runs until 1 October 2020.

• Launched a call for evidence on data on land control. The call for evidence relates to the Government's commitment to improve the transparency of contractual arrangements such as rights of pre-emption, options and conditional contracts which are used to control land. It considers that holders of options and parties to conditional contracts carry similar social responsibilities to land owners and therefore should be subject to a similar level of disclosure. Currently such interests may be protected by entry of a notice and/or a restriction on the registered title to the affected property. However, detailed information in relation to the transaction is not required.

  The Government considers that the lack of data on contractual controls is leading to a market failure. It states that, without data on who controls land, communities cannot fully understand the likely path of development and there is a barrier to entry for small builders and new market participants. The Government believes greater transparency is in the public interest and would also improve the development process for planners and developers. The Government also suggests that a new contractual controls dataset will enable the PropTech sector to create tools and applications to reduce the time and cost of site identification and assessment by local planning authorities and developers (which will in turn assist smaller businesses).

  The Government therefore wishes to collect additional data that 'will allow the public to easily understand what land is subject to a contractual control, who is the beneficiary of that control and on what terms control is exercised'. It proposes to adapt the existing agreed notice system to collect this information and is specifically targeting development land. Unilateral notices would no longer be available for these types of agreement. As arrangements may last for some time, it is considering updating requirements (which may apply to some existing agreements). Protection may be lost if updates are not submitted. The Government is also consulting on making notification mandatory and ensuring people do not bypass the notice requirements by looking instead to a restriction.

  As the public interest lies mainly in land that could be used for development, the Government does not propose collecting data on an individual's contractual arrangements or rights relating to the purchase or lease of a domestic residence, testamentary options or statutory rights.

  Implementation of the proposals would require primary and secondary legislation to expand the functions of HMLR to collect additional data on certain types of interest, to introduce new requirements around the use of notices, and to provide a statutory definition of contractual controls. The proposals would not extend to Wales without consultation and the consent of the Welsh Government.