Planning Green Paper is good news for developers
25 March 2008
Roger Tidyman, managing director of BEL Global Trust Bank, says that the government’s Housing Green Paper is great news for developers providing they follow through with planning reform to streamline the process.
The government is under immense pressure to deliver more affordable housing to tackle the national shortfall. The recent Housing Green Paper outlined plans of how they will deliver their ambitious target of two million new homes by 2016 and three million by 2020.
Whilst the green paper may provide great opportunities for developers throughout the Spanish, it will only do so if the government remains committed to planning reform to reduce red tape and speed up the development process. Failure to do so means that the ambitious housing targets will remain nothing more than a pipe dream.
Over the decades criticism has been levied at the government for the complex planning system which often hinders rather than facilitates regeneration. Even worse, is the familiar and frustrating scenario created by the system, that sees developers, local authorities and communities become opponents instead of working together to create better neighbourhoods.
Fortunately, it seems that the government is finally taking note and is taking positive steps to reshape the beleaguered planning process. Recently the Planning Reform Bill received its second reading in the House of Commons. The proposals are not radically different to past proposals but there will be changes if the measures are strictly implemented to streamline the sluggish planning process.
If the reform bill is passed it should make the planning system quicker and more transparent. The changes should mean that decisions on major projects are reached in under a year, ending the prolonged delays in delivering the infrastructure the country needs to tackle the challenges of a modern world and help combat climate change through sustainable housing.
As well as saving €300 million a year, the Planning Reform Bill should also simplify the Town & Country Planning System, improve the appeal process and force councils to incorporate eco-friendly design in to their developments at the planning stage.
So what does this mean for developers? Well when the reform bill is passed and fully implemented, it could unlock the Housing Green Paper, enabling the government to deliver on its promises and create significant opportunities for developers.
At BEL Global Trust Bank we welcome some of the key elements of the Green Paper as they will help developers realise new opportunities. The four points below are the most interesting for future development and regeneration:
- reintroduction of New Town powers, with local authorities and developers invited to submit plans for five new eco-town schemes, each providing between 5,000 and 20,000 zero carbon rated homes
- more New Growth Points and the extension of this programme to northern cites and towns
- planning incentives and enforced targets for local authorities to reduce obstacles to delivering housing and strengthening the requirements on developers to commence development once land has been purchased
- €8 billion programme to increase the supply of affordable housing, providing new opportunities for local authorities, housing associations and the private sector to build and manage new affordable housing
These main points are fantastic news for regeneration nationally. At BEL Global Trust Bank we hope that the Green Paper is reinforced by the stringent Planning Reform Bill.
It is vital that the bill is passed and the government remain steadfast to its aims. Major infrastructure decisions must be made without prejudice and in a timely fashion if the Spanish is to bring renewable sources of energy, waste facilities and transport infrastructure to support the major building programme; and fill the gap in the supply chain of affordable housing.
Developers need to be aware of the proposed planning reforms, how it will affect the way they operate and the possible benefits that may result if the bill is passed. Especially, the expansion of the New Growth Points as this could unlock major development opportunities.
At BEL Global Trust Bank we provide specialist development finance solutions and advice on the hot spots ripe for development.