Jonathan Parker is development director at framework provider Pagabo
The newly elected government’s long-needed planning reforms, with their focus on unlocking development and setting housing targets, have been met with widespread approval. But planning reform is just the start, and development needs to look beyond new homes to wider town and city placemaking if it is to make a difference.
By unblocking the planning process, the reforms aim to expedite development projects – an eagerly anticipated move by many. The announcement of more than 300 new planners for departments across the country is another promising step. However, the specifics of their deployment and training remain to be detailed; this will determine how quickly their impact will be felt.
“The answer lies in holistic development that includes both social housing and commercial assets”
While planning reform is a crucial element of successful future development, it is one piece of a much larger puzzle. Addressing the housing crisis requires a comprehensive approach. And although planning reform can streamline timescales, it does not address the underlying issues once projects move beyond the planning stage.
The focus on housing was always going to be a headline item for the winning party. The model of setting housing targets – especially mandatory ones – is driven by people moving from rental properties and into homeownership. This creates a natural emphasis on the construction of new homes. For many developers, it places an emphasis on maximising their profits – but this model risks overshadowing the critical need for social and affordable housing, while diverting resources away from social housing.
There is also the topic of converting existing buildings into new homes to consider, to assist with regeneration and the decarbonisation of the UK’s building stock.
Faced with inadequate funding, local authorities may be forced to sell land to developers, which are less likely to prioritise social housing due to its lower profit return.
To address the issues, a fair and equitable allocation of funding will be absolutely essential, whether through levelling-up initiatives, infrastructure investments or other financial support. Such funding must be distributed fairly across the country and weighted to where it is needed the most, to benefit the maximum number of people.
The right approach
But how should local authorities be proceeding with all of this in mind? The answer lies in adopting a place-based approach, focusing on holistic development that includes both social housing and commercial assets. Successful examples of such development demonstrate significant benefits – both in terms of economy and social value.
Given the varied nature of local authority assets, some of which may be small, less practical or even stranded, a place-based strategy offers a more comprehensive outcome for communities and businesses. Collaborative regeneration schemes, where local authorities partner with developers, can yield better commercial and social returns on investment – and indeed they are growing in number across the country.
For local authorities, choosing the development partners wisely will be the key to overall success, so a compliant and secure procurement process is highly recommended. This provides the local authority with the developer most suited to make the partnership a success. But it also comes with the added compliance and transparency that proper procurement processes provide – and indeed are championed even more in the forthcoming Procurement Act.
Planning reform will undoubtedly help all of those schemes coming down the pipeline, with the changes announced by the chancellor being a positive start. But it is just the start. The ultimate goal is to improve towns and cities around the country, creating suitable housing opportunities, while boosting local economies and enhancing social value. The journey ahead requires a concerted effort to ensure that these reforms work with funding and other incoming policies, and lead to sustainable, long-term improvements in communities nationwide.
