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“Planning denial” is a fascinating phenomenon.
Somehow people think the system — which rules out building in most places and takes an average of five years to approve applications — is in no way responsible for a shortage of housing.
Somehow people think the system — which rules out building in most places and takes an average of five years to approve applications — is in no way responsible for a shortage of housing.
The denial is based on the fraudulent ideas (1) most applications are accepted (90%) and (2) developers aren’t using all available permissions (1 million unbuilt houses).
But (1) just because most applications are accepted — after much delay and usually with fewer than proposed homes — doesn’t account for the applications we never see.
There are millions of homes that aren’t built because there’s no point applying in the first place.
There are millions of homes that aren’t built because there’s no point applying in the first place.
(2) the existence of unused permissions is a symptom of the failure of the system, not a sign of its success.
Firstly, these permissions are often not where people most want to live — meaning they can’t solve the housing crisis.
Firstly, these permissions are often not where people most want to live — meaning they can’t solve the housing crisis.
Secondly, builders have to apply for lots of permissions to ensure a pipeline of potential developments. The system means means they apply early and “bank” land for later years.
They can then hold onto the permissions, safe in the knowledge a competitor would have to take 5 years to get nearby permissions to build competing houses.
So if you want to create a strong incentive for land to be built on you need to get rid of the crummy system that has created an uncompetitive market that means house builders “bank” their land.
You also need to create certainty, so that a builder can quickly swoop into build on an unused piece of land in a high growth area.
@RobertJenrick’s proposals do just this: locals can set design codes and areas for “growth”. If you meet the general guidelines you can build.
This will create the certainty to allow for more building, the key cause of the housing crisis.
This will create the certainty to allow for more building, the key cause of the housing crisis.
It will also create competitive pressures to solve “land banking” since (1) no need to secure a pipeline due to uncertain planning process; (2) someone could always come in and build nearby your land (if it’s in a growth area) so you better do it first.
