The Prime Minister has warned developers who are too slow to build houses that their past record could count against them when they bid for new planning permissions.
Saying “I expect developers to do their duty to Britain and build the homes our country needs,” Theresa May also highlighted the “perverse incentive” in the bonus structure of some house builders which does not encourage them to build homes that are affordable.
In a speech in London, the PM claimed the government is “rewriting the rules on planning” to help developers and local authorities build more properties – restoring the dream of home ownership.
May said that “for decades this country has failed to build enough of the right homes in the right places”.
She added: “In much of the country, housing is so unaffordable that millions of people who would reasonably expect to buy their own home are unable to do so” and the “failure to match demand with supply really began to push prices upwards”, and “higher prices brought with them higher rents”.
“The result is a vicious circle from which most people can only escape with help from the Bank of Mum and Dad. If you’re not lucky enough to have such support, the door to home ownership is all too often locked and barred.”
May also said that, along with developers, councils also need to ensure local communities are at the heart of the process and they know what infrastructure they will be getting and when. Developers and councils need to work together to meet their communities’ needs in a more joined up way, she said.
The Prime Minister urged councils to “do all they can to find sites, grant planning permissions and build homes” including through adopting a new nationwide standard that shows how many homes authorities need to plan for in their area.
She said: “our new rules will also see to it that the right infrastructure is in place to support such developments” and the planning changes will also allow more affordable homes prioritised for key workers, including nurses, teachers, and firefighters, and the PM is today enabling local authorities to prioritise these workers.
However, Lord Porter, who leads the Conservative-led Local Government Association (LGA), hit back at May, saying: “In the last year, councils and their communities granted nearly twice as many planning permissions as the number of new homes that were completed. Councils approved more than 321,000 new homes in 2016/17, while there were around 183,000 new homes added in the same year. More than423,000 homes with planning permission are still waiting to be built.
“The truth is that councils are currently approving nine in 10 planning applications, which shows that the planning system is working well and is not a barrier to building. Nearly three-quarters (73%) of planning refusals are upheld on appeal, vindicating councils’ original decisions.
“It is completely wrong, therefore, to suggest the country’s failure to build the housing it desperately needs is down to councils. The threat of stripping councils of their rights to decide where homes are built is unhelpful and misguided.”