Planning, building and the environment

John Healey: Action to help developers during downturn and build greener buildings

Published	18 June 2009

Developers will be given more time to start building and further flexibility to adapt plans, under a package of new measures announced by Housing Minister John Healey today to support the industry during these tough economic times. Mr Healey also announced changes for developers to build to greener standards, making homes cheaper to heat and run.

There has been a sharp drop-off in the number of permissions which are being taken up, so for a temporary period, a simpler and cheaper way of extending the life of planning consent is being introduced. Currently, permissions that are not used expire automatically - usually after three years. If developments can't be built because of economic conditions it could delay economic recovery, as those schemes would have to be reapplied for when conditions pick up.

He also spoke about important measures to simplify the system - making it easier to apply for planning permission in the first place. This included giving local authorities the freedom to make changes to large developments and town centres by using Local Development Orders (LDOs). The LDOs will make it easier to for developers and councils to find new uses for empty shops on the high street and expand businesses and industrial estates. During the speech, it was announced that Government will fund up to 12 local authorities to create LDOs, working with the Planning Advisory Service.

Mr Healey also launched a consultation on changes to the Building Regulations to deliver the first step towards zero carbon buildings and carbon savings of over 3 million tonnes a year from 2020. An important plank of the government's commitment to tackling climate change, the proposals would require a 25per cent improvement in energy efficiency standards for new homes and other buildings from October 2010. This will require better insulation and draught-proofing, better low-energy lighting and more efficient boilers. The higher energy efficiency standards will also mean lower fuel bills lower - by up to £100 a year for an average home.

In his speech to the Royal Town and Planning Institute in London, Mr Healey said:

"During the downturn, our first concern has been to act and invest to accelerate recovery. The Prime Minister has said that we'll do whatever it takes to see people through these tough times, keep companies in business and people in their homes. So today I'm announcing the power for local authorities to extend the time limits for existing planning permissions. This will help to make sure that more homes, offices and factories get built at a time when investing in new developments is difficult and when access to funding is hard. The changes also make it easier to apply for planning permission in the first place and give developers scope to make minor alterations without going back to the start of the application process, therefore saving time and money.

"We recognise development is difficult during the downturn, so we need to do what we can to cut out unnecessary bureaucracy and keep developments warm and keep plans on the table. And through LDOs and the funding for 12 pilot projects I'm announcing today, we're making it easier for councils to revive their high streets by finding new uses for empty shops or support other local businesses as they see fit.

"While it is right that we have taken action now to help people and businesses struggling with the economic downturn, we need to also stay focussed on the long term and step up action to tackle climate change.

"In the UK we know that nearly half of our carbon emissions come from our buildings, 27 per cent come from our homes and a further 17 per cent from other non domestic buildings. So we must build our homes to a better, greener standard. We are leading the way globally, with our ambitions for zero carbon homes and buildings.

"Today I have announced the next step towards zero carbon - a 25 per cent improvement on current standards for new homes or buildings from 2010. This consultation on changes to the Building Regulations means we are not only building to better standards, but making homes cheaper to heat and run for the families living in them. It could mean savings of up to £100 a year for an average home.

"These measures demonstrate that we have listened to the needs of people, councils, industry and developers and are taking practical action that will make a real difference to communities across the country."

The LGA, the British Property Federation (BPF) and the CBI have all called for local authorities to have the power to extend the time limits for existing planning permissions without the need for a completely fresh application.

Mr Healey launched the consultation on changes to Building Regulations and the consultation paper Greater Flexibility for Planning Permissions at his first keynote speech to delegates at the three-day conference, Planning in Changing Climate, at the RTPI in London on Thursday 18 June.

The Government will also be making the process of preparing Local Development Orders (LDOs) simpler. LDOs allow local authorities the opportunity to permit small-scale development without the need for planning permission to meet local needs more effectively.

The Department is already taking great strides in making it easier for businesses to apply for their initial planning permission. Work is ongoing to streamline the national planning policy framework, which will lead to greater clarity for business. Other departmental policies (such as taking forward recommendations from the Killian Pretty review) will also ensure that the burden of planning on business is minimised.

Martin Willey, President of the Royal Town Planning Institute said:

"There is no choice regarding the need to address climate change- the consequences of not acting now are unacceptable. The planning process provides an immediate and positive mechanism to deliver change, and to grow the green economy. Planners are at the forefront of taking real action to reduce carbon emissions and the RTPI's Seven Commitments set out how we can achieve this. We are pleased that John Healey has recognised the vital importance of tackling climate change and of recognising the importance of preparing the planning system for the upturn."

Notes to editors

1. Housing Minister John Healey made the speech at the RTPI after a parliamentary statement was laid, on Thursday 18 June. The statement detailed the consultation document, Greater Flexibility for Planning Permissions, which concerns proposals to provide greater flexibility for developers to implement planning permissions in ways that allow them to respond more quickly to changing market conditions. It noted that there has been growing consensus between local planning authorities and developers that there needs to be a faster and more proportionate way of amending schemes or the timescales for their delivery. The paper outlines a number of measures, which do not require primary legislation and therefore can be implemented quickly, mainly in the autumn.

2. The proposals on greater flexibility for planning permissions would allow developers to respond more quickly to changing market conditions. The paper outlines a number of measures, which do not require primary legislation and therefore can be implemented later this year. Key proposals include:

Extension of the time limits for implementation of existing planning permissions - this introduces a new category of planning application, which would allow developers to extend the time limits within which the development must be commenced. Most permissions granted since 2004 have a condition requiring the development to start within three years. Current economic circumstances have led to a dramatic fall in the take-up of permissions. If these permissions lapse, it could delay recovery as we come out of recession - because developers would have to reapply, which has cost and time implications for both the developer and the local planning authority. This proposal would allow local authorities to extend the period for implementation through a simple and quick process. It is intended to be a temporary measure.
Minor material amendments to planning permissions - at present, when a developer wants to make a small, but material, change to a scheme that already has planning permission, it is often necessary to submit a further full planning application, which leads to considerable delay, cost and uncertainty for the applicant and additional work for the local planning authority. The Killian Pretty Review - Planning Applications: A Faster and More Responsive System recommended that the Government explores whether a more proportionate approach could be identified. A quick win would be to encourage the greater use of an existing legislative tool which provides developers an opportunity to change the terms of one condition attached to a permission, rather than the planning permission as a whole. The consultation paper aims to streamline the process of varying conditions and seeks initial views on more substantive changes which would require primary legislation.
Non-material amendments to planning permissions - consult on changes to secondary legislation necessary to bring into effect a measure in the Planning Act 2008 which provides a simple and quick mechanism for making non-material amendments to planning permissions. Recent case law had been interpreted by many as restricting the potential for developers and planning authorities to agree even the most minor changes to permission, so this change, once fully implemented, will ensure there is a legal basis for doing so.

3. The consultation on changes to the Building Regulations sets out proposed changes to Part L (Conservation of Fuel and Power) and Part F (Means of Ventilation) that are due to come into force in October 2010. For Part L, it proposes changes to the regulations and technical guidance to improve the energy efficiency of new buildings, as well as a range of measures designed to improve the level of compliance and performance, building upon action already taken. The changes to Part F are also proposed to ensure there is suitable ventilation in buildings.

4. The Government set out in its Building a Greener Future - Policy Statement (July 2007) that new homes will be net zero carbon from 2016. This is to be achieved in steps, with improvements on 2006 standards of 25 per cent in 2010 and 44 per cent in 2013. The Government also wants to reduce the carbon emissions from new non-domestic buildings, and in its 2008 Budget announced an ambition for all new non-domestic development to be net zero carbon from 2019. The consultation also sets out proposals for the tightening of existing standards for some building services and elements (eg boilers, windows) for new buildings and for when they are replaced in existing buildings.

5. The annual reduction in carbon emissions in 2020 resulting from the changes proposed in the consultation would be 3.3 million tonnes, with contributions as follows:

Construction of new dwellings                                                                  0.1
MtC
Construction of new non-domestic buildings                                               0.3
MtC
Installation of new and replacement of existing boilers etc                          2.9
MtC

6. PPS4- Planning for Prosperous Economies (out for consultation until 28 July 2009) recognises that business needs certainty and simplicity. We are currently consulting on draft Planning Policy Statement on Planning for Prosperous Economies which will bring together in one place all of the Government's key planning policies relating to the economy in both urban and rural areas into one place and streamlining them to focus only on key policies. This will create a modern set of policies designed to meet the challenges business and communities face both now and over the longer term. By presenting policies for economic development in an integrated way, the PPS will lead to greater certainty for business, particularly in terms of speedier decision taking on planning applications. Our policy is informed by many of the recommendations of the Killian Pretty Review and the Barker report preceding it, both of which advised that the planning system should be more responsive to the needs of business.

7. We have set aside funds to help up to 12 local authorities create LDOs, working with the Planning Advisory Service. They are already considering applications from a number of local authorities for small-scale start up funding for pilot LDOs. They have already offered funding for two schemes - in High Wycombe (to revive the high street) and, in East London, a partnership led by the London Development Agency to roll out a district heating system.

8. Local Development Orders were introduced in the Planning Act 2004 and allow local planning authorities the freedom to allow development and changes of use without the need for individual planning applications. We want to encourage their use by making their creation as simple as possible. Next week we will commence a provision from the Planning Act 2008 that will allow an LDO to be set up independent of the local development plan. Nor will local authorities need to obtain approval from the Secretary of State.

9. We have set aside funds to help up to 12 local authorities create LDOs, working with the Planning Advisory Service. They are already considering applications from a number of local authorities for small-scale start up funding for pilot LDOs. They have already offered funding for two schemes - in High Wycombe (to revive the high street) and, in East London, a partnership led by the London Development Agency to roll out a district heating system.