3 February: New analysis of housing planning times unveiled

National Housing and Planning Advice Unit

NHPAU-commissioned report finds high degree of variability in time taken to get planning consent

New evidence has been revealed about the how long it takes to get planning consent for major housing sites in England and the factors which tend to be linked to longer or shorter approval times. The study is the largest of its kind.

The findings come in Housing supply and planning controls - the impact of planning control processing times on housing supply in England. The study of sites approved for major residential housing* was commissioned by the National Housing and Planning Advice Unit (NHPAU), the country's foremost advisory body on housing affordability and the planning delivery system for housing. It is the latest report from the NHPAU designed to aid understanding of how England's planning and delivery system for housing works.

The report highlights an average determination period for the sites analysed of 43 weeks. The study finds that differences in development control times take place within each local authority and that variability appears to be a feature of the development control system overall.

The research also identifies that:

Development control time increases with the size of development (measured by number of homes) but overall takes less time per dwelling built. Time is not affected by other scheme features.
Trophy or prestige projects, as well as social housing schemes, tend to go through development control faster than others.
The development control process takes longer in more affluent localities and where there are hung councils.

The report concludes that uncertainty in time taken to process applications has significant implications for housing supply. It argues that long determination periods "will inevitably discourage investment in bringing forward new sites in the period following a recession, as developers will want to be certain that a strong recovery is under way before they make any such lengthy commitment."

Neil McDonald, Chief Executive of the NHPAU, said:

"There is a lot of anecdote and assertion about how long planning approval takes and why some sites take longer than others. This study provides hard evidence to enable us to have a much better understanding of the variability in approval times. It deserves careful consideration by all involved in planning for housing.

"A key aim for the NHPAU is to help local and regional authorities make the planning delivery system for housing work. We do not pretend to have all the answers but by providing new, robust evidence of the factors in play we can help ensure that the system is better able to respond to demand and deliver sufficient housing of the right type and in the right location, when we need it.

"Communities and Local Government has recently responded to the Killian Pretty Review of the planning system and the National Audit Office study of planning applications. Last month it began a consultation on the establishment of a new planning policy statement on development management. Our study is relevant to this process and we will be discussing its findings with key players at local, regional, and national level."

Housing supply and planning controls - the impact of planning control processing times on housing supply in England, is available at www.communities.gov.uk/nhpau/keypublications/research/.

* Reading University collected data on over 900 sites, approved for major residential housing in 2005-2006, in 45 English local authorities. The research focused on sites, rather than planning applications, as it is sites which generate housing and will be managed through to development. It covered only sites where applications were granted rather than ultimately refused.

For further information contact Graeme Buck/Robert Day, Camargue, tel 020 7636 7366.

Notes to editors

1. Housing supply and planning controls

Housing supply and planning controls - the impact of planning control processing times on housing supply in England was produced by Reading University for the NHPAU; the study was led by Professor Michael Ball, Professor of Urban and Property Economics at the University's Centre for Real Estate Research. It is relevant to both the Killian Pretty Review and the recent National Audit Office study of planning applications.

Reading University analysed over 900 sites, approved for major residential housing development (10 or more new dwellings) during 2005-2006, across 45 local authorities in England. The sites were chosen to provide a mix of areas and included Birmingham, Bristol, Leeds and Manchester as well as London boroughs, commuter locations and rural areas. The bias of the sample was set towards London and the south as that is where it is believed that planning pressures are the greatest.

Since 2005/06 the Government has introduced reforms intended to streamline the planning system. These include:

i.) proposals to ensure councils and developers work together before applications are submitted, and that the number of conditions applied to planning permissions is reduced;
ii.) proposals to address the performance of agencies and other key bodies in the planning process so they are involved in the process earlier;
iii.) enabling existing planning permissions to be renewed before they expire, allowing a longer period for implementation;
iv.) stopping the need for a full planning application for small-scale commercial schemes;
v.) cutting the amount of information required for planning applications;
vi.) changing the appeals service so it is more customer focused and efficient; and
vii.) proposals that will allow homeowners, developers and businesses to install their own on-site wind turbines, and air source heat pumps without planning permission.

2. About the NHPAU

The NHPAU is an independent body launched in 2007 to help make homes more affordable across England. It is the leading organisation advising on housing supply, affordability and the planning delivery system for housing. It comprises some of the country's leading experts in the housing field who provide guidance to local, regional and national bodies on what homes need to be provide where, and when.

Since April 2007, planners and government have to consider affordability when deciding future housing supply. The NHPAU advises them on the implications of different levels of supply and how many homes would need to be built to make a positive impact on housing affordability.

The Unit is chaired by Dr Peter Williams, an independent consultant on housing and mortgage markets. He was previously Deputy Director General of the Council of Mortgage Lenders.

2. Why the NHPAU was created

1. Economist Kate Barker's Review of Housing Supply in 2004 identified that the demand for housing is outpacing supply, and this is pushing up prices. To make housing more affordable enough new homes must be built in the right places, of the right type and at the right time, to meet demand.

2. Between 1997 and 2007 average earnings increased by 45 per cent (Source: ASHE, ONS) while the average house price increased by 171 per cent (Source: Communities and Local Government from Land Registry Data). The ratio of lower quartile house prices to earnings doubled in the same period.

3. Despite the recession, for most people housing has not become more affordable in any real sense because mortgages are harder to secure and bigger deposits are required.

4. Barker's review produced a series of recommendations about improving the supply of housing in England. This included the creation of a body to provide expert advice on housing matters, particularly affordability. The NHPAU is the result.