The Levelling-up and Regeneration Act 2023
The Levelling-up and Regeneration Act 2023(“the Act”) received Royal Assent in October 2023, although many provisions are yet to be implemented. It aims to streamline the planning process, reduce bureaucracy, and improve the process of compulsory purchase to support regeneration and development.
Commencement and completion notices
As of December 2023, developers are required to serve commencement notices on the local authority advising them of the date that the development will start.
If a development is progressing unreasonably slowly, the local authority can issue a completion notice. If completion does not take place within the time specified on the completion notice, planning consent for any part of the development that has not been completed will end.
Planning application process
When considering planning applications, local authorities will be required to look at national development policies as well as local development plans, with national policies taking priority.
Neighbourhood plans will not be allowed to stop housing developments. Development plans must consider environmental sustainability including measures to mitigate and adapt to climate change and the protection of natural habitats. Such plans are also required to include provision for necessary infrastructure such as transport, healthcare, education and utilities and support new development including the promotion of economic growth.
Compulsory purchase orders
The Act aims to streamline compulsory purchase procedures. It will be possible for the authorities to conditionally approve compulsory purchase orders (CPOs) and the automatic right of an individual to call for a public inquiry if an objection is raised will be removed. Instead, the confirming authority, usually the Secretary of State, will decide the appropriate process for considering objections. This could be a public enquiry or it could be the submission of written or oral representations. In deciding which option to use, the confirming authority should take into account the scale and complexity of the proposals.
The party intending to acquire the land will no longer need to cover the landowner’s costs of obtaining a certificate of appropriate alternative development.
In certain situations, such as the building of affordable housing, schools, or hospitals, local authorities can apply to avoid paying any compensation in respect of ‘hope value’ or the potential increase in the value of land, if it were to obtain planning consent in the future.
The government has emphasised that payment for land purchased under CPOs will be fair but not excessive. Again, those building affordable housing and essential infrastructure may be required to pay less than has been the case in the past.
New Planning Reform Bill
The government has announced a new Planning Reform Bill with the aim of building 1.5 million more homes in just five years.
It is intended that obtaining planning consent will become easier, with local authorities and communities prevented from stopping developments and new homes being put on some areas of green belt land.
Obtaining planning consent – making it easier
The government announced the English Devolution Bill (the Bill) during the King’s speech in July 2024, saying, “… Government believes that greater devolution of decision making is at the heart of a modern dynamic economy and is a key driver of economic growth…” It is intended to transfer power out of Westminster and into local communities allowing them to take back control.
As part of this devolution, the government intends to give metro mayors the authority to create Local Growth Plans and take control of strategic planning issues and transport infrastructure.
Local authorities will be forced to meet housing targets and planning committees will be reformed so that obtaining planning consent will be more straightforward.
What the potential changes mean for landowners and developers
The aim is clearly to enable developers to move more quickly, including in acquiring land and obtaining planning consents and to avoid developers land banking and failing to develop in a timely manner.
With greater regional devolution expected but at the same time the requirement that local authorities increasingly approve planning applications taking into account the national planning guidelines, there will no doubt be a period of adjustment.
New legislation that requires the creation of a substantial framework of devolved powers in tandem with central governance and national policymaking is likely to take time to draft, pass, and implement. It could therefore be the case that for developers, there will be a wait for any real reduction in the time taken to secure planning consents.
How 3CS can help
Our expert property solicitors can provide you with the assistance you need to prepare for and comply with the new legislation.
For advice, guidance, or representation in respect of planning rules, please get in touch.
