Measure allowing developers to 'roll forward' planning permissions to be scrapped

Boles said that new rules will require developers to reapply for planning permission if building work does not start within the allocated time set by the local authority. He said this would incentivise developers to start on site before permission expires as part of a Coalition drive to accelerate construction and prevent 'land banking' where developers hold on to sites whilst waiting for the value to rise.

The Labour Government brought in the measure allowing developers to extend planning permissions in 2008. Boles said that the measure was "always intended to be temporary". "As the economy improves, the focus must be on accelerating the number of homes being built to meet demand,” he said.  

According to the report, official figures have shown that there are currently 507,000 sites with planning permission and that building work has yet to start on more than 257,000 of them.

The Institute of Directors director general Simon Walker said that he believed the change was an attempt to "undermine the ability of developers to complete projects" and it would risk fewer homes being built as a result.

“Obtaining permission, particularly for large projects, is a very expensive and time-consuming process,” Walker said. “If builders do not have certainty that they will be able to use the land when they are ready to do so, it seems likely that it will deter some from applying in the first place.”

Last month local government think tank Localis published a report recommending that the Government should introduce powers to allow councils to revoke planning permissions or set a shorter default validity period for permissions to prevent land banking.