Following an application procedure, areas within 17 local authorities were granted exemption from the new permitted development rights which came into force on 30 May, including the Central Activities Zone (CAZ) and Tech City in London, as well as areas in the Isle of Dogs and the Royal Docks Enterprise Zone.
The London Boroughs of Islington, Camden, Richmond upon Thames and Lambeth, which all applied but were not exempted from the rights, applied for permission to judicially review the procedure in determining the applications for exemptions with the view of having their refused applications reconsidered.
Islington Council said in a statement that the policy change would "seriously undermine" its future economic prospects. It said that councils will not be able to ensure that new housing created without planning permission is of adequate quality and secure any affordable housing for local residents.
The judge said that, if he were to order a reconsideration of the applications, the councils would need to consider the position for landowners in the interim, according to a report by Estates Gazette.
According to the report the judge granted permission to seek judicial review at the start of the rolled-up hearing, but will reserve judgment on whether to allow it.