The plans were announced in last week's summer budget. The budget was closely followed by the publication of a Productivity Plan 'Fixing the foundations: creating a more prosperous nation' which sets out a series of measures to speed up the planning process and accelerate the building of homes.
The government is encouraging development around major commuter transport hubs to increase large scale housing projects. The Productivity Plan states that the government "will consider how policy can support higher density housing around key commuter hubs" and "how national policy and guidance can ensure that unneeded commercial land can be released for housing." The chancellor hopes to use the experience from regenerating the areas surrounding Kings Cross Station and Stratford Station, according to the plan.
A dedicated body will be established to help accelerate the release of public sector land and maximise the benefits of station regeneration, according to the budget. A recent report in The Times by estate agency Hamptons International (registration required) specified that regeneration around stations located in greenbelt land could also be used to provide more homes with the “potential of 213,000 new homes in Greater London green belt.”
The mayor of London, Boris Johnson, has previously set a target of building 42,000 new homes per year over the next 20 years. Osborne and Johnson recently announced that £400 million would be used to help fund 20 housing zones on brownfield sites.
To help reach this target, the government is consulting to devolve more powers to the mayor of London. The government confirmed its intention "to proceed with devolution of wharves and sightlines" and how a proposal for the mayor of London to "call in planning applications of 50 homes or more" will be brought forward. This will enable the mayor of London to support more housing development projects and help meet London's demand for housing.
As part of Johnson's strategy to boost housing supply, a further proposal is to speed up the planning process for upward extensions. This will "remove the need for planning permission for upward extensions for a limited number of stories up to the height of an adjoining building", according to the document. If a neighbouring resident objects, a planning application will be required in the usual way but with a focus on the impact on the amenity to neighbours. "Helping London 'build up' in this way will reduce the need to 'build out', helping to provide homes for Londoners while protecting the countryside," the document said.
Planning expert Victoria Lindsay of Pinsent Masons, the law firm behind Out-Law.com, said: “The Conservative party is clearly motoring on with changes to help implement its manifesto pledge to deliver large scale housing developments. This is particularly needed in and around London to meet housing targets and to utilise land near strategic transport commuter hubs to encourage housing development to come forward in a timely manner."
"How frequently the mayor will wish to use his new powers is a key issue. Overall, the government needs to balance boosting productivity at a central level with delivering Mayoral devolution and still delivering its localism agenda at a local authority and neighbourhood level. This is no easy task. The further targets and sanctions for councils that do not deal with applications or local plans expediently illustrate the pressure which the government wishes to bring to bear. However, are there sufficient public sector resources at any level – central government, planning inspectorate, GLA or London Borough to deliver? There are a number of years of more public sector cuts to come and it is often the ability to resource speedy decision-making which is the issue. Further thought is needed from government in this respect,” she said.