Policy changes could thwart the 300,000 new homes target

A new housing planning framework which was published by the government on the final day of the Parliamentary session could prevent developers from hitting the target of building 300,000 new homes per year, according to Birmingham based commercial property consultancy, Lambert Smith Hampton (LSH).

The revised National Planning Policy Framework (NPPF) moves the policy emphasis on viability testing for proposed developments to the local planning stage which will have an impact on the delivery of new homes.

Steve Hemming, regional head of planning and development at LSH’s Birmingham office said: “Our take on the new framework is that it includes some interesting ideas and features that will help overall housing delivery. However, there are some measures that may impact the desired delivery of 300,000 new homes per year by the mid 2020s including shifting the policy emphasis on viability testing to the local planning stage.

“Property insiders have been seeking more certainty regarding viability testing for some time but instant implementation may be difficult pill to swallow. This is because it will have a short term impact on housing delivery off set against greater certainty for developers in the future on the level of affordable housing that must be completed.”

The NPPF means that the viability test and development control criteria are now based on a master plan approach and not exclusively on individual sites. This means that house builders must take into the relevant Local Plan for affordable housing when purchasing development land.

Hemming added:”This inevitably may effect developers sitting on large land banks where high prices may have been paid for sites on the basis that affordable numbers could be reduced. With this window now shutting some sites may stand empty for some time yet. Given these changes and the uncertain market it’s likely that last years’;level of housing delivery may be a high water mark for several years to come.”