New planning regulations hailed a lifeline for construction sector

NEW planning regulations, which make it possible for developers to extend the time limits for existing applications and make amendments, are being hailed a lifeline for the construction industry.

For a one off fee – proposed to be between £50 and £500 depending on the size of the scheme – developers can apply to their local authority for an extension of up to three years on existing permissions.

The rules, which come into effect today, apply to all developments including those with listed building and conservation area consents.

While applicants will be required to submit new paperwork they will not need to submit a new design, access statement, plans or drawings.

However, the new fees will not come into play until Parliament returns later this month. In the meantime a standard planning application fee will apply and it is yet to be confirmed if applicants will be refunded on this cost.

For developers the extension will also provide comfort to the banks and funders who are invested in sites that have no immediate prospect of completion.

According to Michael Pocock, planning specialist at DLA Piper’s Sheffield office, the new legislation could throw a lifeline to developers facing D-day on their planning permissions by offering an extension on existing agreements on develpments that have not yet started but for which planning permission was granted on or before October 1.

“For the developers struggling to make ends meet, the prospect of planning permissions for sites expiring before work has even begun and the associated cost of reapplying has added insult to an already expensive injury,” he said.

“The move is designed to encourage developers to remain invested in sites despite the current market conditions, and will have the added benefit of keeping projects in our region in progress – albeit at a slower than ideal rate.”

Mr Pocock added that the change will have come too late for many developments whose permissions have already lapsed or where development has already started but is proving financially unviable.

He continued: “However, such reprieves will help keep the wolf from the door for many and allow developers some much needed breathing space on existing sites that are still forecasting a strong return and will go a long way to enabling the industry to plan for and ideally take advantage of an eventual recovery in the market.”

James Podesta, senior planner at CB Richard Ellis, said the new regulations were help increase activity in Yorkshire’s development pipeline.

“Prior to this change in regulations, if planning permissions were not implemented within what was usually a three-year time frame, the permission would subsequently lapse and this all added to developers’ costs and presented considerable delays and uncertainty, making it more difficult to help deliver the Government’s challenging house building targets,” he said.

“If developers wanted to proceed on a scheme where planning had lapsed, the application process would have to start again and developers would have to submit a new planning application for lapsed schemes which in addition to delaying development further, also comes at an additional cost at a time when the viability of schemes is so fragile.”