Developers face ‘serious frustrations’ with planning system

Developers face 'serious frustrations' with planning system



The Federation of Master Builders (FMB) has told Development Finance Today that developers are suffering endless delays in getting planning approved.


Brian Berry, Chief Executive of FMB said, for smaller developers, the cost and time taken in obtaining permissions for developments could be quite disproportionate. 

“Developers face a number of serious frustrations with the planning system.

“Chronic under-resourcing is at the root of many of these problems, but so too is lack of accountability, and in some places, a jobsworth culture. 

“In order to speed up house building we need to see an adequately resourced system, but also more a streamlined, proportionate application process, and more innovations like the government’s proposed permission in principle consent for small sites (similar to an old ‘redline’ application) which can reduce the risk of bringing forward applications.”

James Bloom, Chief Executive of Regentsmead has made a number of practical suggestions to the government which he hoped they would take on board, but admitted he was sceptical. 

“The current planning system is very cumbersome and gives no degree of certainty which is a major problem, particularly for the smaller developer. 

“We were consulted by a government department last year in respect of proposed planning changes, which included a possible new type of planning prior to getting outline. 

“We explained to the government that this would only work if it was not subject to all of the current issues borrowers have to deal with before they can get the planning.”

John Waddicker, Director at Positive Commercial Finance added: “Councils up and own the land have set processes and timescales for each stage, and in my experience, they seem a bit excessive. 

“As a broker, we see a variety of cases for different uses, purposes and size, but most councils still have just one process for all - which obviously doesn't fit with the commercial world. 

"Then, if anything needs to be re-considered virtually the whole process starts again, which can be extremely frustrating for brokers, lenders and the client.”

Scott Marshall, Director at Roma Finance added: “The issues we've had in the past are mainly around the speed of decision making, the inconsistency in decisions made by different councils and the delays issuing completion certificates.

“This means that there is still a lot of uncertainty which can affect a project and ultimately extend the timeframe of a development.”

John added that these inconsistencies can be “extremely frustrating” for brokers, lenders and the client, as delays can put the whole project in jeopardy. 

“After all, when land is bought and architect plans are drawn up, the clock is ticking - and that includes on the budget as well. 

“So I think more understanding of how developers work and their financial commitment to a build should be acknowledged far more by councils and their processes adjusted accordingly."

James concluded by adding: “Until councils have true financial incentives and targets, planning is unlikely to ever truly reform. 

It certainly needs to be reviewed and changes must be made if this cumbersome and expensive process is to improve.”



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