Accelerating Housing Delivery in London; is planning reform working

glhearn.com

Annual Planning Survey 2014

Accelerating Housing Delivery in London; is planning reform working

glhearn.com

Alastair Crowdy

National Head of Planning, Development & Regeneration, GL Hearn

Welcome

Agenda

• Setting the scene and findingsShaun Andrews, Head of London Strategy, GL Hearn

• The GLA responseRichard Blakeway, Deputy Mayor for Housing, Land and Property

• The private sector’s responseGary Yardley, Investment Director, Capco

• The local authority’s responseStephen Kelly, Regeneration, Planning and Development Directorate, Haringey Council

• Debate, conclusions and next stepsLiz Peace, Chief Executive, British Property Federation

@GL_Hearn #planningsurvey

glhearn.com

Shaun Andrews

Head of London Strategy, GL Hearn

Setting the scene and findings

In 2012 the market was subdued post-crash and the

NPPF had just been published


“We're introducing a presumption in favour of sustainable development. The new policy comes into effect when the NPPF is published next Tuesday. This is the biggest reduction in business red tape ever undertaken”

George Osborne, 2012 Budget Speech


71% of Applicants and 88% of LPAs believed NPPF would

lead to no change in development activity


Our goal was to fuel an open, factual and constructive debate during this critical

period


APS Survey 2014

215 Applicants

37 Local Planning Authorities

Conducted June – July 2014

Respondents across England

Major Applications 2014

London (33), Greater Manchester (10) and Greater Bristol (4)

FOI and manual search identified all major applications

Each application read and data collated


3,700+ applications reviewed and 500+ opinions canvassed

APS Survey:UK wide

Major Applications:Greater Bristol

2012 2013 2014

Major Applications:London

Major Applications:Greater Manchester

2011

* **NPPF


So in reality, what happened after Osborne’s announcement?


In London, applications saw a post-crash fillip, a sharp dip, then recovery

2011/12 2012/13 2013/14

1,075

775

1,021

2012/13 2013/14

389294

2013/14

180

LONDON GREATERMANCHESTER

GREATERBRISTOL

+32%

NUMBER OF APPLICATIONS

-24%

Source: GL Hearn and Circle Research@GL_Hearn #planningsurvey

http://www.glhearn.com/

http://www.circle-research.com/

All but seven London boroughs have seen application growth

53%45%

76%

0%

156%

29%

-41%

20%

116%

53%

12%

-29%

84%

-18%-6%

74%61%

100%

18%

109%

-27%

34%43%

-55%

8%8%

50%

-47%

64%

17%

160%

33%

58%

Source: GL Hearn and Circle Research

Brom

ley

Ealing

Houns

low

Kensin

gton

& C

helse

a

Walt

ham

For

est

Hackn

ey

City o

f Lon

don

Harin

gey

Harro

w

Kings

ton-

upon

-Tha

mes

Merto

n

South

wark

Barkin

g & D

agen

ham

Barne

tBex

ley

Camde

nCro

ydon

Enfiel

dGre

enwich

Hamm

ersm

ith &

Ful

ham

Haver

ing

Hilling

don

Islin

gton

Lam

beth

Lewish

amNew

ham

Redbr

idge

Richm

ond-

upon

-Tha

mes

Sutto

nTo

wer H

amlet

sW

ands

worth

Wes

tmin

ster

Brent




Construction activity has risen

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

35,59738,502

41,91644,374

47,187

53,41959,344

67,01869,657

75,31381,391 79,689

65,881

72,80078,102

71,98174,922

Source: ONS, Construction Statistics, No. 15, 2014 Edition

Value of UK construction output (1997 – 2013)Current prices (£ million)


http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm:77-360369

Will majors in Greater Manchester bounce back like London?

2011/12 2012/13 2013/14

1,075

775

1,021

2012/13 2013/14

389294

2013/14


GREATERBRISTOL

-28%

NUMBER OF APPLICATIONS

-24%


180




Greater Manchester by authority

Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan

3% 0%

-20%

-80%-63%

21%

-85%

313%

-47%

-5%

Source: GL Hearn and Circle Research@GL_Hearn #planningsurvey



High time for approval

2011/12 2012/13 2013/14

85%84%

86%

2012/13 2013/14 2013/14

LONDON GREATER MANCHESTER

GREATERBRISTOL

95%

82%

93%


2013/14

87%

COMBINEDAVERAGE




But time continues to be the killer

14% 57% 20% 7%

Very dissatisfied Dissatisfied Neutral Satisfied Very satisfied

Base: All Applicants (215)Q: Generally speaking, how satisfied are you with the length of time a typical planning application takes to reach a decision?Source: GL Hearn and Circle Research

NET

-62%

How satisfied are you with the length of time a typical major planning application takes to reach a decision?




Determination time hasn’t improved, and is still 6 months!

2011/12 2012/13 2013/14

34

24 26

2012/13 2013/14

22

2013/14

29


GREATERBRISTOL

VALIDATION TO DETERMINATION TIMESource: GL Hearn and Circle Research

2013/14

25 weeks

COMBINED

21




Two LPAs hit government target, fourteen come close

BuryBar

king

Bolton

Wig

an

Rochdal

e

Sutton

Camden

12 13 14 14 14 15 16 16 16 17 18 19 19 19

23 23 23 23 23 2325 26 27 27 28 28 29 29 29 29 30 31 31 32 32 33

35 36 3739 39

42

46 47 47 4850


SUBMISSION TO DETERMINATION TIME@GL_Hearn #planningsurvey

Bury

Stock

port

Barkin

gBol

ton

Harin

gey

Wig

anSalf

ord

Rochd

aleKin

gsto

nSut

ton

Brom

leyCam

den

Croyd

on

Green

wich



And this masks an additional 4–6 months pre-application*

and many months of discharging conditions before development can commence

*Source: Straw poll of GL Hearn and BPF members Oct 2014@GL_Hearn #planningsurvey

Some support for PPAs, but most LPAs feel change has had little impact on development activity

Neighbourhood Plans

CIL

The Town Centre 1st Policy

PPAs

29%

21%

68%

70%

72%

72%

6%

19%

19% 9%

Decreased a lot Decreased a little No impact Increased a littleIncreased a lot

Base: All LPAs excluding don’t know (32-34)Q: And what effect, if any, do you feel each of the following policies have had on the level of development activity in the UK?Source: GL Hearn and Circle Research

NET

+28%

+16%

-12%

-26%




And most Applicants identify CIL as a barrier to growth

Neighbourhood Plans

CIL

The Town Centre 1st Policy

PPAs

5%

10%

4%

25%

45%

19%

47%

35%

56%

59%

20%

9%

20%

35%

Decreased a lot Decreased a little No impact Increased a little

Increased a lot

Base: All Applicants excluding don’t know (160-198)Q: And what effect, if any, do you feel each of the following policies have had on the level of development activity in the UK?Source: GL Hearn and Circle Research

NET

+34%

-1%

-45%

-8%




38%

62%

Both parties agree - the system still has significant problems

3%

50%47%

LPAs Applicants

It’s absolutely fine – don’t make any changesIt’s generally OK – keep it mostly unchanged, but make a few tweaksIt has significant problems – you need to make major changes

Think ahead to next year’s General Election. What advice would you give the incoming Government, whoever that might be, about the planning system?

Base: All LPAs (37); All Applicants (215)Q: Think ahead to next year’s General Election. What advice would you give the incoming Government, whoever that might be, about the planning system?Source: GL Hearn and Circle Research




Despite this, we need to build homes at double the rate


To do so, we need to address the root causes

43% 41%

35%

24%19%

3%

25%

18%

43%

52%

29%26%

LPAs Applicants

Base: All LPAs (37); All Applicants (215)Q: Think now about housing delivery. What do you see as the major barriers to increasing the rate of housing delivery?Source: GL Hearn and Circle Research

What do you see as the major barriers to increasing the rate of housing delivery?




Five LPAs outperform when speed is linked to volume

0 10 20 30 40 50 600

10

20

30

40

50

60

70

80

90

100

Average time (submission to determination)

Nu

mb

er

of

ap

plic

atio

ns

(20

13

/14

)


Camden

Westminster

Hounslow

Bath

Manchester City




3 years of hard data – what’s changed in London?

2011/12 2012/13 2013/14


34

24 26

Weeks

1075

775

1021

NPPF

Volume

85% 84% 86%Approval rate

NPPF




Planning reforms so far

• Swathe of reforms under Coalition Agreement, including:• Localism Act 2011• NPPF• Growth and Infrastructure Act 2013

• Further reforms and announcements:• Conditions - addressing delays • Local Plans - introducing a statutory requirement • Changes of use - allowing further changes without planning• Permitted development rights - further reform • Statutory consultees - changing thresholds for involvement• EIA – changes to size thresholds for some Schedule 2 projects


One to watch

Planning authority performance and special measures (2013 Act)• Submit major applications direct to Planning Inspectorate where LPA

has poor record of performance

• Recent consultation: • Adjudged as poor performers if 40% or fewer major applications

determined within 13 weeks or where more than 20% of major applications have been overturned at appeal.

• Councils may continue to deal with the administrative tasks/s106

• Concern: to avoid being ‘poor performer’, Councils may increasingly use PPAs and take outside the statistics

• Next full round of designations is due in October 2014


What else could be done?

Time for formal review of Killian Pretty report?(Planning applications: a faster more responsive system ,2008)

• Revisit/consider for major applications:• Reducing information/validation requirements• Strengthening pre-application rules• Strengthening PPAs• Reviewing timeframes around determination/rewards/penalties• Effectively engaging with members• Encouraging delegation • Considering deadlines for all consultees• Staged, consistent and clear officer reporting • Clearer ring-fencing planning application and PPA fees


“We note that current economic conditions are, in the short term at least, likely to lead to a marked downturn in the number of planning applications being received by local planning authorities. We would strongly encourage local authorities to think carefully before making any dramatic reduction in the number of planning staff in reaction to this. The results of drastic contractions in local authority planning departments during past economic downturns are still having an impact upon the staffing and skills base of the planning system many years later. A reduction in the number of applications being processed may thus provide some ‘breathing space’ for local planning authorities to take time to make improvements to the way they work.” (Killian Pretty, 2008)

The Big Issue?

“We note that current economic conditions are, in the short term at least, likely to lead to a marked downturn in the number of planning applications being received by local planning authorities. We would strongly encourage local authorities to think carefully before making any dramatic reduction in the number of planning staff in reaction to this. The results of drastic contractions in local authority planning departments during past economic downturns are still having an impact upon the staffing and skills base of the planning system many years later. A reduction in the number of applications being processed may thus provide some ‘breathing space’ for local planning authorities to take time to make improvements to the way they work.” (Killian Pretty, 2008)


Final thought!

Develop planning departments, boosting capacity and skills: • If extra funding is unlikely to come from government, is there a way

in which the private sector can provide financial support which overall is cost neutral?

• Possibly - if the current process is made simpler and less complex, and the cost of preparing and supporting major applications reduced significantly, then planning fees could rise and help better resource planning departments.

• Short-term - could a programme be created through which local authorities are encouraged to share knowledge, skills and resources with other authorities?


glhearn.com

glhearn.com

Richard Blakeway

Deputy Mayor for Housing, Land and Property

The GLA response

glhearn.com

Gary Yardley

Investment Director, Capco

The private sector’s response

glhearn.com

Stephen Kelly

Regeneration, Planning and Development Directorate, Haringey Council

The local authority’s response

glhearn.com

Liz Peace

Chief Executive, British Property Federation

Debate, conclusions and next steps

Real Estate

Accelerating Housing Delivery in London; is planning reform working