Coalition government announce new incentives to build

Incentivisation is being introduced by the coalition government to encourage development and the latest proposal is for there to be a "New Homes Bonus", introduced to reward development.

Local communities may be able to build more homes and be rewarded for doing so by additional funding to be used in the local area. It is suggested that the amount of this financial payment would be equivalent to 6 years Council Tax on the new houses. One proposal is that this money be used directly to discount council tax for residents or it could be used for other facilities considered to be a priority within a specific local area.

Councils would be encouraged to grant planning permissions to nurture construction of new houses and they would receive financial benefits for doing so. The Housing Minister, Grant Shapps, was quoted as saying "with house building at its lowest peace-time levels for over 80 years, action is needed now to build the homes the country needs...it is why I have confirmed that those councils who go for growth now will reap the rewards."

A consultation paper is to be published to canvas opinion on these new proposals so it is a matter of watch this space...

Rural planning permission

In another announcement of the coalition government, it was recently proposed that rural communities will be able to effectively issue planning permission themselves, for some schemes which are supported by local people.

It is suggested that where a rural community wants to build new affordable homes, they could call a local referendum and if there is an 80-90% support within the community; the development could be built. However, it is not clear whether the procedure will be as autonomous as it may sound.

There has been a lot of criticism of these proposals, not least from the Royal Town Planning Institute (RTPI) who are concerned that this would detract from the planning function of the local authority and the transparent application of planning policy.

It should also be borne in mind that the time taken to put the proposals together, have discussions with the community, call a referendum and count the votes may well take longer than the determination of a planning application. Therefore, where the proposals are not controversial, it may still be best to deliver rural developments by way of a planning application to the local planning authority.

For more information on these developments or any other planning or property issue, please contact Louise Whitehead or call 0116 257 4452.