Councils, developers and housebuilders in limbo after government announces scrapping of regional plans

Planning authorities throughout the country have been plunged into chaos after communities secretary Eric Pickles advised them five weeks ago that regional plans would be scrapped.

Several councils have put decisions on key development proposals on hold while they wait for clarification of government policy. Many more have halted work on local plans.

Developers of some sites may be left in limbo, casting doubt on residential and commercial schemes.

Davies Arnold Cooper head of planning Tim Johnson said that government announcements have halted planning decisions at many councils, particularly in the south-east.

“There is a marked reluctance on the part of local authorities to consider major applications, whether they be commercial or residential. It would seem the confusion is being used as a means of not determining applications.”

Trade organisations have called for urgent guidance to clarify which parts of regional plans can still be used until other arrangements are put in place.

An internal British Property Federation (BPF) briefing note, seen by Property Week, warns: “The key problem is that regional strategies now exist in a strange twilight world. This is threatening to bring important parts of the planning system to a grinding halt, which is surely the opposite of what the government intends.”

The Royal Town Planning Institute is expected to announce a coalition to lobby government on the importance of strategic planning. The BPF, Home Builders Federation, Chartered Business Institute, Town and Country Planning Association and Planning Officers Society are likely to be involved.

Concerns are also being raised within government ranks. Conservative MP Mark Lancaster was due to hold a Westminster Hall debate on regional spatial strategies this week to discuss the implications of Pickles’ letter.

Home Builders Federation head of planning Andrew Whitaker reported that some councils had taken the opportunity to increase housing numbers in local policies. But he warned that the lack of decisions elsewhere could create problems in years to come.

“Our real concern is how long this hiccup is going to last,” he said. “We’re worried authorities are going to carry on refusing planning applications. You can’t turn development on and off like a tap. The long-term knock-on effect of short-term negative decisions is huge.”

At least one housebuilder has issued a warning to shareholders that the uncertainty will affect business.

A Taylor Wimpey trading statement this week said: “We remain concerned that the shortage of consented land will artificially constrain the recovery in industry volumes and this will be exacerbated by the impact and timing of changes in planning policy following the general election.”

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