CPRE report recommends more powers for councils to tackle delays in delivery of housing development

The recommendations in the report, Getting Houses Built (24-page / 5.4 MB PDF), included the introduction of new 'use it or lose it' powers that would allow councils to force developers to complete large schemes within five years of receiving planning permission or offer the remaining plots to small and medium sized builders or those looking to build their own homes.

The report said the business practices of volume house builders were causing delays in the construction of homes and contributing to a shortage of housing in the UK. It said that strategic land banking by large-scale house builders was preventing the release of sites suitable for residential development and that large sites with planning permission were being built out slowly to maximise sale prices on new homes.

The authors recommended that local planning authorities be allowed to consider shortening the life of planning permissions when granting them, and increasing the cost of renewing or extending them, to deter house builders from delaying development. They said these measures could be combined with allowing councils to agree what counted as a 'material operation' implementing a permission, in order to prevent developers delaying delivery after carrying out only minor work on site. They also recommended incentivising rapid development by giving councils "the option to charge council tax on the dwellings or which they have been given permission 24 months after planning permission is granted, even if development remains uncompleted".

The report said a greater use of local authorities' compulsory purchase powers should be encouraged by allowing the compulsory acquisition of land suitable for housing development at its existing value rather than its value as residential land. Councils could then use the subsequent increase in value to provide infrastructure and offer serviced plots to house builders, the report said.

To address the uncertainty caused by a lack of free access to land ownership information, the CPRE said the registration of "all land ownership, options agreements and sales with the land registry" should be made compulsory. To encourage quick registration, the report said "financial penalties should apply if land is not registered after a year and, after five years, remaining unregistered land could become public property."

The authors also recommended "an 'open book approach' to the assessment of viability", to avoid lengthy negotiations over whether land could be brought forward for development in line with the planning obligations demanded by a local authority. A single methodology for the assessment of viability should be identified, clear guidance issued and the sources of variables used must not be allowed to be kept confidential to preserve commercial confidentiality, the CPRE said.