Update to planning guidance includes re-introduction of 'vacant building credit' and small sites exemption

The changes made to the National Planning Practice Guidance (NPPG) also clarified the cut off point for appeals relating to planning obligations and introduced new guidance on updating, modifying and reviewing neighbourhood plans.

In November 2014, the government announced that housing developments in England of 10 units or fewer or that were smaller than 1,000 square metres in area would be exempted from section 106 affordable housing contributions. It also announced that developers would receive a credit in respect of the amount of floorspace of a vacant building being brought back into use or demolished, which could be offset against affordable housing contributions.

The parts of the NPPG providing guidance on these policies were deleted in July after a High Court judge found that the ministerial statement announcing the policies had been unlawful. However, it was anticipated that they would be re-introduced in some form after the Court of Appeal disagreed with the High Court's decision on all grounds earlier this month.

The relevant paragraphs were re-introduced to the section of the NPPG on planning obligations in almost identical wording last week. The new wording on the small sites exemption explains that "the order of the Court of Appeal dated 13 May 2016 ... give[s] legal effect to the policy set out in the written ministerial statement of 28 November 2014 and should be taken into account".

The sections of the NPPG outlining the former application and appeal procedure for reviewing affordable housing obligations on viability grounds were updated to reflect the fact that the procedure was only available until 30 April. New wording was added to clarify that appeals will continue to be considered if an application to review obligations was made before 30 April and all procedural requirements have been met.

New paragraphs were added to the NPPG explaining when neighbourhood plans should be reviewed or updated, the process for updating them or modifying them to correct an error, and the examination of updated neighbourhood plans.

Guidance on local plans was updated to provide clearer advice to planning inspectors on being flexible in the examination process. New wording explains that any fundamental concerns should be identified as early as possible and the suspension of examination or the early review of the plan following adoption should be considered where appropriate.

The changes also included new paragraphs on short-term letting in Greater London and additional guidance on optional technical standards for housing.

Planning expert Ben Mansell  of Pinsent Masons, the law firm behind Out-Law.com, said: "The NPPG has been tweaked to introduce a range of developer-friendly measures, with the most significant of those being the reintroduction of the small sites exemption. This follows the government's successful appeal against the High Court decision. The reintroduction of the small site exemption is likely to act as a stimulant which will hopefully unlock some stalled developments."

"Vacant building credit will also be viewed positively by developers, sais Mansell. "Most notably it can be offset against affordable housing contributions, which can be onerous for developers. The introduction of these two measures is a further attempt by the government to promote house-building. Finally, further guidance in respect of neighbourhood plans is welcomed as their popularity and influence continues to grow."