UK government lays housing bill before parliament and confirms permanent office-to-residential PD right

The Bill contains a clause to implement the government's commitment to allow 'an element of housing' to be included in development consent orders (DCOs) that provide for the streamlined authorisation of nationally significant infrastructure projects (NSIPs).

Homes will be allowed to be included in DCOs under the proposals in the Bill long as they are "wholly in England" and "on the same site as, next to or close to" the relevant NSIP or "otherwise associated with" the NSIP.

An explanatory note accompanying the Bill said further guidance would set out the amount of housing that could be granted consent as "related housing development" under a DCO. Out-Law.com understands that a limit of 500 homes is likely to be imposed under the guidance, that the limit will not depend on the size of the proposed development and that related housing will be able to be included in an NSIP even if it is not in the relevant council's local plan.

Infrastructure planning expert Robbie Owen of Pinsent Masons, the law firm behind Out-Law.com said: "This is a sensible and welcome addition to the NSIPs regime. However we expect some scrutiny to be given to the expected 500 dwellings limit given the difficulties that some large housing developments experience in terms of delivery which the NSIPs regime can effectively overcome - particularly in terms of land assembly, multiple consents and numerous complex project components."

Among the provisions of the wide-ranging Bill are the introduction of the statutory framework for the government's starter homes scheme and for requiring councils to keep registers of brownfield land, an extension of the right-to-buy discount to some housing association tenants and a requirement for local authorities to sell their most expensive vacant homes.

The Bill was published on the same day that housing minister Brandon Lewis announced that the temporary office-to-residential permitted development (PD) right that was due to lapse at the end of May 2016 will be made permanent. Lewis said that, in addition, the new permanent right would allow office buildings to be pulled down and replaced with new residential buildings.

Lewis also confirmed that those who already have permission to convert offices to homes under the temporary PD right will have three years in which to complete the change of use.