The United Kingdom stands at a critical juncture as it contends with a formidable housing crisis, a predicament that has gradually intensified over the years. With house prices reaching unprecedented levels and the rental market imposing an onerous burden on tenants, the urgency for innovative solutions is more pressing than ever. A recent report by the Adam Smith Institute (ASI) proposes a thought-provoking approach: utilising development orders to circumvent the traditional planning regime and expedite the construction of new homes.
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Development orders, though not a novel concept, have been part of the legislative landscape since the Town and Country Planning Act of 1990. These orders permit specific developments in designated areas without necessitating a conventional planning application. Essentially, they offer a streamlined pathway for development, cutting through the bureaucratic red tape that often hinders construction projects. The ASI report, penned by Henry Hill, posits that these orders could be transformative in addressing the housing shortage. By leveraging existing powers, the government could potentially fast-track the creation of new towns and housing developments, particularly in “grey belt” areas, which often lie between urban settlements and the green belt.
The political landscape surrounding housing development is fraught with challenges. The Labour government has set an ambitious target of delivering 1.5 million new homes during its current parliamentary term. However, Peter Denton, the chief executive of Homes England, has expressed doubts about the feasibility of this target, suggesting that achieving it might necessitate a two-term approach. In this context, development orders could play a pivotal role. By bypassing the traditional planning processes, these orders could significantly accelerate housebuilding efforts. Nonetheless, both major political parties have demonstrated reluctance to commit to comprehensive planning reform. The Conservatives, during their time in power, failed to implement substantial changes, despite attempts by former Housing Secretary Robert Jenrick. Labour appears similarly hesitant to fully embrace planning reform, although development orders could provide a pragmatic alternative.
Development orders present several advantages that merit consideration. Firstly, they offer speed and efficiency, drastically reducing the time required to get housing projects underway. By eliminating lengthy planning applications, developers can transition from proposal to construction more swiftly. Secondly, development orders can lead to cost reduction. The planning system is not only time-consuming but also costly, and development orders can alleviate these financial burdens, facilitating market entry for smaller developers and enhancing competition. Thirdly, the flexibility inherent in development orders allows for targeted development in areas of greatest need, such as urban regeneration projects or new towns in underutilised regions. Furthermore, by centralising decision-making, development orders can bypass local objections that frequently stall projects, especially in areas where local councils resist new developments.
However, these orders are not without their challenges. A primary concern is the lack of long-term certainty for developers. What is granted by ministerial decree can also be rescinded, creating a level of unpredictability. Additionally, there is a risk that bypassing local planning processes could result in developments that inadequately consider local needs and concerns. The political landscape also plays a crucial role in the success of development orders. Implementing them requires robust political will and backing, something that has been lacking in recent years. The challenge lies in balancing the imperative for rapid development with the interests of local communities and stakeholders.
The housing crisis in the UK is a multifaceted issue that demands a comprehensive array of solutions. While development orders are not a panacea, they offer a viable tool to accelerate housebuilding and address the pressing need for more homes. By cutting through bureaucratic hurdles and enabling targeted development, these orders could significantly contribute to alleviating the housing shortage. As the government endeavours to meet its ambitious housing targets, the strategic use of development orders could become a crucial component in the broader effort to forge a more sustainable and accessible housing market. The call for innovative solutions is urgent, and development orders may well serve as the catalyst needed to unlock the UK’s housing potential.
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