New Planning Rules May Not Result in Affordable Homes

UNITED KINGDOM / AGILITYPR.NEWS / August 03, 2020 / The announcement that land is to be designated as Growth, Renewal or Protected, has handed a huge bonus to landowners fortunate enough to have land located in a “Growth” area, but it may not result in affordable homes, say leading tax and advisory firm Blick Rothenberg. 

This is because under the proposed legislation planning permission will not be required for the construction of new homes, hospitals, schools, shops or offices if the land is in a Growth area.

Heather Powell, a partner at the firm and head of property said: “ Landowners have effectively gained planning permission for new homes, offices and various other property classes without spending any money on the change of the status of their land. Those with land in “Renewal” areas have gained “permission in principal” and so will also see some increase in land value.”

She added: “ This is great news for the land owners, but whether it will flow through to a greater number of affordable homes depends on whether the selling price of the land drops. If landowners flood the market then the price will fall, but only ‘IF’.”  

Heather said: “ Selling land is a once in a lifetime opportunity – and landowners will want to get the top price possible. Why should they hand the ‘family silver’ over to a developer so that he can build affordable homes?