Press Release

23 November 2009

 

Conservative councils less likely to grant planning permission for new homes

 

  • Conservative councils granting just  63% of planning permissions vs. 69 % for others
  • Six of the ten planning authorities with the lowest rates of planning permission granted are run the by the Tories

 

Residential property developers are far less likely to gain planning permission for new developments in Conservative controlled local authorities, reveals research by McGrigors, the commercial law firm.

 

Over the last year* Conservative councils approved an average of just 63% of planning applications for major housing developments, a noticeably lower figure than the 69% for applications for major housing developments approved by local authorities not under Conservative control.

 

McGrigors says that this low level of planning permission granted in Conservative controlled areas is significant as Conservatives control is most heavily concentrated in the South East of England where housing shortages are the most acute.

 

The research also found that nine of the ten Local Planning Authorities (LPAs) with the lowest percentage of planning permissions granted for major housing developments are run by the Conservatives. These are Rochford, Castle Point, Brentwood and Staffordshire Moorlands with just a 20% of approval rate, Wycombe with 21%, Wokingham with 25%, Forest of Dean with 26%, Bexley with 27% and Canterbury with 28% of approval rate.

 

McGrigors says that with the Conservatives currently controlling 51% of UK councils and prospects that they could win even more ground in the 2010 elections, it could become even harder for developers to obtain planning permission, meaning that Britain could face the risk of even more severe housing shortages in the long term.

 

The Conservative Party recently instructed their councils not to make decisions on controversial planning issues until after the general election. The concern is that the Conservatives’ new planning policy would allow planning authorities to put the brakes on planning applications that more vocal elements of the local population finds undesirable.

 

Suzanne Gill, Partner at McGrigors comments: “A slow and expensive planning approval process has contributed to a lack of new housing and, in part, to the boom and bust of property prices. Shortages of new homes are not restricted to metropolitan areas. In many rural areas people looking to buy for the first time are being priced out of their local community because of the lack of new, affordable housing.”

 

“Developers are wondering how a change in Government will impact planning policy. There is a concern that a tightening of planning regulations will impact on their ability to deliver projects and make housing a less attractive part of the construction market.”

 

McGrigors says that developers face planning applications fees of up to £250,000 for major housing developments, which means that even one unnecessary refusal of planning permission can put a significant strain on a developer.

 

Developers should submit planning applications before the elections

 

McGrigors says that developers who have the necessary funding for their projects should submit planning applications before the elections (due sometime in May 2010) in order to increase their chances of getting planning permission whilst taking advantage of low land prices.

 

Comments Suzanne Gill: “Developers should act as soon as possible because as the elections draw closer, councils will become increasingly reluctant to grant planning permission, especially for projects seen as contentious.”

 

“There is also the danger that after the elections the incoming Government will be tougher with planning applications than the outgoing one.”

 

* 1st April 2008 to 31 March 2009 – latest data available

Andy Peat

Business Development Director
Telephone: +44 (0)20 7054 2710
Mobile:  +44 (0)7894 835 386
Email: andy.peat@mcgrigors.com

Information Release