005 - Is the UK Planning System Fit for Purpose? – Part 1 The Ghosts of Planning Past and Present

Introduction

The UK Planning system plays a crucial role in encouraging economic growth, promoting affordable homes, and creating high-quality spaces. However, public trust in the system is low, with 58% of the UK population distrusting their local government (OECD, 2022). Craig McWilliam of City Monitor stated, “The British public have lost faith in the planning system.” One reason for this distrust is the failure to meet statutory homebuilding targets of 300,000 new homes per annum set in the 1950s (Watling and Breach, 2023). This under-delivery impacts home ownership, a sense of belonging, and family planning decisions (House of Lords, 2016).

In 2020 Joe wrote an article targeting his view on the changes to the planning system which occurred through the government. This can make an impact on people wanting to make improvements on their homes.

To read the full article: ​https://acrobat.adobe.com/id/urn:aaid:sc:EU:0b6d97c5-629b-4063-977e-71359d6658e1 

Research Context 

The Town and Country Planning Act 1947 forms the basis of today’s system, with historic reforms aiming to improve the process (Town and Country Planning Association, 2018). Despite these efforts, many remain skeptical of the effectiveness of reforms, referring to them as “a stumbling sequence of unsatisfactory adjustments to changing situations” (Wannop and Cherry, 1994). In 2020, Prime Minister Boris Johnson proposed “radical reforms” encouraging “Build Build Build” (Boris Johnson, 2020). While businesses supported this as a Covid-19 recovery plan, it received backlash from various stakeholders, including government backbenchers, the UK Green Building Council, and the Royal Institute of British Architects (Hurst, 2020).

Research Aim 

​This research aims to determine whether the UK planning system is fit for purpose, acting efficiently and effectively to promote development and reflect public needs. The focus will be on housebuilding performance and the wider economy.

Research Objectives 

​•           Determine whether the planning system impacts the economy
•           Assess whether the current output meets demands and targets
•           Ascertain stakeholders’ perspectives of the system
•           Understand the climate of Local Planning Authorities (LPA)
•           Understand the impact of austerity and reforms
•           Suggest improvements and further research

Understanding Past Studies 

​Barker Review of Land Use Planning 2006
Kate Barker’s report found that planning impacts not only house prices and urban environments but also the price of goods in shops. Despite a £600 million planning grant, 69% of businesses remained dissatisfied with progress (CBI, 2006). Barker identified structural issues preventing improvements, particularly a deficiency of financial incentives. Recommendations included streamlining processes, reducing complexity, and improving efficiency.
 
Planning Delay and the Responsiveness of English Housing Supply 2011
Michael Ball’s study found significant delays in planning applications, with 41% taking over 52 weeks. This deterred Small and Medium Enterprises (SMEs) most adverse to risk. Ball recommended changes to prevent long-term delays and improve decision-making processes.
 
The Future of the Planning System in England 2021
Commissioned by the House of Commons, this study found the planning system to be overly complex, outdated, and lacking focus on development. Public perception was poor, with many considering the system “broken” and “not fit for purpose.” The study recommended enhancing resourcing and improving public engagement.

Measurable Matters 

Provision of New Homes ​
Build-out rates assess the speed at which approved sites are constructed. Larger developers often fail to build to satisfy targets, with accusations of land banking. Encouraging SME and joint ventures with legislative and financial support could promote affordable, high-quality housing.​

​HMOs
​Houses of Multiple Occupancies (HMOs) have become a significant tenure, providing housing for those who would otherwise find it unaffordable. However, many LPAs perceive HMOs negatively, proposing restrictions to maintain family dwellings. Quality planning is essential to ensure affordability and address modern challenges.

LPA (Funding, resourcing and culture)
​The RTPI considers regional planning to be significantly underfunded, with expenditure reductions of 42% since 09/10. This has led to a system focusing on representing the public interest rather than promoting development. Outsourcing and agency work are common due to competence, capacity, and expertise shortages.

​Promoting Economic Growth 
​​​The planning system has a complex relationship with macroeconomics. Poor policy can create uncertainty and delays, impacting economic growth. High streets have declined due to economic obsolescence, accelerated by Covid-19. Effective planning policy is needed to promote new enterprises and reimagine areas.

Volume and Delays
​The volume of planning applications fluctuates with the national economy. Delays in decision-making impact profitability and create undesirable schemes for developers. Timely decisions are essential for improved forecasting of costs and risks.

Appeals 
​The average time for the planning inspectorate to determine an appeal is 38 weeks, with 43% of appeals overturned. This high number of overturned appeals indicates a potential aversion to risk or confrontation among planners.
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Conclusion

The planning system is perceived as not fit for purpose, failing to promote development and economic growth. National and regional planning policy appears complicated and outdated, not consistently reflecting public needs. Larger developers have significant control over market supply, and LPA cannot force developers to build. Austerity-imposed cuts have restricted funding, worsening public perception and flexibility. Advances in technology have simplified communication but allowed additional scrutiny. A disproportionate level of refused applications are overturned on appeal, deterring applicants from developing. The system needs significant improvements to meet 21st-century public needs and promote economic growth.
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In the coming week we will be publishing a second part looking towards the future of planning under new government direction.

​About the Author

Joe Marshall BSc (Hons)
Building Surveyor and Director of Silver Teal Ltd

With an expansive career throughout London and Southeast England. Joe brings a wealth of expertise to the Silver Teal Workspace. His extensive experience in both public and private sectors, notably in social housing and emergency services, has honed his proficiency in building pathology and the overall built environment. Joe's academic achievements are highlighted by his 1st Class Honours degree in Building Surveying.

As a director, he is a fervent advocate for nurturing young talent and fostering industry growth. Joe is committed to propelling Silver Teal Workspace forward with his visionary leadership.

If you would like a complimentary discussion with Joe feel free to get in touch

📞 0208 103 4842
✉️ [email protected]