Why planning permission is never a sure thing, even with ambitious housing targets

Co-written by Katie Herbert and Harry Gilham.

We have been in a housebuilding crisis for several years – or as many prefer to call it, a planning crisis.

This has been in part caused by a planning system full of logjams, a lack of funding for local council planning departments, a select but very active range of NIMBY’s (Not in My Back Yard), and sometimes, parochial local politicians. With the Government setting out top-down planning changes to ‘Get Britain Building’, the prospect of local councils and national policy makers coming into conflict is becoming a much more likely scenario.

We know some councils refuse more applications than others. Instinctif Partners’ data analysis of planning applications across England for major developments of more than 10 units shows that areas with Independent, Liberal Democrat or coalition run councils have tended to refuse the most since 2021. Simple reasons lay behind this. Independents have no national political apparatus to report to and can act more independently, hence the name. They will have no national leaders criticising them for affecting the national mission to build more homes, like Labour councils may face. Secondly, Independents are often elected on platforms opposing housebuilding, local plans or major infrastructure developments.

Liberal Democrats have often taken populist positions on housebuilding developments when in opposition locally and will be very attuned to the views of their local residents, particularly those who shout the loudest. Moreover, this politics can be typical for third parties seeking to get their policy platforms noticed from an increasingly distracted and busy electorate. 

Whilst the number of Labour councils increased this year from previous elections, gaining eight additional councils and now controlling 51 local councils in the UK (as of August 2024), this represents just 25% of all of the UK. Despite Labour being the party least likely to refuse planning, it still means the vast majority of councils across England (75%) face significant hurdles.

Source: Instinctif Partners

Graphic 1: *Q1 2021 to Q1 2024 – Note, the figures in Graphic 1 are representative of the current council party, rather than who was sitting at the time of the planning application submission. **Major dwellings are defined as per government statistics as major housing developments where 10 or more applications were submitted.

The Government recently announced housing targets will be increased in places where demand is lower, rather than focussing on locations where house prices are exorbitant. For example, the yearly building objective for Redcar in Yorkshire will climb by 1,326%, from 46 to 642. Burnley, Westmorland and Furness, and Hyndburn will all see an increase in building targets of more than 500%. Conversely, major cities like Bristol, Birmingham, and London, will all witness a decrease in their total targets during this time. The new Government formula for housing targets may not work in reality, as it considers current housing stock rather than population projections.

If you are a housebuilder, how will you navigate these new targets and policies with existing councils that have a track record of refusing a high percentage of planning applications? The 2021 Chesham & Amersham by-election is an illustration of how planning reform became a key local issue. The Conservatives lost the seat to the Liberal Democrats who fought an anti-development campaign. This by-election caused the Conservatives to abandon their very ambitious planning reforms modelled on the American system of zoning.

Labour’s changes to the planning system are brave. They come as positive news to many small, medium and large housebuilders keen to get building. They include:

• The reinstatement of mandatory housing targets
• Requirements for all local authorities to have up to date Local Plans in place
• Making it easier to build in the green belt by introducing a ‘grey belt’ definition of previously developed land such as carparks or petrol stations
• Removing references to impact on local character where density is concerned

Whilst these changes are certainly good for the industry, in the short to medium term there may be increased resistance from non-Labour local authorities whose national political parties are opposing Labour’s planning reforms. Labour have been clear they will not be afraid to intervene where councils are refusing applications for no good reasons. Housebuilders should be wary of raising the spectre of Government intervening as a threat if councils refuse applications. Getting the messaging right will be crucial for housebuilders operating in non-Labour areas. Councils of a different political background are often unafraid of picking fights with Government. Councillors have their own mandate from their local electorate. If councillors and local political parties win re-election on platforms opposing Government housing targets, they can feel vindicated to continue opposing unpopular housing schemes. If the Government were to take over, ultimately local councillors could deflect the public anger over new housebuilding to central Government.       

Housebuilders therefore need to be more proactive over the coming years, rather than less. Planning reform is one of the early political dividing lines of this Parliamentary term. Housebuilders not only need to continue to reiterate how their proposed developments are policy compliant, but also ensure they carry out comprehensive public consultations and look to demonstrate community support from the ‘YIMBY’ populations (Yes In My Back Yard). Moreover, housebuilders should look to deliver local gains for the communities they are seeking to build in. Local initiatives such as partnering with local charities and helping to deliver local infrastructure can be beneficial in boosting local reputations.

Instinctif Partners can help you navigate the planning process. The next few years will see a plethora of positive national policy changes in the housebuilding space, but will face strong opposition to change from opposition parties – criticism we are already hearing about from local leaders in the media. Housebuilders should look to carry out effective community engagement, something the new Labour Government has reiterated, whilst ensuring the views of the silent majority who are often supportive are brought to the fore. This should be done whilst highlighting the overarching key benefits of new housing for local communities. 

We have successfully worked across most local authorities in England and understand the process from the point of view of an elected official. Our staff include former councillors who stood as Chairs and members of planning committees at local authority level, Parliamentary candidates and MPs. We are experts at community and stakeholder engagement, as well as broader PR campaigns, to demonstrate strong community support when you need it most.

Angela Rayner MP, the Secretary of State for Housing, Communities and Local Government, recently set out more detail on the Government’s planning reforms and launched a new consultation on updating the National Planning Policy Framework (NPPF). The deadline for responses to the NPPF consultation is 24 September – if you would like help in curating and submitting feedback, please don’t hesitate to get in touch. Every voice counts.

Email Tellmemore@instinctif.com to get in touch with our experts.