DCLG promises action on land-banking and 'starting on site' rules to support zero carbon development

In response to the Callcutt review on house building, the DCLG said it would introduce a legal definition on what constitutes a ‘substantial start’ by a developer to avoid major sites being held up by long delays. It also reaffirmed its aim to deliver homes where they are needed, at an affordable price, and meet zero carbon targets.

Planning minister Yvette Cooper confirmed that the Government will consult shortly on tougher planning rules on when a development has officially commenced.

This move has been prompted by publication of the Callcutt Review which looked at the capability of the house building industry to deliver the Government's expectation of a major boost to house building provision. The Government commissioned the independent Callcutt Review to look at the capability of the housebuilding industry to deliver the homes needed for future generations.

Yvette Cooper said the Review was a significant contribution to the debate on new housing. The Prime Minister has announced plans for 3 million new homes by 2020, backed by £8bn for affordable housing. The Review has shown these targets are achievable.

Now firmly in prospect is a new legal definition of what constitutes ‘a substantial start’ by a developer to avoid major sites being held up by long delays.

Currently developers only need to start a development within three years for planning permission to be valid, without having to complete it.

The minister also signalled that the Government plans to introduce new ‘fast track contracts’ to help speed up the development of new homes on public sector land.

She also announced plans for a new body to monitor and co-ordinate work on delivering the Government's drive to make all new homes zero carbon by 2016.

She said: ‘We urgently need to build more affordable, greener homes for this and future generations. But we cannot afford to wait for developers who may drag their feet once planning permission has been granted, hoping to benefit from increases in land value.’

She added: ‘We also want to stamp out any potential for hidden land banking by making sure that land assets are completely transparent in financial statements.’

Cooper gave the Government's initial response to five key areas highlighted in the Review, saying the Government would:

• Introduce a new legal definition on what constitutes a 'substantial start' by a developer to avoid major sites being held up by long delays. The Government will consult on options for tougher planning rules on when a development has officially commenced. Currently, developers only need to start a development within three years for planning permission to be valid, without having to complete it. However, a start can involve merely digging a ditch or laying the foundations of a single building. This can slow down the delivery of much needed homes.
  
• Introduce new 'fast track contracts' to help speed up the development of new homes on public sector land. The Government wants to see faster building targets for developers on suitable disused public land when agreeing contracts. English Partnerships is currently examining 900 disused public sector sites for development. The Government would like to see this approach rolled out across other disused sites held by other public agencies, which could deliver 200,000 homes for social rent, first time buyers, and key workers, by 2016.
  
• Give increased support to sustain the Government's drive to make all new homes zero carbon by 2016, through a new body to monitor and co-ordinate work on delivering the target. The UK Green Building Council has been asked to lead on establishing the work programme and priorities for the new group and will report back to Ministers in four weeks. The new group will support the work of the 2016 Task Force, which spearheads the zero carbon agenda.
  
• Closely examine proposals for an annual independent customer satisfaction survey on new housing, working with the Office of Fair Trading, and considering whether housebuilders' results should be linked to future allocations of public funding or bids for public sector land. Presently, a customer survey is carried out by the House Builders Federation but Government wants to look at whether we need to go further to support work on raising the quality of new housing.
  
• Agree a 'new industry standard' to increase transparency of developers' land holders held for future housing. The Government will work with the housebuilding industry, financial institutions, and the International Financial Reporting Standards Board, on a new standard approach to reporting land holdings to discourage any incentive to hide assets.

John Callcutt's report concludes that the housing building industry is in shape to deliver the additional 240,000 homes a year needed by 2016, and three million more homes by 2020. But the challenge will be to deliver homes where they are needed, at an affordable price, and meet zero carbon targets.

Yvette Cooper said: ‘We urgently need to build more affordable, greener homes for this and future generations. But we cannot afford to wait for developers who may drag their feet once planning permission has been granted, hoping to benefit from increases in land value.

‘That's why we are looking at what changes could be made to the planning system to make sure that developers really are making a substantial start on their projects.

‘We also want to stamp out any potential for hidden land banking by making sure that land assets are completely transparent in financial statements.