- Council planners and real estate investors unite in calling for greater national clarity to help get Britain building
- Uncertainty around how major retrofit and redevelopment plans should be assessed risks deterring investment and slowing down the decarbonisation of the built environment
- Survey finds nearly one fifth of investors have abandoned development plans or site acquisition due to planning uncertainty
- New Government urged to amend national planning policy and Building Regulations to clarify approach and give developers confidence to invest in new projects as well as upgrade older, historic buildings
- Industry leaders identify four quick fixes to existing national planning policies which could help reverse a 54% fall in major planning applications in London over the past decade
The London Property Alliance (“LPA”), which represents over 400 of the leading companies in the capital’s real estate industry, has warned that the Government’s commitment to transition to a green economy and drive economic growth could be derailed by a lack of clarity around making older buildings fit for the future.
With 74% of offices in central London requiring significant upgrades to meet new energy efficiency standards by 2030, in addition to 83% of the UK’s total retail floorspace, a large proportion of the capital’s commercial space risks falling into neglect.
In a report produced in partnership with real estate advisory firm Savills, the LPA has urged the new Government to use its upcoming consultation on the National Planning Policy Framework (NPPF), as recently announced by Chancellor Rachel Reeves, to support a growth-focused approach to planning that takes into full account all three stated objectives of sustainable development; economic, social and environmental.
The LPA outlines that the National Planning Policy Framework (NPPF) contains little guidance for local authorities on how to examine the relative merits of a retrofit and redevelopment approach to development in line with these three objectives, including how to assess the carbon generated by a building throughout its lifetime (whole life carbon).
LPA’s survey of its members found that 40% have experienced planning delays and 17% have abandoned development plans or site acquisitions due to uncertainty around how proposals would be assessed.
The LPA warns without further clarity on how local authorities weigh up difficult decisions on major regeneration schemes where there is an element of demolition, the industry’s efforts to decarbonise its buildings will be held back, while future investment and growth is at risk. The report, ‘Retrofit First, not Retrofit Only: Future-proofing national policy to support sustainable development’, sets our four key recommendations:
- Introduce a model to help local authorities better balance all three objectives of sustainable development: Implement a model with a consistent process for how the economic, social and environmental benefits and impacts of a development can be assessed, particularly in relation to retrofit and redevelopment, with councils and communities taking proportionate and balanced decisions which deliver on local needs.
- Evaluate retrofit vs redevelopment: Set out a clear, single approach for evaluating the benefits of retrofit and redevelopment options and benefits derived from different proposals. This retrofit optioneering assessment should form part of the national Planning Practice Guidance (PPG), creating a single clear approach for evaluating the benefits of all retrofit and redevelopment options.
- Standardise reporting and metrics: Amend national Building Regulations to mandate and standardise the reporting of whole-life carbon emissions from buildings. This would create a consistent approach to measuring whole-life carbon emissions, and allow planning authorities and applicants to compare different retrofit and redevelopment options on a like-for-like basis.
- Incentivise investment in historic and listed buildings: With over 10% of UK buildings located within conservation areas, it is important that upgrades to improve energy efficiency are treated as a public benefit to help attract investment and preserve our historic assets.
Charles Begley, Chief Executive, London Property Alliance said:
“The debate around how we improve or replace Britain’s aging building stock has become increasingly fraught. We now have an opportunity to help support more sustainable buildings, which are a major contributor to carbon emissions, whilst also growing the economy.
“We’re not calling for major planning reform or long-drawn out reviews. Just four simple fixes to existing policies would help provide the certainty and clarity local councils, communities and investors alike need to help balance the inevitable trade-offs and compromises which come with development. The prize for getting this right could be transformational for the country.”
Rob Bristow, the Director of Climate, Planning and Transport at London Borough of Lambeth, and the Immediate Past President of the Planning Officers’ Society which represents c2,000 individual planners working in 80% of the local authorities and public sector organisations in England, said:
“The issues within planning have become increasingly complex, particularly as we rise to the challenge of tackling climate change and rightly set ambitious net zero targets. These are practical and easily implementable amendments to the NPPF that will help planners, elected members, applicants and communities to better understand and assess the merits of development in a balanced and proportionate manner.”
Matt Richards, Director of Planning at Savills and the report co-author, added:
“Planning applications where there is an element of demolition, such as M&S’s proposed redevelopment of its Oxford Street flagship store, have become increasingly controversial, despite wider sustainability credentials, community benefits and contribution to job generation and economic growth.
“Councils are taking differing approaches to assessing proposals, adding risk and complexity to the planning system which is creaking under the pressure. Our proposals should help provide consistency on this important topic and give developers confidence to invest in new projects as well as upgrade older, historic buildings.”
The vast majority of LPA members surveyed (91%) called for the introduction of national planning guidance to address the issue, which is needed to reverse the 54% fall in major planning applications witnessed across London over the past decade and unlock investment.
Additional research by LPA, found that central London alone could receive a £100 billion boost through planning reform that encourages both retrofit and sustainable development. This could see an additional 40 million sq ft in office floorspace delivered over the next 20 years, the equivalent of 39 Shards, as well as 6.5 million sq ft of hotel space and 8.4 million sq ft of retail, restaurant and entertainment space, according to the data supplied by Arup. Importantly, reforms could help reverse the 54% fall in major office planning applications across central London and deliver £3 billion in additional contributions paid by developers to councils for improvements to local areas.
The full report can be read here.
