What we know and what we don’t, The Levelling-up & Regeneration Act

The Situation: The Levelling-up and Regeneration Act (“the Act”) was passed by Parliament and became law on 26 October 2023.

The Development: The UK government states that the Act will “speed up the planning system, hold developers to account, cut bureaucracy, and encourage more councils to put in place plans to enable the building of new homes.”

Looking Ahead: Many of the measures set out in the Act are not fully detailed (further regulations are required before they can take effect) and, while the changes are intended to simplify the planning regime, developers should closely follow the progress of implementing legislation over the coming months.

The Act, which was passed by Parliament and became law on 26 October 2023, largely provides a framework for a raft of future changes to the planning system. Many of these intended changes will first require the introduction of secondary legislation and new planning policy before they can take effect. At the moment, there is little guidance as to when the secondary legislation will be forthcoming, and with the prospect of a general election later this year, it is unclear when the substantive changes will come into effect.

We summarise below a few of the key changes to the planning system under the Act. These are yet to come into force.

Commencement Notices for Planning Permissions

Before commencing development pursuant to a planning permission, a developer will be required to submit a commencement notice to the local planning authority specifying the date on which the development is expected to begin. Failure to serve a notice will be a criminal offence liable on summary conviction to a fine of up to £1,000.

Developers will need to comply with this new requirement. The mandatory commencement notices will provide a formal record of when development commenced, which may be helpful in transactional due diligence.

Changes to the Roles of the Development Plan and National Policy in Determining a Planning Application

Section 94 of the Act introduces the concept of National Development Management Policies (“NDMP”), which will be national development and land use policies covering issues of general application across most areas (for example, heritage protection). These policies will be subject to consultation and are to be determined by the secretary of state.

Section 93 of the Act changes the roles of the local development plan and national planning policy in determining a planning application. If regard is to be had to the local development plan and any NDMP, the determination must be in accordance with the development plan and the NDMP, taken together, unless material considerations strongly indicate otherwise. However, if there is any conflict between a development plan and a NDMP, then the conflict must be resolved in favour of the NDMP. The long-established statutory primacy of the development plan is therefore eroded.

New Section 73B for “Permission Not Substantially Different for Existing Permission”

The Act inserts a new section 73B into the Town and Country Planning Act 1990 (“TCPA”) for “Applications for permission not substantially different from existing permission.” This is intended to help plug the gap between applying for wholly new planning permissions and the sometimes necessary practice of using two applications, one for “non-material amendments” under section 96A of the TCPA 1990 and one for “minor material amendments” under section 73 of the TCPA 1990, in order to secure amendments to proposed development schemes. The practice of submitting parallel applications arose following the Finney judgment, which ruled that the description of development cannot be amended by a section 73 application, thereby limiting its application.

Section 73B will come with certain limitations. For example, it cannot be used in respect of a planning permission granted under section 73 or 73A, and it cannot be used to alter the time limits for beginning work or for submitting reserved matters applications.

10-Year Time Limit for All Enforcement Action in England

The Act amends section 171B of the TCPA 1990 to extend the enforcement time limits for a breach of planning control comprising building without planning permission and change of use to a single dwellinghouse from four to 10 years. The abolition of the four-year rule for these breaches of planning control applies to England only (the four-year rule still applies in Wales).

This will be a significant change and will have an impact on transactional due diligence. Developers intending to submit an application for a certificate of lawfulness of existing use or development based on a four-year period should consider making the application as soon as possible before these changes come into effect.

New Infrastructure Levy Set to Replace CIL

The Act introduces a new charge on development called the Infrastructure Levy (“IL”).

All local planning authorities in England will be mandated to issue an IL charging schedule, rather than having discretion to do so as is currently the case with the Community Infrastructure Levy (“CIL”). The IL would be based on the gross development value rather than the development’s floorspace. The IL liability would be paid as and when the relevant development commences and in accordance with procedures to be set out in the IL regulations.

IL is intended to fund affordable housing as well as other local infrastructure and should reduce the circumstances in which a section 106 agreement is required. IL is also intended to replace CIL in due course (save for Mayoral CIL in Greater London and CIL in Wales, which will remain).

Until further regulations are issued by the secretary of state, there is some uncertainty as to how IL will interact with the existing CIL regimes and section 106 obligations.

Two Key Takeaways

  1. The Act became law on 26 October 2023, but many of the measures will not come into effect until secondary legislation and guidance is issued, and there is some uncertainty as to when this will happen.
  2. Although not all measures are in force yet, the Act includes significant changes which developers and their advisors should be aware of, in particular: (i) the requirement for commencement notices; (ii) changes to the relationship between development plans and national policy; (iii) a new section 73B of the TCPA 1990 for “permission not substantially different from an existing permission”; (iv) the 10-year time limit for all planning enforcement action in England; and (v) the introduction of a new IL, which is set to replace CIL.

Source: JD Supra

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Construction companies in ‘critical financial distress’

Nearly 8,000 construction companies in ‘critical financial distress’: report

Begbies Traynor’s latest Red Flag Alert report spells bad news for the construction industry, with the number of companies in critical financial distress growing by 32.6%.

The accounting firm’s report comes on the heels of the administration of Stewart Milne Group and Stewart Milne Homes North West England after the company was unable to find a suitable buyer. Last year, North Wales firm Brenig Construction also went under with £5.4m in debts, as did Lane End Developments Construction with a debt figure of £13m. Buckingham Group Contracting went bust in September.

As of the fourth quarter of 2023, Begbies Traynor put 7,849 construction companies down as being in critical financial distress, with another 83,332 in significant financial distress. Begbies Traynor noted that historically companies who have been on the critical financial distress list often go insolvent before the end of the year.

For the real estate and property services industry, the figures are 6,228 companies in critical financial distress and 62,176 in significant distress.

Construction and real estate were not alone in facing financial troubles – Begbies Traynor reported that the overall figures of companies in critical financial distress had grown by nearly 26% from the previous quarter – with 47,000 companies near collapse nationwide.

“After a difficult year for British businesses that was characterised by high interest rates, rampant inflation, weak consumer confidence, and rising and unpredictable input costs, we are now seeing this perfect storm impacting every corner of the economy,” said Julie Palmer, partner at Begbies Traynor.

“Now that the era of cheap money is firmly a thing of the past, hundreds of thousands of businesses in the UK, who loaded up on affordable debt during those halcyon days, are now coming to terms with the added burden this will have on their finances,” she continued.

Ric Traynor, executive chairman of Begbies Traynor, did issue some silver lining.

“Later this year, we could see some respite for companies as inflation looks like it may reach more palatable levels, which in turn should result in interest rates starting to climb down from current heightened levels,” he said.

“Unfortunately, there are no signs of an easy fix and, with geo-political uncertainty continuing to rise and a hike in the national wage around the corner, the backdrop is hardly improving for an economy that is still firmly in recover mode post-pandemic.”

Source: Place North West

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Supply Chain Eases but Planning Still Hampers Housing

Proposed changes to England’s planning framework could see up to 77,000 fewer new homes likely to be built per year for the rest of the decade, slumping to the lowest level since the second world war and leaving the government’s 300,000 new homes a year housebuilding target in tatters.

For the fourth consecutive year, the top two major barriers to growth for SME developers are chronic delays in the planning system and under-resourced Local Authority planning departments. Both factors have severely impeded SMEs’ ability to deliver much-needed housing stock and have been compounded by rapidly increasing associated costs.

A new report, State of Play: Challenges and Opportunities Facing SME Home Builders, published by Close Brothers Property Finance, the Home Builders Federation and Travis Perkins shows that 46% of SME home builders saw an increase of over 30% in the costs of obtaining planning permission over the past three years.

This was before local authorities in England hiked planning application fees by as much as 35% from 6th December 2023.

Another major hindrance to SME home builders has been interest rate rises, cited by 72% as a major barrier. The Bank of England’s 14 consecutive rate hikes have hit the sector particularly hard.

Not only have home builders had to contend with higher borrowing costs themselves, but demand for new homes has dropped substantially as many buyers have been forced to reconsider how much they can afford to borrow, or in some cases put off buying a home altogether.

The report comes as all indicators point towards a sharp fall in housing supply amidst an increasingly challenging policy and economic environment.

Proposals to abolish mandatory housing targets were confirmed by the Government before Christmas, a decision that 80% of survey respondents said would be a barrier to growth as it will likely lead to more Local Authorities withdrawing their Local Plans (over 60 have already done so) and further delay and confusion for all parties.

SME home builders have also faced more than four years of uncertainty over the nutrient neutrality issue that is currently holding up around 150,000 desperately needed new homes despite the negligible impact on river quality their occupation would have; whilst demand remains constrained as a result of high-interest rates and the lack of a government support scheme for first-time buyers.

On a more optimistic note, the number of SMEs citing the supply and/or costs of building materials as a major barrier to growth dropped significantly in the past year, from 79% to 42%. Global supply chains have largely recovered following the Covid-19 pandemic and war in Ukraine.

The cost and supply of labour are similarly perceived by fewer SMEs as a major barrier to growth than last year (41%, down from 64%), suggesting a softening in the labour market.

SMEs are also paving the way forward for sustainable housebuilding. Nearly two-thirds (64%) of SMEs are building homes which include sustainable technologies and features that go beyond the requirements of building regulations; with over 60% including photovoltaic panels, air/ground source heat pumps, high-performance double-glazed or triple-glazed windows and preservation/protection of wildlife and nature.

Rowland Thomas, Managing Director, Close Brothers Property Finance, comments:

“Navigating an under-resourced planning system continues to present the greatest challenge to SMEs, who unlike larger housebuilders aren’t in a position to direct capital into new projects when there are delays.

“To make matters worse, there are now increased planning application fees to contend with. One would hope that the extra revenue these generate will be used to boost resources, but as the money won’t be ringfenced there is sadly no guarantee.”

“The major change in the fiscal environment has also been a blow to the sector. Consecutive interest rate rises have not only impacted construction and labour costs but also stifled mortgage liquidity and buyer demand.

“Thankfully rates appear to have reached their peak in the current cycle and there is growing confidence that rate cuts may be as soon as Q2 this year. It is also very encouraging to see SMEs leading the charge in sustainable development, yet another compelling reason to ensure we support more of these businesses and remove the obstacles for growth.”

Stewart Baseley, Executive Chairman of the Home Builders Federation says:

“The house building industry faces some major barriers to delivery and all indicators now show sharp falls in supply. SMEs in particular are unable to manage the delays caused by the collapse of the planning system and the lack of capacity in planning departments.

“The increasingly onerous policy and regulatory environment has seen the number of SME builders plummet in recent years, and we urgently need to see a reversal of the anti-development approach by the Government or more companies will disappear. SMEs are vital to the industry’s ability to deliver the homes we need and play a vital role in training and communities across the country.”

James Mackenzie, Managing Director, Travis Perkins, says:

“One positive from the last year is that supply chain constraints have largely eased, something that is reflected in the survey, with 42% of SME homebuilders citing ‘Supply and cost of materials’ as a major barrier to growth, down considerably from 79% in the previous iteration of the report.

“A key objective of ours as a materials supply partner is to deliver best-in-class products and bespoke services to meet the needs of our customers. This can help to ensure that SME homebuilders not only survive the current difficult market conditions but go on to thrive as they deliver quality homes and tackle Britain’s housing shortage.”

Source: Property Reporter

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Concrete4Change raises £2.5 million to permanently lock away CO2 in concrete 

 

Nottingham-based startup secures investment from Zacua Ventures and Counteract to scale its breakthrough process of mineralising CO2 in concrete for permanent sequestration.

23 January, Nottingham, UK: Concrete4Change (C4C), an advanced materials company that permanently captures and utilises CO2 by mineralising it in concrete, has raised £2.5 million in seed funding. The round was led by Zacua Ventures, an early-stage venture fund focused on the built environment and Counteract, a carbon removals focused venture fund, with participation from the family office of Goldbeck. This brings the total investment raised to date to £4.5m including £1.5 million in grant funding. C4C will use the investment to scale its technology from the lab environment to pilot projects with strategic investors that include some of the world’s leading concrete manufacturers, Goldbeck and Siam Cement Group.

Founded by Dr. Sid Pourfalah, Dr. Michael Wise and Dalraj Nijjar, C4C has developed a novel proprietary technology that permanently captures CO2 and mineralises it in concrete. CO2 is captured by C4C’s carrier material, and the loaded material is mixed in fresh concrete as an additive. The CO2 in the concrete undergoes a chemical reaction and is permanently mineralised. The result is concrete that is not only 20% stronger but becomes a CO2 sink that prevents any leak, even after demolition of the concrete.

Approximately four billion tonnes of cement is produced annually which creates three billion tonnes of CO2 per year, equating to 8% of global CO2 emissions. C4C plans to create localised supply chains by taking advantage of low-cost waste streams such as the CO2 emitted at cement production sites. C4C’s technology for CO2 mineralisation is completely novel in the market – using a carrier material medium to transfer CO2 into concrete with the aim of making it stronger and greener as a result. It is applicable to all types of cement and concrete including pre-cast and ready-mix concrete and can be easily incorporated into existing supply chains.

Dalraj Nijjar, Co-founder & Chief Commercial Officer, Concrete4Change, said:

“Concrete4Change’s technology offers a viable route to turn an emission problem into an emission solution and set in stone a path for the construction industry to achieve net-zero concrete. This fresh injection of funding from specialist investors with deep sector expertise means we can now go from successful demonstrations in the lab and small-scale trials to real-world pilot projects.”

Prof. Sid Pourfalah, Founder & CEO, Concrete4Change, said:

“Concrete can naturally absorb a small amount of CO2 in its lifetime, but its full potential can never be reached in nature. The concrete industry needs scalable, long-term solutions, and this is where Concrete4Change comes in with our novel and easy-to-adopt approach. We are the first company in the world to create a technology that harnesses chemistry to efficiently mineralise CO2 and enhances the properties of concrete while enabling it to become the safest form of CO2 sink in the world. The cement and concrete industry are struggling to use the CO2 they produce and we want to convert their CO2 emissions into concrete.”

Commenting on the investment, Juan Nieto, General Partner, Zacua Ventures and former investor at Cemex Ventures added:

““When we first met the C4C crew, we just clicked – their team brings the right skills to the table, turning their breakthrough mineralisation tech into a real game-changer. C4C’s approach has major potential to green up concrete without altering its existing production process, capitalising on the established supply chains. And here’s the kicker – no extra cost for going green, plus it’s already playing nice with regulations, it’s a total win-win for everyone on board. We are particularly enthused by its commendable brief time-to-market, which markedly surpasses alternatives we have encountered elsewhere.” 

Richard Barker, Partner, Counteract, added:

“We really like C4C’s innovative solution for decarbonising cement. The utilisation of a carrier that contains captured CO2 creates a potential drop in solution for a long-standing industry with well-established supply chains. The solution is also complementary with a range of the industry’s other decarbonising pathways currently in development. We also love the C4C team and have been impressed by their deep domain knowledge and tenacious approach to developing the business. ”

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GRIPPLE RAISES OVER £28K FOR LOCAL CHARITY

Gripple, the Sheffield-based, employee-owned manufacturer of wire joiners and tensioners and suspension solutions for agriculture, construction, solar and infrastructure, is celebrating a bumper year for its charitable fundraising activities, raising over £28,000 for the Create a Dream Foundation.

This is in addition to employees raising a total of £25k in their own individual and team fundraising efforts for a number of other local charities, plus the fundraising arm of Gripple, the Gripple Foundation, donates one per cent of its budgeted profit, which includes supporting over 100 charities and community causes. The Gripple Foundation also provides up to £500 match funding per employee per year to encourage their own individual fundraising efforts too.

Back in January 2023, the Gripple Foundation, announced that Create a Dream Foundation was its nominated charity for the year.  This is a Sheffield charity that helps fund gifts and trips for seriously ill young people in South Yorkshire.

The money raised by Gripple will be put towards trips to exciting places like Centre Parcs, for Safari Experiences, to Disneyland Paris, to a ride on the Polar Express, as well as contributing towards items for the home and garden creating wonderful and long-lasting memories for families by making their child’s dreams come true.

Ed Stubbs, Gripple’s Global Managing Director, said:

“We are extremely proud of our people for all the effort they have made to raise funds for Create a Dream Foundation – what they’ve achieved is truly inspirational!   What makes this so special is that individuals and teams within the business volunteered themselves for these challenges and did them, often in their own time and with real passion.  It is fantastic that our donation will mean the children who are facing such difficulties can enjoy extra special trips out with their family and friends.”

 

Ailsa Watson from Create a Dream Foundation said:

“A huge thank you to everyone at Gripple for all being such amazing people!  We are so grateful for your outstanding efforts in the past year – it is more than we could ever have hoped for!”

 

Throughout the year, Gripple employees have been involved in a wide variety of different fundraising activities, both for Create a Dream and other local charities.  These include; a charity car wash, cycle challenge, 10k, half and full marathons, the GLIDE Fest Carnival fundraiser, ‘Wear it Pink’ Day, a virtual relay from John o’ Groats to Lands’ End, a dog walking challenge, charity football tournament, Peak District hiking Challenge, plus Cake sales, food sales and raffles across Gripple sites.

Gripple employees have also given up their time and put forward their skills to help in a number of community-based projects, supported by the Gripple Foundation.   This included helping out with decorating a house for Enable Sheffield, which supports people with physical and learning disabilities to becoming independent.  Employees also volunteered with projects such as a River Clean up at Norfolk Bridge, painting a barn for Whirlow Hall Farm Trust, redecoration and repainting for Support Dogs charity when it relocated its premises and creating a wildlife friendly garden for Clifford Primary School as well as helping out at Ben’s Centre, a Homeless Charity in Sheffield. These activities are both motivational, enable team building and help create a strong sense of giving back to the local community.

An employee-owned business, Gripple is committed to its people and is dedicated to its unique culture – ‘the Gripple spirit’ that sets it apart.  The company aims to employ people who share its values – of fun, innovation, passion, entrepreneurship, teamwork, integrity – who are invested in the shared purpose to be a fun, rewarding place to work.

The Gripple Foundation is the charitable arm of Gripple, which is proud to support local charities and good causes, helping to make a positive different in the community.

 

For more details email gripplefoundationcharity@gripple.com or visit the website www.gripple.com.

 

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Residents urged to give their views on energy efficiency

The City of Edinburgh Council is asking residents to give their feedback on a long-term plan for decarbonising heat in buildings and improving energy efficiency.

With one month to go until the consultation closes on 18 February, residents across the capital are being asked to share their views on the Edinburgh Local Heat and Energy Efficiency Strategy (LHEES) and Delivery Plan. Available to take part in online, the results will be used to build on the engagement and consultation carried out to date.

The Council has prepared the Edinburgh LHEES, along with a Delivery Plan, in response to the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. The policy requires all Scottish local authorities to publish a LHEES, and a Delivery Plan, by the end of 2023.

The Edinburgh LHEES sets out a strategic approach which aims to improve the energy efficiency and decarbonise the heat supply of buildings. It also plans to eliminate poor energy efficiency as a driver of fuel poverty.

Using an area-wide approach, the plan addresses all buildings in the Edinburgh area, not just the Council’s own building stock.

The Delivery Plan, which focuses on actions between 2024 and 2028, sets out short to medium term actions associated with the implementation of the strategy. It prioritises areas where actions may be easier, cheaper, or have a known outcome. For example, adding loft insultation means less heat escapes through the loft.

Councillor Cammy Day, Council Leader, said:

“My thanks go to everyone who has taken the time to share their views with us so far. The unfortunate reality is that we are in a climate emergency. There is still time to avert disaster if we take bold and immediate action at the speed and scale necessary. That’s why we have set the ambitious but necessary target for Edinburgh to become a net zero city by 2030.

“Whilst we continue to lead the way in our efforts, we still have a long road ahead to reach our goal in addressing the climate and nature emergencies. As part of our work, I am pleased to welcome the Edinburgh Local Heat and Energy Efficiency Strategy and Delivery Plan which sets out how our buildings can move to net zero.

“The plan is relevant to all owners and occupiers of Edinburgh’s buildings, but it can only be delivered by the combined effort of all of us.  I’m very keen to engage with our residents on this important plan and hope this consultation allows them the opportunity to have their voices heard.”

The consultation closes on Sunday 18 February. Find out more and share views here.

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Boxing clever with West Fraser donation

Pictured is David Connacher, Marketing Manager at West Fraser, and Iain McDonald of The Doghouse Boxing Club

West Fraser Europe has donated £600 to support a local boxing gym which provides training and workouts for members of all ages. The Doghouse Boxing Club, located in Stirling near the company’s manufacturing plant in Cowie, Scotland, was established in 2023 and focuses on providing a healthy exercise outlet for the community through boxing classes and training sessions for both youngsters starting out through to experienced professionals.  The donation will enable the group to continue offering even more expert-led sessions to promote healthy and active lifestyles within the community, as well as act as a social hub in the community.

David Connacher, marketing manager at West Fraser Europe, said: “As a major employer to the local area, West Fraser recognises the importance of supporting the local community and the businesses making a huge positive difference within them. We were more than happy to support the team at Doghouse Boxing Club with these funds and are excited to see it continue its recent trend of knockout success in providing fantastic classes and facilities for everyone across Stirling to enjoy.”

For more information on West Fraser, visit https://uk.westfraser.com/.

 

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Housing affordability to worsen with 7 per cent rise in population

 

More young people look set to live with their parents as buying a home becomes increasingly expensive, the government’s housing accelerator Homes England has warned.

Office of National Statistics has revealed the cost of a home is rising quicker than earnings with affordability ratios increasing from 4.92 in 2002 to 8.28 in 2022.

“Many young people cannot afford to buy homes in their local communities where they have grown-up, due to worsening affordability,” Homes England said in its latest factsheet The Need for Homes.

Alongside this Homes England has quoted Census statistics which forecast the UK population soaring to more than 60m by 2045.

Home Builders Federation, HBF, executive director Steve Turner said:

“Amidst an already acute housing shortage in this country house building is falling sharply. Whilst the government may say it wants to be building 300k homes a year, the policy environment is resulting in us getting further away from that target.”

The National House Building Council’s latest quarterly statistics published last November showed a year-on-year drop of 53 per cent in new registrations with completions down by 15 per cent.

Last financial year just 234,000 new homes were built, down by six per cent on figures for 2019-20 and below the government’s 300,000 new homes a year target.

More infrastructure help and better-resourced planning authorities needed

The housebuilding industry has criticised the government over an anti-development planning system, lack of support for house buyers and under-resourced council planning departments.

“The social and economic implications are stark, and unless the constraints are addressed urgently decent housing will become even more inaccessible, and thousands of jobs will be lost,” said Mr Turner.

The National Federation of Builders, NFB, head of policy and market insight Rico Wojtulewicz said:

“Planning for housing is just one part of the puzzle because we also need the infrastructure to support good placemaking, and this means greater land use. Unfortunately, the government has played planning politics for far too long and this has cost the British public affordable and enough housing, better jobs, regional connectivity and levelled up places.”

Homes England has quoted Office of National Statistics data revealing the cost of a home is increasingly more quickly than earnings. In 2002 the average house price in England was £102,000 and the average salary was £20,739. However, in 2022 this climbed to £275,000 with the average salary rising to £33,208. London was the least affordable place to live with the average house price more than trebling to £525,000 in 2022 compared with an average house price of £174,000 back in 2002.

Conveyancing solicitors Bird & Co said the number of enquiries it received from first-time buyers had slumped from 68 per cent in 2023 compared with 72 per cent in 2020.

Partner Daniel Chard said:

“Constructing new homes loses its purpose if they remain unaffordable, particularly for aspiring first-time buyers striving to step onto the property ladder.”

 Brokers Hank Zarihs Associates said development finance lenders were worried that the current tough sales environment might dissuade housebuilders from developing sites.

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London under-prepared for flooding and extreme heat

Photo Credit: Josh Caius/Ashden

 

London under-prepared for flooding and extreme heat, new report warns – climate charity Ashden highlights inclusive solutions

 

The interim report of the London Climate Resilience Review should prompt decision-makers to bring proven solutions from around the UK to the capital, says climate charity Ashden.

London boroughs, the Greater London Authority and national government must act now to protect the capital’s people, businesses and nature. The report, which Ashden submitted evidence to and was published today, declares that London and the rest of the UK is ‘under-prepared for climate change impacts like flooding and extreme heat’. The final review is expected later this year.

Ashden says decision-makers should replicate successful initiatives from around the UK, to help London’s communities become more resilient to climate change.

The charity has also made ten recommendations for national government. These include more support for risk mapping, natural flood defences, and new homes designed to minimise the impact of extreme heat.

The report points to key strategic opportunities ahead, as well as gaps in the capital’s preparations for more severe flooding, storms, extreme heat, drought and other risks. It recommends ‘a step change’ in adaptation planning and investment.

“We’re delighted to see this London Climate Resilience Review interim report telling it like it is,” says Dr Ashok Sinha, CEO of Ashden. “Londoners, especially the most disadvantaged, are in a very precarious position because of the threat of flooding and killer heatwaves.

“What we need now is action across London to scale up solutions that are proven – these include planting trees that cool public areas and constructing protective wetlands to prevent flooding. Or setting high standards for home building and ramping up retrofitting for warmth and energy efficiency. It’s also essential that national government devolves the powers and funding to enable community-led solutions.”

 

What can London learn from climate future proofing already happening?

 

Ashden delivers annual awards for climate innovation, as well as ongoing support for councils, schools and others tackling the climate emergency. Their work reveals pioneering initiatives that could protect and empower communities in the capital.

Initiatives from Hampshire to Dundee show the power of nature-based solutions, energy efficiency, and low carbon energy innovation. These interventions will help communities stay safe, warm and cool, adapt to extreme weather, and also create stronger economies and greater wellbeing. These wider benefits are crucial to winning public support for climate action.

The London Boroughs of Enfield and Hackney, along with Liverpool and Hull City Councils, have effectively implemented new wetlands, flood defences, and green spaces. Nature based solutions provide natural cooling, water capture and flood protection – as well as mental and physical health benefits.

 

Reducing household energy consumption is one of the most urgent priorities for cutting the UK’s carbon emissions and mitigating climate change, particularly in anticipation of a significant rise in air conditioning use and with 4.6 million English homes currently experiencing summertime overheating.

Organisations are already working around the UK on improving existing building structures to regulate temperatures and provide low-cost, low-carbon energy sources, as well as rethinking how we design new build homes that are fit for the future.

 

Funding to protect the future

 

Making changes to protect communities is undoubtedly an investment in the future. Funding our own climate ‘insurance’ by setting up protective initiatives is crucial to building our resilience to the changing circumstances and increasing energy costs we will all face, says Dr Sinha.

“What is clear is that we have the solutions, but government must get behind them with funding and policy immediately, so that communities and environments are protected.”

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New law promises reform but will planners deliver on it?

By David Norman of Davon

For smaller and medium-sized developers, 2023 was the year that everything took longer. It took longer to find and acquire land, longer to obtain bank funding and longer to get materials delivered but most of all, it took longer to get planning permission.

There was barely a day all year when I didn’t have a discussion with a client involving planning. The industry’s frustration with the ponderous UK system is palpable.

It’s particularly galling for the SME residential developers who are typically our clients because they have fewer resources to deal with the bureaucracy and face more intense financial pressures than the big hitters, notably on cashflow. When you are stretched on a project having shelled out for a parcel of land, planning delays pile up your bank interest. Time is money.

And it is not just delays that eat cash. Even a small development of, say, two houses can incur upfront costs of £30-50,000 in planning and professional fees. For more complex projects, that number can easily top £100,000 when you factor in consultancy fees for a broader raft of planning hurdles such as right to light and environmental studies. Another big-ticket pre-planning bill can be option fees for the landowner.

Unfortunately for developers, banks dislike lending against developments pending planning applications as there are no assets in the project, which means the developer must find the cash.

These pressures have had a cataclysmic effect on smaller to medium residential developers.

According to the Federation of Master Builders, 40 years ago SME house builders delivered 40% of our homes. Today, this figure is just 12%.

Planning is not the only culprit. The FMB says the sector has been hit hard by successive recessions. They report that SME and custom builders say they struggle to access finance and land, but right up there on their list of complaints is the difficulty of navigating Britain’s complex planning system.

Our experience at Davon talking to SME residential developers throughout last year bore that out, so we were pleased to give our support to the FMB’s campaign for:

  • A simplified planning system
  • Making more small sites available for SME developers
  • Investing in local authority planning departments to speed up the planning process

For years, successive governments have promised action to tackle the housing shortage and streamline the planning system. Yet the industry sees little or no progress and has become at least sceptical if not cynical.

The latest government initiative is the Levelling Up and Regeneration Act which became law in October 2023. It is supposed to speed up the planning system, hold developers to account, cut bureaucracy, and encourage more councils to put in place plans to enable the building of new homes.

The Act promises that new developments will be more attractive with better infrastructure such as GP surgeries, schools and transport links. Development will be shaped by local people’s democratic wishes, enhance the environment and create neighbourhoods where people want to live and work.

That all sounds great, but will it happen?

One feature of the Act that caught my eye is to give councils the power to work directly with landlords to bring empty buildings back into use by local businesses and community groups, “breathing life back into empty high streets”.

Many people in the property and construction world will tell you that converting offices and retail premises into residential is fraught with difficulty, but it can be done successfully.

Take our client, Barker Homes for example. We have provided mezzanine finance for a series of their conversion projects, the latest being a £10.5 million redevelopment to transform a town centre commercial building in Hemel Hempstead into 40 luxury apartments.

If planning policy changes can smooth the path for more of these and other kinds of conversion of redundant buildings, that would be welcome.

It will be necessary if the Act is to deliver on its objectives, which include directing growth to support the regeneration of brownfield sites and renewing and levelling up towns and cities with more homes in Britain’s largest urban centres including in the North and Midlands.

The government says that this will not only make the most of brownfield land but also maximise the use of existing infrastructure, taking advantage of structural change in urban land use and reducing the need for unnecessary travel.

One criticism we often hear is that national and local planning is not joined up. To some extent this is addressed in the Act with new joint spatial development strategies to bring together planning authorities across boundaries where there are strategic reasons to do so.

But at the local level where our clients operate, it is the promise of a speeded up, streamlined planning service that is most appealing.

Previously mooted planning overhauls have met with reticence from the planners themselves but this time, at least publicly, they are being supportive.

The Act has been backed by the planners’ professional association, the Royal Town Planning Institute, although its chief executive, Victoria Hills, said if it is to be successful, the government must engage frequently with planners to ensure that new regulations and policy work as intended and deliver on those promises.

To me, that is the crux of the matter. There have been too many initiatives for change in the system that have fallen by the wayside as well as promises to deliver on housing and regeneration that have been little more than re-hashed versions of existing policies.

What the industry desperately needs is action, and that means ensuring that planners are on board with the spirit of the new law.

 

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