Development and Management

Are you currently struggling to obtain planning permission for an urban development? Or perhaps you’re looking ahead to a future project and are curious about potential planning-related issues?     Unfortunately, securing planning permission for urban developments can be littered with challenges. Having worked with hundreds of developers over the years, we understand how frustrating the planning system can be.   We recently sat down with Victoria Lane, planning expert and Area Manager at Waterman Aspen, to get her latest insights on urban development planning permission, challenges, processes, useful resources, predictions and more.   Q. What are the most common challenges developers face when seeking urban planning permission?   A. Political pressures play a significant role, especially given the recent appointment of the new Labour Government. The shift from the Conservatives to Labour and their vision to ‘Get Britain building again’, means there’s an increased focus on current and future planning processes. And, of course, we have the local political scene which filters down from the national agenda, which can actually be more of a challenge for developers to navigate. For instance, if developers are looking to build a HMO or a small apartment, they will potentially face local pressures from residents and councillors, regarding local-level issues, such as parking, highways and nearby amenities.   From a local Government perspective, particularly a local authority perspective, there’s a distinct lack of resources, which has been widely reported upon by the media in recent months. Labour intends to create an additional 300 planning officer roles within local councils. However, this number equates to just 0.75 planners per authority, which simply isn’t enough to deal with the backlog in applications that already exists and keep up and deal with all future applications efficiently.   Q. What impact do the decisions of local councils and planning authorities have on urban developments?   A. They have a significant impact. Planning delays can lead to delayed construction start dates that then lead to developers being hit with unwanted interest and late fees. Where more major developments are concerned, developers do have the option of going down the planning performance agreements route. While it does come at an additional cost, it is designed to expedite the process and make sure deadlines are met.   Generally speaking, planning applications for minor schemes (fewer than ten units) should typically take eight weeks to complete. Developments involving more than ten units should take a maximum of 13 weeks. The scale of Government funding is determined by local authorities’ Key Performance Indicator (KPI) performance – the flip side of this for developers is that they may have their planning applications refused because of these KPIs. If Local Planning Authorities (LPA) are determined on hitting KPI’s for issuing decisions and an application is likely to go over the prescribed timescales significantly, then they may just issue a refusal rather than working with the applicant to address any issues and agree an extension of time. It is rare but it does happen, particularly where the LPA is less willing to engage.If this happens, they will need to appeal the decision, which can add an additional time to the overall process.   Q. How do planning frameworks shape urban developments?   A . It all stems back to Government policies. The emerging National Planning Policy Framework is very much focused on a new standard methodology for calculating housing need and issues surrounding Green Belt including the introduction of Grey Belt.   Each local authority must prepare a Local Plan which follows the main thrusts of policy within the National Planning Policy Framework. These take an extraordinarily long time to prepare, and presently, local authorities are holding back if they are in the early stages of preparation or rushing it through prior to the adoption of the emerging National Planning Policy Framework due to the impact it may have upon their housing need requirement.   In order to shape urban developments, developers need clear guidance set out within planning policy which explicitly confirms what is and is not acceptable in planning terms and provides guidance for those grey areas of the planning system.   Q. What are the strategies that developers can use to increase their chances of obtaining planning permission in urban areas?   Ideally, they should speak to the relevant authority to seek pre-application advice before formally submitting their application. This is especially important for more complex developments. It is important to note however, that any advice received from the relevant authority is not binding and this will be stated in their response. By taking on board advice received in the pre-application response, developers should hopefully see their application being completed more swiftly and the process being a lot smoother as many of the issues would have been addressed in the submission.   It is also important to research the planning history on the site, this will determine whether a similar proposal have previously been submitted and whether it was permitted or refused. This provides valuable insight into the likelihood of receiving planning permission. Alongside policy the planning history is an important consideration which shouldn’t be ignored.   Q. How can developers work proactively with local authorities to streamline the approval process?   A. Stay in regular contact with your case officer, for example email or call them a couple of days after receiving your validation letter to introduce yourself and make them aware that you are available to discuss the proposals should they have any queries or concerns which will allow you to address them to hopefully receive a positive outcome. Finally, always follow up after the consultation period is over. You cannot underestimate the importance of communication between you and the case officer.   Q. How can developers effectively engage with local communities to gain support for their projects? A. Developers involved in delivering major projects need to talk to the local communities that are going to be impacted by the development. For example, they may want to host open sessions in which they share their proposals and hold consultation sessions before embarking on the planning process.   Communities like to voice their opinions, especially if they have a vested interest in the end result. Developers must be open to having discussions and implementing changes based on the feedback that is shared with them. This will help make sure their project(s) are welcomed instead of being rejected by local residents and businesses.   Q. What future challenges do you anticipate there being in relation to obtaining planning permission for urban developments, particularly in high density areas?   A. Traffic generation and sustainability-related challenges have always been rife and will undoubtedly continue to exist for the foreseeable future. While city centre living may be geared around easier accessibility for cyclists and pedestrians, developers still need to cater for motorists.   However, there’s also the fact that city centre developments may evolve even further over the next five to ten years as people decide they want to move out of them in favour of a slower pace of life. In turn, this will present a whole new challenge in itself – how do we encourage them to stay where they are? If we are unable to, what is the next available most suitable use for the vacant building?   Q.What advice would you give to developers who are new to navigating the planning permission process within urban settings?   Maintain good communication with all of the relevant people and organisations, i.e. local authority planning teams. Also, appoint a good planning consultant and follow their advice.   Q. Finally, which tools or resources should developers use to help them prepare for their next urban development planning application?   A. The Planning Portal website is particularly useful. It contains a whole host of information, which includes consent types, the decision-making process, sustainability and planning and appeals. And as obvious as it may sound, developers should keep tabs on the latest Government planning and wider housing-related news headlines.   At CrowdProperty we are passionate about the projects we fund. We work closely with developers to help them navigate every opportunity and challenge and ensure a smooth, successful project. We provide realistic financial projections and are here to support you every step of the way.

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As a multimillionaire property investor and founder of one of the largest property-training companies, I know there are a few things that people starting out in the U.K. property market often ask or need to know. So, whether you are an overseas investor looking to enter the U.K. market or a British citizen getting started in property for the first time, this article will help you begin the process of buying your first investment property in the U.K. 1. Double the price doesn't mean double the rent Sometimes, people will come to me and say that it is impossible to get high returns on investment from renting out rooms in an HMO (house in multiple occupation), for example. In some cases, these people are even landlords themselves who have properties in high-end and upmarket areas. What people don't realize is that just because a house is in a more expensive area, it doesn't mean it will command that much higher rent per room. A simple exercise you can do is to look up property prices in an area via a property portal, such as Rightmove or Zoopla, and find out what price suitable houses are selling for. Then go to a site that advertises rooms to rent, such as SpareRoom and look at the "room wanted" advertisements to see the level of demand and the prices people are willing to pay. Do this for an expensive city in the U.K. and then do it with a cheaper city. You will soon see that investing in more upmarket areas will significantly eat into your potential returns. 2. The North and South divide While there are great areas to invest in all over the U.K., as a general rule of thumb, it often makes sense to look towards the north and the midlands, which has cheaper property with higher rental returns. Many people like to invest in London because of the rate of capital appreciation, but I believe it is never sensible to rely on this. I prefer to invest for cash flow; that way, if the market turns against me, I can happily hold on to the property while it generates profits. Even if capital appreciation is your main concern, however, it is better to buy somewhere that has bottomed out and is trending upwards rather than somewhere that has already boomed and at some point will be heading back the other way. Find the hidden gems that are seeing new employers open up or that are in the process of being regenerated. That way you can benefit from both cash flow and rising prices. 3. You don't need to live where you invest It makes sense to find a "patch," an area that you can get to know and understand the property market in. But that doesn't have to be where you live. The area you live in may not have the high-return properties you are looking for, or be otherwise unsuitable. You simply need to find somewhere close enough that you can drive to and spend some time there getting to know the place. If you are an overseas investor, it makes sense to joint venture with someone who knows the local market, especially if you are unable to come to the U.K. to do the initial research yourself.