BPF welcomes revised NPPF but stresses need for changes to improve development viability

• Response to consultation also calls for new Spatial Development Strategies to give equal weight to employment alongside housing.
• Local authorities should have to assess need for Build-to-Rent, student accommodation and senior living in Local Plans to ensure housing needs of all groups are met.

The British Property Federation (BPF) has welcomed the revised National Policy Framework (NPPF) as ‘a positive and significant step towards a more consistent and predictable planning system’ but has raised concern that proposals to specify developer contributions when setting Local Plans could impact development viability.

In its response the to the consultation, which closes today (10 March), the BPF sets out a number of recommendations to further strengthen the framework, unlock investment and accelerate delivery across the country.    

Setting developer contributions at Local Plan stage could create delays and impact viability

The revised NPPF proposes that local authorities should be more specific about expected developer contributions and infrastructure requirements when sites are allocated in Local Plans.

The BPF supports the view that Local Plans should set a clear framework for contributions but  warns against ‘front-loading’ detailed discussions on viability and developer contributions as key factors such as scheme design, phasing and infrastructure requirements are often not known until proposals come forward. Attempting to resolve these issues at plan stage could slow down Local Plan preparation and impact site viability.

Spatial Development Strategies – more weighting needed towards employment

The BPF strongly supports the introduction of Spatial Development Strategies (SDSs), which would enable housing, employment land and infrastructure to be planned for at a regional rather than purely local level. 

In its response, the BPF argues that SDSs are too housing-focused and should give equal weighting to employment uses, particularly industrial and logistics space which often spans multiple local authority boundaries, enables the production and movement of goods across the country and supports 4.5 million jobs.  

The BPF recommends that employment land requirements should be set alongside housing targets, informed by real-time market data on demand.

It also suggests that SDSs could operate over a 30-year horizon, supported by a five-year review mechanism, to provide the long-term certainty needed to attract private investment into major housing and infrastructure projects.

Greater recognition needed for Build-to-Rent and the housing needs of specific groups  

The BPF has called for the NPPF to require local authorities to assess the needs of renters, older people and other groups within Local Plans. 

As it stands there is a risk that the NPPF creates a presumption towards market housing for sale, with insufficient support for rental products such as PBSA, Build-to-Rent and retirement living. This not only overlooks the specific housing needs of individual groups it could undermine housing delivery as there are fewer barriers to delivering homes for rent through the economic cycle.

Town centre changes could have unintended consequences 

The BPF welcomes the retention of the ‘town centre first’ principle and the framework’s support for regeneration.  

However, it warns that proposals to remove Primary Shopping Areas could have unintended consequences. While reflecting the shift to more mixed-use town centres and high streets it will potentially make planning and development more challenging in these core areas as it will widen the area applicants have to consider for sequential assessments.

Melanie Leech, Chief Executive, British Property Federation said:

“The revised NPPF more clearly recognises the role development can play in driving economic growth and represents a significant step forward in creating a more efficient planning system across the country. 

“There is a clear and urgent need to deliver more homes across the UK but national planning policy should give equal weighting to employment uses, particularly industrial and logistics which underpins supply chains across the country, supports a wide range of employment and is vital for the delivery of the Government’s Industrial Strategy. 

“Above all, we need clear national policy that is implemented in a flexible and pragmatic way, recognising that no two sites are the same and that the challenges facing large strategic sites are very different to smaller, single-phase projects. This, alongside targeted intervention to address some of the regulatory and tax issues that are impacting viability will get more spades in the ground.”

You can read the full consultation response here.