Government Proposes Changes To Help Build New Properties Quicker
If you are a property developer, whether you are looking for development finance or not, you will be interested to hear of some new proposals put forward by Brandon Lewis, the Housing and Planning Minister. They relate to “section 106” agreements that are also known as planning obligations.
These are agreements entered into between local planning authorities and property developers in conjunction with planning consent. They could relate to such things as improvements to transport in the locality, creating open spaces for the use of the public and the inclusion of more affordable housing in the development.
Sometimes, these planning obligations can lead to there being delays in the property development project being approved for many months which may not be good for the parties involved in the scheme such as the developer and of course those people looking to purchase the homes. Mr Lewis has recently submitted new proposals designed to make the process more streamlined and quicker.
Some of these proposals include laying down specific time limits for the “section 106” agreements to be approved, a process to resolve disputes that often lead to delays in the project, those involved in negotiating these planning obligations should start discussing them at the start of the planning application instead of near the end and the introduction of standard documents.
There is of course a housing shortage here in the UK and, should these proposals be approved, let us hope that they will not only speed up the planning approval process for such schemes but also encourage the creation of more businesses involved in property development.
For those of you either already involved in or considering entering property development, you will be pleased to hear that there are many lenders providing development finance. In this respect, why not get in touch with us to discuss your requirements in detail.