Planning policies and property investors – What you need to know
Just days after winning the General Election, Labour announced a consultation on a revised draft of the National Planning Policy Framework (NPPF), with hopes to take ‘decisive and early’ action.
It marks a significant shift in how the government plans to utilise the planning system as a catalyst for economic growth and urgent housing delivery.
With the consultation open until September 24th, now is the perfect time for landlords, property investors, and stakeholders in the housing market to get up to speed on these key changes.
Here’s a breakdown of the most important updates and what they could mean for you.
New Standard Method for assessing housing needs
One of the most crucial changes in the draft NPPF is the introduction of a new Standard Method for assessing housing needs. Labour has set an ambitious target of 1.5 million new homes over the next five years, with the new method designed to provide stability and certainty for all stakeholders. This change aims to address the shortcomings of the current approach, supporting a more aggressive house-building strategy.
For HMO landlords and property investors, this uplift in housing targets is a positive signal. More housing development could mean more opportunities to expand your portfolio, especially in areas where demand for affordable, high-quality shared housing is high. However, it also means staying informed and agile to adapt to changes in local planning policies that will accompany this new housing push. Such policies could include the protection or promotion of specific types of housing choice relevant to the area. Therefore, it is important to understand how your proposals could help diversify housing offering and prevent an over concentration where needed.
Prioritising brownfield and Grey Belt development
To meet the new housing targets, the draft NPPF proposes that the default answer to brownfield development should be “yes.” Additionally, Local Authorities struggling to meet their targets will be encouraged to review Green Belt land, with the introduction of a new “Grey Belt” designation. This Grey Belt could serve as a strategic solution to unlocking land that, while not pristine greenfield, could still be viable for development.
This could open new opportunities for landlords and investors, particularly in urban areas where brownfield sites are more common. These areas often have existing infrastructure, making them attractive for HMO conversions or new developments. However, navigating the local development framework and understanding the implications of a Green or Grey Belt designation will be crucial.
High-quality design and local design codes
While some references to “building beautiful” have been removed from the draft NPPF, the emphasis on high-quality design remains strong. Local-led design codes will continue to play a key role in ensuring that new developments are not only functional but also aesthetically pleasing and in keeping with the character of their surroundings. This is particularly relevant in historic settings such as Conservation Areas, so do carefully review any dedicated guidance from the Local Authority detailing their expectations for proposals in these locations.
For property investors and landlords, this continued focus on design quality is a reminder that well-designed properties are more likely to attract and retain tenants. Whether you’re developing new HMOs or refurbishing existing properties, aligning with local design codes will not only ensure compliance but could also enhance the appeal and value of your properties.
Climate change and renewable energy
The draft NPPF acknowledges that climate change is one of the greatest challenges of our time and underscores the planning system’s role in mitigating its effects. The government’s steps to unblock onshore wind development and proposals to support renewable energy are just the beginning of a broader effort to integrate sustainability into the planning process.
It is also important to familiarise with your local policy and guidance context. There may be planning requirements that require specific levels of carbon reduction or even a minimum EPC rating for certain types of development.
For landlords, especially those managing HMOs, this shift towards sustainability could mean future-proofing your properties by investing in energy-efficient systems and renewable energy sources. Not only will this make your properties more attractive to environmentally conscious tenants, but it could also result in long-term cost savings through reduced energy bills and potential government incentives.
Beyond energy, building climate adaptation and resilience into projects is increasingly necessary to safeguard investments. Depending on your location, this could include measures such as flood mitigation or strategic shading. Following the introduction of Biodiversity Net Gain, it may also be worth engaging with an ecologist early to identify and incorporate any gains required into your proposal designs.
Health promotion in planning decisions
Another significant element of the draft NPPF is the focus on health. The government is seeking input on how national policy could better promote health through local plans and planning decisions. This could involve ensuring that new developments include green spaces, are accessible by foot or bike, and contribute to the overall well-being of residents.
For HMO landlords, this emphasis on health could influence the types of amenities and features that tenants will look for. Properties that are designed with well-being in mind, such as those with access to outdoor space, good natural light, and proximity to parks or health facilities, could become increasingly desirable. This could also mean that local authorities might prioritise such developments.
