June 6th, 2016. Luke Egan
Could a New Bill Speed Up The Property Developing Process?
They say time is money, but when it comes to investing in and developing property you want to take your time to ensure the job is done properly. So, how can you speed up the process to maximise your profits? Well, an announcement in The Queen’s speech last month may hold the answer.
Changes Afoot with the Neighbourhood Planning and Infrastructure Bill
On the 18th May 2016, the Queen entered Parliament for the annual state opening where government legislation is laid out for the coming year. In this, the new Neighbourhood Planning and Infrastructure Bill for England and Wales was introduced.
It is claimed that the new bill will ‘reform and speed up’ the planning process in England and Wales by providing local authorities with more power over neighbourhood developments. It is also hoped it will make the process more transparent by editing compulsory planning orders to make them ‘clearer, fairer and faster’.
As the Queen stated, this bill is being put in place:
“To support the economic recovery, and to create jobs and more apprenticeships, legislation will be introduced to ensure Britain has the infrastructure that businesses need to grow.”
The plan is to “build more houses and give everyone who works hard the chance to buy their own home”.
Aiding Housing Developments to Bridge the Property Gap
It is no secret, the UK’s housing crisis has hit a high. There is a housing shortage and this creates a huge opportunity for housing developers to optimise. In fact, the National Association of Estate Agents (NAEA) is claiming there are now ten buyers for every home on the market.
The Queen’s speech outlined changes to streamline pre-commencement planning conditions in the hope that this would speed up the process of building housing developments and bridging this deficit. The government said that:
‘The new legislation would tackle the overuse, and in some cases, misuse of certain planning conditions, and thereby ensure that development can get underway without unnecessary delay.’
More About the Bill
As well as the above points, the Neighbourhood Planning and Infrastructure Bill outlines plans for a consultation on the effectiveness of the Land Registry and whether in future it should be privatised, plus the creation of an independent National Infrastructure Commission for ongoing infrastructure projects. It is expected that this NIC will provide informed guidance on possible infrastructure issues and a strategic plan for the country’s changing infrastructure over the next 25 years.
This bill should eliminate the misuse of certain planning conditions to ensure no delay is caused and projects can begin as soon as possible. It is also anticipated that the compulsory purchase order (CPO) process will become clearer and fairer, with a compensation scheme put in place for cases based on the value of the land.
Development Finance at Your Fingertips
If you are interested in a career in property development, even more so now with the announcement of this bill, and you require development finance or a commercial mortgage, we can help. Call us on 02920 766 565 to request a call back from one of our specialists.
Article By Luke Egan
June 6th, 2016
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke