It's touted as a solution that requires no financial commitment but promises a way out of trouble. While I remain sceptical of its effectiveness in many cases, there is one industry where reform is exactly what is needed: the Planning Industry in the UK.
In the world of government and media, the buzzword these days seems to be "reform." It's touted as a solution that requires no financial commitment but promises a way out of trouble. While I remain sceptical of its effectiveness in many cases, there is one industry where reform is exactly what is needed: the Planning Industry in the UK.
It is an industry that has often fallen short of its mission, leaving most people with a sense of frustration due to the prevention of progress. Here, I'll explore some of the issues and opportunities for reform within the planning sector.
Barriers on All Scales:
From small-scale restrictions like being denied permission to change the colour of your front door to larger-scale hurdles where even an ice cream manufacturer is ordered to remove solar panels, the planning industry has often been associated with hindrance rather than facilitation. However, let's now zoom out to a national level and examine the bigger picture.
The Land Use Challenge:
The UK stands out as having a particularly poor record in land use among developed nations. One aspect that frustrates me about the housing discourse in the media is the reliance on various statistics that muddy the waters. The truth is, in a market economy like the UK, the price of housing is determined by the balance between demand and supply. If prices are rising, it simply means that supply is failing to keep up with demand. That's the essential statistic we need to focus on.
Learning from Success Stories:
To shed light on the potential of planning reform, let's look at the case of New Zealand. They faced similar challenges, with skyrocketing house prices in cities like Auckland. However, their situation began to change in 2016 when Auckland introduced a new local plan. The plan reclassified significant portions of land previously designated as 'Single House Zone' into more flexible categories such as 'Mixed Use Suburban Zone,' 'Mixed Use Urban Zone,' and 'Terraced Housing and Apartments Zone.'
The Power of Up-Zoning:
This simple change allowed the housing supply to catch up with demand. By 2021, the city had 5% more homes than it would have without the up-zoning, resulting in a 2% decrease in average rents and a significant 6% drop for individuals with lower incomes. Astonishingly, this progress was achieved without the need for major construction efforts by the council.
Embracing Planning Reform in the UK:
The success story of Auckland's planning reform should serve as an inspiration for the UK. It demonstrates the positive impact that well-executed changes in planning regulations can have on housing supply, affordability, and the overall quality of life for citizens. It's time for the UK to adopt a similar mindset and embrace planning reform as a means to tackle our housing challenges.
Finding the Right Balance:
Of course, planning reform must strike a balance between encouraging development and preserving the unique character of our communities. It requires careful consideration of local context, environmental sustainability, and the needs of future generations. However, we must also recognize that a rigid and overly cautious approach to planning can hinder progress and exacerbate the housing crisis.
Collaboration and Innovation:
To bring about effective planning reform, collaboration between government bodies, local authorities, developers, and communities is crucial. By fostering a spirit of innovation, exploring new design and construction methods, and streamlining bureaucratic processes, we can create a more efficient and responsive planning system.
In summary, reforming the planning industry in the UK is not about disregarding regulations or compromising the integrity of our communities. It is about reimagining our approach to land use, embracing change, and finding innovative solutions that allow housing supply to catch up with demand. We have the opportunity to learn from success stories like Auckland and implement reforms.
Feel free to reach out to me to discuss this further, any insights are useful - george.garrett@oysterpartnership.com