What can SME developers be doing to prepare for the coming changes to planning?
The Planning Bill was a prominent feature of the
2021 Queen's speech and is due to go before parliament in the Autumn. The bill aims to simplify
the planning system and increase the level of new homes being built. Plans will separate land into a
three-tier traffic light system.
Growth areas - As long as local planning rules are met, outline planning permission will be granted for new homes, shops, schools and more.
Renewal areas - Specific types of small scale developments will be granted planning but
restrictions would remain on certain kinds of developments.
Protected areas - Stringent restrict ions will be in
place for all developments.
What does this mean for developers? The key issue
is how the planning bill will impact the operations of SME developers.
Planning risk is a challenge for any developer when assessing the viability of a project. Only by understanding all the variables that can come into
play during site acquisition, design, planning and
build can we establish the realistic viability of a development.
With changes coming to the planning system, it's
vital that SME developers understand how these will affect their projects, both present and future. and
what actions they need to take to protect themselves.
How to prepare
As you know, every development is different and comes with a host of risks and challenges. As well as the costs of planning and design, other site-specific costs can rear their heads to give you a financial headache.
By employing a development consultant at the very start of a project, you can get on top of the many variables that can prove problematic to your project.
While it might seem expensive to include a development surveyor when the plan for a development is in its formative stages, it could save you from making a poor investment and save you from wasting time pursuing financially unviable projects.
What does a development consultant do? Development consultants or development surveyors are specialists who are trained in the RICS planning
and development pathway to advise on projects. particularly with regards to financial viability. The overriding benefit of hiring one comes from the fact that they can give you a full picture of how viable a potential development could be, ensuring that all variables are considered.
For a developer who's delivering projects above the affordable housing threshold, a Planning Financial Viability Assessment will be required.
This assesses the amount of affordable housing you need to provide or the level of financial contribution you'll need to make instead, on top of everything else you need to consider; this is another area that can be handled by a development consultant.
As well as assessing project viability, some development surveying firms also act as agents who sell or source development sites. Creating a good pipeline of development sites is key to steady cash flow and prompt delivery.
Building relationships with people who understand your requirements and are actively looking for sites will help you maintain that pipeline.
If you want to get ahead of planning risk while bringing in your projects on time and on budget, hiring a development consultant is the best way to go. Not only will it provide peace of mind on the viability of your projects, but a good surveyor will make the path smoother and save you considerable time and money.
For more information, contact us.
