Being an SME property developer in the UK, what can be done to help housing provision?

Whilst in the midst of a national housing crisis, where demand desperately outstrips supply, meaningful action is required from across the housing industry. This article highlights a real time perspective on some of the challenges faced by an active SME property developer in the UK and what could be done to expedite the delivery of housing...

THE PLANNING SYSTEM - WE NEED TO FUND LOCAL PLANNING AUTHORITIES  (LPA’s) PROPERLY 

It’s no secret that the UK had a chronic housing shortage yet, if you were a politician and it wasn’t negatively affecting you directly, would you genuinely care? The UK doesn’t build enough houses for the increasing demand. In turn, this prevents similar generational opportunities and promotes generally a decreased standard of living. When asked property developers usually refer to planning as one of the greatest challenges faced. It’s no secret that local planning authorities (LPA) are underfunded and understaffed, inevitably forcing somewhat more skilled professionals towards the private sector. Although the funding of LPA's are a factor directly outside of a developers control, this is not the strongest footing (no pun intended) to begin with. We do sympathise with Planning Officers and the associated volume of work they consistently take on, it’s no small feat which is commonly unacknowledged by the applicant when concerned about the progress of their own application.

A classic example of the real time challenges faced in planning today can be taken from a minor dwelling application for 1 x new build application we have currently pending. Key facts from the image below; submitted End of Nov 23’, validated start of December 23’, decision not made upon end of the statutory determination period end of Jan 24’, at present no Case Officer assigned and no request for an Extension of Time (EoT). All of which is supposed to have been decided within two months of validation when in reality little has progressed. 

No matter the applicant, whether big or small, homeowner or developer, they usually remain unclear which in turn has a knock on effect in the active delivery of improving existing or providing new housing.  SME property developers are up against it. They usually don’t land bank, risk more and wait a long time for minor scheme decisions. We urge for the planning system to be re-designed in order to give thought to supporting small developers to enable the country to focus on significantly bolster the provision of housing. It would be great to see new teams specifically supported to provided housing promptly. It's likely that constrained land wouldn’t be targeted and the utilisation of land and buildings in urban settlement areas would occur. If funded properly, decision times could decrease which in turn would increase the chances of housing provision. 

NIMBY - LET THE QUALIFIED CASE OFFICER DECIDE WITHOUT NOISY NEIGHBOURS

The majority of people believe new houses should be created to aid with housing supply for a growing population and future generations. Now tell those same people that the proposal for new housing is near them, or a conversion of a commercial building, or a development on green belt land and commonly the ‘Not in My Back Yard’ (NIMBY) opposition appears. NIMBY’s usually have little regard for the opportunities usually once afforded to them in the form of being able to buy their home, at a reasonable price. As an SME property developer, NIMBY’s utilise precious resource in the form of time. Although they may meaningfully comment on material considerations, they usually aren’t qualified Case Officers tasked with making the ultimate decision. If a NIMBY is very dismissive of new housing, it’s common that they may become somewhat of a ring-leader and stir up opposition. Recently, in relation to one of our own pending applications. Recently, we witnessed a NIMBY go door-to-door working to influence the decision of others, practically not leaving neighbours alone until they committed to objecting. This is just one example of the challenges faced by neighbours in the planning process, every developer who has been around the block a few times has their own tales. NIMBY’s tend not to believe that building homes will increase the quality of housing in their area and enable those marginalised from buying a home an opportunity. Case Officers are trained professionals who have studied rigorously for years, they usually take into consideration all aspects and make fair decisions when able to. We’d urge for a streamlined decision making process without the input of numerous parties for minor applications. However, when on larger strategic sites, we would encourage communities to get involved given the significant infrastructure impact major developments tend to have. 

LOCAL POLITICS - LET THE QUALIFIED CASE OFFICER DECIDE WITHOUT LOCAL POLITICS

Councillors and Civic Societies play an important role in communities yet shouldn’t be allowed anywhere near determining planning applications. Simply put, they are unqualified in this field and should leave it to the professionals. Planning Case Officers aren’t as concerned about winning votes or staying in power and shouldn’t have to feel influenced or contradicted to by colleagues unable to professionally critique applications. Commonly, we see political influence as a crippling factor when it comes to decision making. Usually, it can be a who you know relationship which channels the political sway. This works both ways, and have seen a 'Grant' and 'Refusal' of permission dependant on who knows who. Again this is wrong, and no relationship should stem from bias to influence a planning application. From our own recent experience, we recently had a leader of a Civic Society (based within the local LPA) randomly objecting on a minor new build application, only to find out that they’d been lobbied. Again, the SME property developer is up against it when they intend to sustain a business and deliver good quality housing for communities.

RISK Vs. REWARD

When providing a need so essential in the form of housing, why are property developers perceived in a negative light. It is easy to ignore and forget that they take the risk in participating in a broken planning system and should be rewarded. Very few actors meaningfully create good quality homes. SME developers tend to be more concerned with the quality of the end product given it’s their livelihood at stake in comparison to volume house builders. The next generation needs more homes, and although land is a finite resource there is plenty of it to go around if the shackles are taken off. Without major reform, which is not centred on politics our prediction is that house prices will rise over the coming years, further exacerbating pressure on the rental and home ownership sector. We believe empowering SME property developers should be a national priority. The current housing crisis is felt by the majority, not the minority.