Introduced earlier this year, it is anticipated that the Planning & Infrastructure Bill will be crucial in solving the UK's longstanding housing shortfall. Yet, as the bill works its way through parliament, it risks being rubber stamped without addressing several prominent concerns, simply to catalyse housebuilding.
From empowering councils to set their own planning fees to potentially weakening environmental protections, Alan Coleman, Relationship Director at Secure Trust Bank Real Estate Finance, explores the risks currently associated with the Planning & Infrastructure Bill and the key considerations that must be made in order to raise confidence levels throughout an industry rocked by economic uncertainty.
Centred around streamlining the delivery of new homes and critical infrastructure across the nation, the Planning & Infrastructure Bill signals a potentially significant step forward in the government's ambition to 'get Britain building again'. Crucial to this, however, will be revitalising a housebuilding industry in desperate need of a confidence boost - only then can we consider the viability of the government's well-documented target of building 1.5 million homes before the close of this parliament.
In recent years, the housebuilding sector has faced a perfect storm of challenges, including rising material costs, labour shortages and supply chain disruptions [1]. In all honesty, you could replace 'housebuilding' from the previous sentence with any other industry and it would still be factually correct. But possibly the most infuriating constraint experienced by almost every developer continues to be planning delays [2].
Various initiatives have already sought to address this issue, such as the New Homes Accelerator programme and the deputy prime minister's promise of a 'devolution revolution' [3]. The Planning & Infrastructure Bill seeks to take that momentum further - particularly by empowering councils to set their own planning fees, with the goal of reinvesting proceeds to improve planning services. This is just one of several proposals of the bill's directives that could swing the pendulum of its success - but why?
Devolution with direction
On the surface, providing councils with more freedom to set their own fees to recover the costs incurred from processing and determining planning applications could be a positive move. In theory, historically under-resourced planning departments could invest in addressing their own labour shortages, resulting in larger teams capable of processing applications more efficiently and reducing the bottleneck that continues to plague housebuilders [4].
However, a consistent and fair approach will be essential as without proper guardrails, there's risk of a 'postcode lottery', where developers could be disproportionately affected by fees that vary wildly between regions. Here, it's important to note that planning fees will be capped at cost recovery and the government retains the power to intervene if fees are deemed excessive. However, early clarification on what can be classed as 'cost recovery' is necessary so all councils follow the same procedure. Additionally, some form of adjustment for SME developers - especially those delivering affordable or small-scale housing - may be worth exploring to avoid unintended financial strain [5].
Supporting growth without sacrificing the environment
The bill's approach to environmental regulation has understandably drawn scrutiny over the past few months. While the government affirms that the Nature Restoration Fund could provide an alternative means of meeting environmental responsibilities, concerns remain about the potential for inadvertent environmental harm [6].
The most recent reports that developers may be permitted to build on green spaces without compensating for biodiversity loss have sparked concern from stakeholders including the Chartered Institute of Ecology and Environmental Management (CIEEM) [7]. Their feedback that the proposals are indicative of environmental regression underscores the need for clearer, more collaborative engagement.
This conversation represents a wider issue - how to balance the urgent need for housing with the equally pressing need to protect the natural environment. It could be argued that the solution lies in shifting from broad guidelines, such as those associated with nutrient neutrality, to clear enforceable rules which may help to instil greater confidence on both sides of the debate.
Keeping SMEs in focus
It's vital that the Planning & Infrastructure Bill doesn't overlook the role SME developers can play in delivering more homes. SMEs are essential to building diverse, tailored housing, yet often face disproportionate challenges in navigating the planning system when compared to their larger, more financially resilient competitors. The state of the planning system has undoubtedly had an impact on SMEs who have seen their contribution to new homes decline from 40% in the 1980s to around 10% today [8].
To ensure this figure does not fall any further, the government recently unveiled a host of initiatives aimed at empowering SMEs to play a greater role in tackling the housing crisis and delivering its new homes target by 2030. These include streamlined planning for smaller developments, specifically for those with up to nine homes, which will be prioritised by planning officers, bypassing full committees.
Biodiversity Net Gain (BNG) requirements will also be eased for these projects, close to the point of exemption, whereas those with 10-49 homes will benefit from a 'revised simplified metric'. While not directly related to the Planning & Infrastructure Bill, finding that balance between preserving biodiversity and building new homes may have just become slightly more difficult.
Getting the foundations right
The Planning & Infrastructure Bill arrives at a pivotal moment. It offers real opportunities to accelerate development and address systemic challenges - but to do so effectively, it must be shaped with nuance, clarity, and long-term thinking.
That means more than just increasing the pace of approvals. A successful planning system must ensure we're building in the right places, with the right infrastructure and green space to support vibrant, sustainable communities. Getting homes built quickly is important - but getting them built well is essential.
If the bill can strike this balance, it could help unlock the high-quality homes and infrastructure Britain needs - not just today, but for generations to come.
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