The Government released its response to the National Planning Policy Framework (NPPF) consultation and among many amendments, has recognise the challenges faced by SME housebuilders by formally recognising a ‘medium sized site’ of between 10 and 49 homes.
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “After more than a decade of being let down, SME housebuilders and in particular NFB members were anxious that our medium sized site proposal of between 10 and 40 homes would be tweaked or removed after consulting all bodies. Yet, Labour did not flinch and have delivered for SMEs by recognising that a site of 10 to 49 homes should not be treated in a similar way to one of 100 or 1,000.
The medium sized site is not a silver bullet, but creates an opportunity to ensure that SMEs, our industry trainers, retainers and supply competitors have a pathway to ensure their survival and growth.”
While the medium sized site will not be a standalone site size and remains under the classification of ‘Major’ (more than 10 homes), it will achieve some ‘carve outs’ such as being able to avail of ‘permission in principle’ rules. However, the proposal permitting medium sized sites to pay cash in lieu of affordable homes has been rescinded.
Homes for older people will be supported as a delivery need, and Military homes will be classified as affordable.
The Government has also decided not to pursue a minimum percentage of social rent homes but instead let local plans set them.
Where there is a frequency of 4+ trains per hour, new developments around train stations must deliver 35 dwellings per hectare (dph) and 45 dph where frequencies rise to 6+ trains an hour.
New planning guidance will be released which seeks to limit the use of viability assessments and rather than setting national minimum affordable home requirements on ‘Golden Rule’ qualifying developments, LPAs have discretion to reduce them.
Rico Wojtulewicz, Director of Policy and Market Insight at the NFB, said: “SMEs train 80% of construction apprentices, intrinsically respond to local housing need. create the capacity for non-market housing and proportionately deliver the most affordable housing. Labour has recognised and understood that, turning a promise to help SMEs into action, not only by introducing a medium sized site but also requiring 10% of local plan housing to be delivered on them.
House Builders Association (HBA) members have already been in touch to congratulate myself and the board on our medium sized site campaign but also reminding us that this is the start of reinvigorating our regional builders. This means finding solutions when the Government reassesses how the medium sized site could support SMEs, such as permitting in lieu cash payments instead of delivering affordable homes or being exempt from the Building Safety Levy. And ensuring that the new classification streamlines planning in as many ways as possible, for example, limiting planning conditions and pushing for local plans to deliver 20% or 30% of homes on sites of fewer than 50 units.”
