Housebuilder launches legal challenge over scrapping of regional strategies

One of the UK’s largest privately-owned housebuilders is bringing a judicial review action over the government’s decision to axed regional planning strategies, it has been reported.

The Times said that Edinburgh-based Cala Homes lodged papers with the High Court yesterday, seeking permission for judicial review.

The Communities Secretary, Eric Pickles, had announced in May the prospective abolition of regional strategies. This was formalised when he laid an order in Parliament on 6 July revoking them with immediate effect. He said communities would “no longer have to endure the previous government’s failed Soviet tractor style top-down planning”.

According to The Times, Cala Homes is arguing that Pickles acted unlawfully as the move required primary legislation and that there should have been transitional arrangements.

Graham Cunningham, managing director of Cala Homes (South), told the paper: “The government has acted unlawfully in not putting any transitional arrangements for planning in place. There is a policy vacuum. We urgently need to build new homes, especially in the South East of England, but housebuilders have been left with no direction.”

The housebuilder’s challenge is understood to focus on a proposed 2,000-home development in Winchester. Planning permission was turned down in June, and Cala argues that no appeal can take place in the absence of planning policy.

Recent research by Tetlow King Planning for the National Housing Federation claimed that local authorities have scrapped plans for 85,000 homes in the aftermath of the government’s decision to axe regional housebuilding targets.

The Housing Minister, Grant Shapps, yesterday announced plans to incentivise communities to build homes through the government’s New Homes Bonus scheme.

He also said that changes to the planning system would make it faster and more responsive.

A consultation on the scheme will take place following the spending review.