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“Densification” of city centres

What does the “densification” of inner-city areas mean for social housing? Thaine Wilson and Marie Constantine explain.

The Government recently revealed its long-term plan for housing in England, with a focus on the regeneration of existing properties and the “densification” of inner-city areas.

At the core of this new plan lies a drive to build homes in places with the highest growth potential, primarily large cities and towns where housing is already in high demand.

The ideas within the plan build on the Conservative’s existing Levelling Up framework, which is targeting the regeneration of 23 towns and cities.

The new plan will be backed by the funding of many projects including the Brownfield, Infrastructure and Land fund, Homes England and other landmark investments in the Midlands and North West.

However, at the heart of this new approach are changes to the planning system that aim to speed up developments, while giving communities a say on development in their areas.

The impact on social housing

The Government’s plans are likely to significantly alter the landscape of the social housing sector in several ways.

As a result, there are some areas that social housing landlords and organisations should be aware of.

Development facilitation on underutilised sites

The Government is keen on the densification of inner cities, noting that our population density lags behind comparable Western nations. The core idea is to maximise opportunities by developing lesser-used sites in regions with high demand.

Notably, there will be a consultation on new Permitted Development Rights. This is aimed at providing clarity over specific development types and how design codes would apply, ensuring the preservation of local character. These changes may simplify converting larger department stores, space above shops, and office spaces.

Rural communities also gain attention, with provisions that encourage farm diversification and ease in holding outdoor markets.

Combined, these measures  could open up new opportunities for social housing development across England in sites that were previously challenging to develop.

Planning system overhauls

Efforts are in place to tackle the inherent bottlenecks in the planning system. The Government has earmarked a £24 million Planning Skills Delivery Fund to address planning backlogs and skill gaps.

A new specialised team backed by £13.5 million in funding, termed the “super-squad,” will be instrumental in accelerating major housing projects. This initiative will commence in Cambridge before extending to the eight specified Investment Zones in England.

Developers should anticipate an increase in planning fees, a result of the recent consultation aimed at better-equipping planning departments.

This measure should help to speed up the planning process and mean that new social housing can be built quickly.

Centralised development and regeneration

The Government’s inclination towards central development is evident in its response to the consultation about the National Planning Policy Framework.

There is a clear intent to:

  1. Prioritise developments on locally approved sites.
  2. Encourage councils to be flexible when conditions alter the viability of the original plans.
  3. Promote the use of small brownfield patches, giving SME builders greater certainty.

Later in the year, we expect the introduction of the Levelling Up and Regeneration Bill to operationalise the Government’s reforms.

This may present a new opportunity for social housing organisations to meet with the central government and consult on projects that might otherwise face opposition.

Emphasis on Building Safely

Safety remains paramount. Through the Building Safety Act 2022, a foundational framework has been set to ensure accountability and shield leaseholders from bearing the costs of rectifying others’ errors.

New residential structures exceeding 18m will soon need a second staircase, echoing the sector’s demand for clarity. We advise you to anticipate transitional provisions to ensure ongoing projects’ viability.

The Cladding Safety Scheme will extend to all qualifying buildings, protecting leaseholders from costs linked to addressing dangerous cladding issues.

These reforms signify a substantial shift in the housing sector, and it’s essential to be well-prepared to adapt to both the opportunities and challenges these changes present.

Thaine Wilson is a Partner and Deputy Head of Social Housing and Marie Constantine is an Associate at Birketts.