29 September 2006
Planning Ahead
Obtaining planning permission for a piece of land can greatly enhance its value, regardless of whether or not the development itself is carried out.
Applying for planning permission is both expensive and time consuming and due to recent changes in the law, developers must now ensure that this time and money is not wasted.
Previously, once planning permission was granted, it remained valid for five years from the date of grant. If the development had not commenced prior to expiry of the permission, it was fairly easy for the applicant to obtain an extension to this time frame. This is no longer the case. The introduction of the Planning and Compulsory Purchase Act 2004 made a number of changes to the planning process, some of which are set out below.
Section 51 of the Act, which came into force on 24 August 2005, reduced the period in which a planning permission remained valid from 5 years to 3 years. This change applies to detailed planning permissions, listed building consents and conservation area consents.
Where outline planning permission has been granted, the development must commence within 2 years from final approval of any outstanding reserved matters. Local Authorities have retained the power to extend or reduce this time frame where appropriate, but this will depend on the particular requirements of the development to which the permission relates. For example, if the development is fairly large, an extended time period may be allowed.
Another, perhaps more significant, change resulting from section 51 of the Act is the removal of the right to apply for an extension to the time period imposed by the Local Authority for which a planning permission is valid.
This change was also implemented on 24 August 2005; however, concerns were raised by representatives of the property industry about the effect this would have, which resulted in the change being delayed by one year for those holding existing planning permissions at that point in time. This amendment has therefore only been imposed in full since 24 August 2006. The result is that, on the expiry of a planning permission, a new application will need to be made. There is no guarantee that permission will be granted on receipt of the subsequent application, as the Local Authority will take into account the planning considerations that are relevant at that particular time.
In addition to the above, section 43 of the Act provides Local Authorities with new powers enabling them to prevent repeated applications from developers. They can now refuse to determine a repeat application where they believe the developer is merely attempting to “wear down” opposition to the development. Of course, if the application has been revised in a genuine attempt to address the objections previously raised, the application will be determined.
The changes that have been made will limit the ability of developers and landowners to accrue planning permissions where they have no intention of developing the land and only wish to increase its value. The new time limits are fairly short and will mean that, unless material operations in relation to the development commence within the set time frame, the permission will lapse with no guarantee of another permission being granted
These changes are intended to make the planning process quicker and more certain but developers should be aware of the potential consequences and think carefully before submitting a planning application unless they do intend to commence development or sell the land shortly after permission is granted, otherwise, their efforts may be wasted and this may result in a lost opportunity.
For further information contact Roderick Campbell, Partner, Commercial Property, on 01483 887766 or email him.