Builders' Merchants News

Planning reform risks recovery

Published:  17 September, 2010

LONDON: Housebuilders have warned the Government that its overhaul of the planning system has created a "policy vacuum" putting recovery in the sector at risk.  

The Home Builders' Federation, in a written submission to the Communities and Local Government (CLG) Committee, warned that councils are scrapping thousands of planned homes because the government has ditched housing targets before formally introducing its new localism policy, which provides a financial incentive for councils to build houses.

Law firm Hogan Lovells also submitted evidence to the committee on behalf of ten organisations, including seven developers. Michael Gallimore, head of planning at Hogan Lovells, said: "There is a serious risk that no amount of financial incentives will be enough to incentivise some communities to support and welcome major development."