Planning costs - Consultation begins on planning reform with planning fees drastically increasing

The Government finally published consultation last week on improving the performance of local planning authorities which would be facilitated by an increase in Planning fees by potentially 35% on Major schemes and by 25% on other applications which has caused concern among developers, homeowners, and businesses alike.

For developers, the increase in planning fees are another challenge which sits alongside the increase in funding and construction costs which have made moving some schemes forward more of a test.

Despite the challenges that come with higher planning fees, if these increases directly fund the department’s ability to efficiently look at applications and help to improve the recruitment and retention of skilled planners and other technical staff this can only be a good thing.

Mike McGovern, Director of Vorne LTD said "The planning process is inherently one that holds risks for developers and investors, although these can be worked through and managed successfully with the right team and experience. It is often the case however, that the unknowns surrounding timescales for obtaining responses and determination (despite mechanisms like PPA’s) can truly deter investment."

"The retail sector, in particular shopping centres, have struggled with the unknowns in planning timescales in recent years where investors have had to look at changing their assets from retail only investments to development opportunities. This change often has to happen rapidly and proves problematic due to the uncertainty of investing in the planning process. When it is unclear how long investors would need to hold the asset to add development value it may ultimately make them question whether to wait and see out the planning process or to exit to allow others who are specifically looking for these types of opportunities to take on the development process."

"While moving forward or not with a development play is a complex decision and certainly site and time specific, the unknowns on timescales of an application going through this process is one I truly believe should be removed as a hurdle on these much-needed regenerations of our town centres."

It will be interesting to see how the discussion evolves but we hope this is the first steps in real change for the planning process.