Creating a planning system that works for investors and developers is crucial to “unlocking a further wave of investment” into UK commercial real estate, the investment minister has stressed, insisting the government is working to ensure more balanced regulation.
Speaking at UKREiiF 2023, minister for investment Lord Dominic Johnson said the Government was “very aware” of the property sector’s frustration with the planning system, adding it was “very keen” to improve regulations for everyone.
Johnson stressed the UK had to get the balance right between creating a framework that allowed free development while protecting the rights of people living close to areas designated for construction.
He said: “How we regulate our economy is at the essence of our success, we are a liberal, property-yearning democracy, and that requires powerful frameworks. On the one hand, to ensure that we have an appropriate amount of friction between free development and people’s rights, in terms of the people who own existing properties.
“On the other, we have to have a forward-thinking planning framework that enables you as planners, as investors and as developers to have the certainty and predictability which will allow you to generate your appropriate level of return and give us the physical properties and infrastructure that we so desperately need.”
He added: “We are extremely keen to make sure that the planning system works, it works for you, and it works for the citizens of this country. If we get that balance right, we will see a huge further wave of investment coming into this country.”
Earlier this month, property experts warned the UK’s “sclerotic” planning system was stalling development as well as the wider economy, with investors unable to respond to emerging property trends and investment opportunities.
They said this left the UK unable to take advantage of its ability to attract talent and management teams, stressing that planning reform was, ultimately, a “political decision” that was “holding back” the economy.
Last December, the Government launched a consultation seeking views on its proposed approach to updating to the National Planning Policy Framework. Led by the Department for Levelling Up, Housing, and Communities, the work also sought views on how national planning policy is accessed by users.
The National Planning Policy Framework was introduced in 2012 to consolidate the government’s planning policies for England, guiding local decision-makers on its national policy objectives.
CoStar is a media sponsor of UKREiiF 2023.