The document summarizes the findings of GL Hearn's 2014 Annual Planning Survey on accelerating housing delivery in London. Some key findings include: - Major planning applications in London increased 32% from 2012-2013 to 2013-2014, rebounding from a post-recession dip. - However, the average time for determining applications remained at 6 months, and applicants generally expressed dissatisfaction with length of the planning process. - Stakeholders including planning authorities and applicants identified barriers like funding, demand, land shortages, and the planning system itself. Reforms were discussed but most felt the system still had significant problems. - Further reforms were proposed to address delays, like reducing information requirements and strengthening pre-application

1. glhearn.com
Annual Planning Survey 2014
Accelerating Housing Delivery in London;
is planning reform working

2. glhearn.com
Alastair Crowdy
National Head of Planning, Development & Regeneration, GL Hearn
Welcome

3. Agenda
• Setting the scene and findings
Shaun Andrews, Head of London Strategy, GL Hearn
• The GLA response
Richard Blakeway, Deputy Mayor for Housing, Land and Property
• The private sector’s response
Gary Yardley, Investment Director, Capco
• The local authority’s response
Stephen Kelly, Regeneration, Planning and Development Directorate, Haringey Council
• Debate, conclusions and next steps
Liz Peace, Chief Executive, British Property Federation
@GL_Hearn #planningsurvey

4. glhearn.com
Shaun Andrews
Head of London Strategy, GL Hearn
Setting the scene and findings

5. In 2012 the market was
subdued post-crash and the
NPPF had just been
published
@GL_Hearn #planningsurvey

6. “We're introducing a presumption in
favour of sustainable development.
The new policy comes into effect
when the NPPF is published next
Tuesday. This is the biggest
reduction in business red tape ever
undertaken”
George Osborne, 2012 Budget Speech
@GL_Hearn #planningsurvey

7. 71% of Applicants and 88% of
LPAs believed NPPF would
lead to no change in
development activity
@GL_Hearn #planningsurvey

8. Our goal was to fuel an open,
factual and constructive
debate during this critical
period
@GL_Hearn #planningsurvey

9. APS Survey 2014
215 Applicants
37 Local Planning Authorities
Conducted June – July 2014
Respondents across England
Major Applications 2014
London (33),
Greater Manchester (10)
and Greater Bristol (4)
FOI and manual search
identified all major applications
Each application read
and data collated
@GL_Hearn #planningsurvey

10. 3,700+ applications reviewed and 500+ opinions
canvassed
APS Survey:
UK wide
Major Applications:
Greater Bristol
2012 2013 2014
Major Applications:
London
Major Applications:
Greater Manchester
2011
* **
NPPF
@GL_Hearn #planningsurvey

11. So in reality, what happened
after Osborne’s
announcement?
@GL_Hearn #planningsurvey

12. In London, applications saw a post-crash fillip, a sharp dip,
then recovery
2011/12 2012/13 2013/14
1,075
775
1,021
2012/13 2013/14
389
294
2013/14
180
LONDON GREATER
MANCHESTER
GREATER
BRISTOL
+32%
NUMBER OF APPLICATIONS
-24%
Source: GL Hearn and Circle Research
@GL_Hearn #planningsurvey

13. All but seven London boroughs have seen application
growth
53%
45%
76%
0%
156%
29%
-41%
20%
116%
53%
12%
-29%
84%
-18%
-6%
74%
61%
100%
18%
109%
-27%
34%
43%
-55%
8%8%
50%
-47%
64%
17%
160%
33%
58%
Source: GL Hearn and Circle Research
@GL_Hearn #planningsurvey

14. Construction activity has risen
35,597
38,502
41,916
44,374
47,187
53,419
59,344
67,018
69,657
75,313
81,391 79,689
65,881
72,800
78,102
71,981
74,922
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: ONS, Construction Statistics, No. 15, 2014 Edition
Value of UK construction output (1997 – 2013)
Current prices (£ million)
@GL_Hearn #planningsurvey

15. Will majors in Greater Manchester bounce back like
London?
2011/12 2012/13 2013/14
1,075
775
1,021
2012/13 2013/14
389
294
2013/14
LONDON GREATER
MANCHESTER
GREATER
BRISTOL
-28%
NUMBER OF APPLICATIONS
-24%
Source: GL Hearn and Circle Research
180
@GL_Hearn #planningsurvey

16. Greater Manchester by authority
3% 0%
-20%
-80%
-63%
21%
-85%
313%
-47%
-5%
Source: GL Hearn and Circle Research
@GL_Hearn #planningsurvey

17. High time for approval
2011/12 2012/13 2013/14
85%
84%
86%
2012/13 2013/14 2013/14
LONDON GREATER
MANCHESTER
GREATER
BRISTOL
95%
82%
93%
Source: GL Hearn and Circle Research
2013/14
87%
COMBINED
AVERAGE
@GL_Hearn #planningsurvey

18. But time continues to be the killer
14% 57% 20% 7%
Very dissatisfied Dissatisfied Neutral Satisfied Very satisfied
Base: All Applicants (215)
Q: Generally speaking, how satisfied are you with the length of time a typical planning application takes to reach a decision?
Source: GL Hearn and Circle Research
NET
-62%
How satisfied are you with the length of time a typical major planning
application takes to reach a decision?

19. Determination time hasn’t improved, and is still 6 months!
2011/12 2012/13 2013/14
34
24
26
2012/13 2013/14
22
2013/14
29
LONDON GREATER
MANCHESTER
GREATER
BRISTOL
VALIDATION TO DETERMINATION TIME
Source: GL Hearn and Circle Research
2013/14
25 weeks
COMBINED
21
@GL_Hearn #planningsurvey

20. Two LPAs hit government target, fourteen come close
12 13 14 14 14 15 16 16 16 17 18 19 19 19
23 23 23 23 23 23
25 26 27 27 28 28 29 29 29 29 30 31 31 32 32 33
35 36 37
39 39
42
46 47 47 48
50
Source: GL Hearn and Circle Research
SUBMISSION TO DETERMINATION TIME@GL_Hearn #planningsurvey

21. And this masks an additional
4–6 months pre-application*
and many months of
discharging conditions before
development can commence
*Source: Straw poll of GL Hearn and BPF members Oct 2014
@GL_Hearn #planningsurvey

22. Some support for PPAs, but most LPAs feel change has
had little impact on development activity
29%
21%
68%
70%
72%
72%
6%
19%
19% 9%
Neighbourhood Plans
CIL
The Town Centre 1st Policy
PPAs
Decreased a lot Decreased a little No impact
Increased a little Increased a lot
Base: All LPAs excluding don’t know (32-34)
Q: And what effect, if any, do you feel each of the following policies have had on the level of development activity in the UK?
Source: GL Hearn and Circle Research
NET
+28%
+16%
-12%
-26%

23. And most Applicants identify CIL as a barrier to growth
5%
10%
4%
25%
45%
19%
47%
35%
56%
59%
20%
9%
20%
35%
Neighbourhood Plans
CIL
The Town Centre 1st Policy
PPAs
Decreased a lot Decreased a little No impact
Increased a little Increased a lot
Base: All Applicants excluding don’t know (160-198)
Q: And what effect, if any, do you feel each of the following policies have had on the level of development activity in the UK?
Source: GL Hearn and Circle Research
NET
+34%
-1%
-45%
-8%

24. 38%
62%
Both parties agree - the system still has significant problems
3%
50%
47%
LPAs Applicants
It’s absolutely fine – don’t make any changes
It’s generally OK – keep it mostly unchanged, but make a few tweaks
It has significant problems – you need to make major changes
Think ahead to next year’s General Election. What advice would you give the incoming
Government, whoever that might be, about the planning system?
Base: All LPAs (37); All Applicants (215)
Q: Think ahead to next year’s General Election. What advice would you give the incoming Government, whoever that might be, about the planning system?
Source: GL Hearn and Circle Research

25. Despite this, we need to build
homes at double the rate
@GL_Hearn #planningsurvey

26. To do so, we need to address the root causes
43%
41%
35%
24%
19%
3%
25%
18%
43%
52%
29%
26%
Securing funding for
developments
Demand from home
buyers with
adequate funds
A shortage of land The planning system The requirement for
affordable housing
CIL
LPAs Applicants
Base: All LPAs (37); All Applicants (215)
Q: Think now about housing delivery. What do you see as the major barriers to increasing the rate of housing delivery?
Source: GL Hearn and Circle Research
What do you see as the major barriers to increasing the rate of housing delivery?

27. Five LPAs outperform when speed is linked to volume
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40 50 60
Numberofapplications(2013/14)
Average time (submission to determination)
Source: GL Hearn and Circle Research
Camden
Westminster
Hounslow
Bath
Manchester City
@GL_Hearn #planningsurvey

28. 3 years of hard data – what’s changed in London?
2011/12 2012/13 2013/14
Source: GL Hearn and Circle Research
34
24 26
Weeks
1075
775
1021
NPPF
Volume
85% 84% 86%
Approval rate
NPPF
@GL_Hearn #planningsurvey

29. Planning reforms so far
• Swathe of reforms under Coalition Agreement, including:
• Localism Act 2011
• NPPF
• Growth and Infrastructure Act 2013
• Further reforms and announcements:
• Conditions - addressing delays
• Local Plans - introducing a statutory requirement
• Changes of use - allowing further changes without planning
• Permitted development rights - further reform
• Statutory consultees - changing thresholds for involvement
• EIA – changes to size thresholds for some Schedule 2 projects
@GL_Hearn #planningsurvey

30. One to watch
Planning authority performance and special measures (2013 Act)
• Submit major applications direct to Planning Inspectorate where LPA
has poor record of performance
• Recent consultation:
• Adjudged as poor performers if 40% or fewer major applications
determined within 13 weeks or where more than 20% of major
applications have been overturned at appeal.
• Councils may continue to deal with the administrative tasks/s106
• Concern: to avoid being ‘poor performer’, Councils may increasingly
use PPAs and take outside the statistics
• Next full round of designations is due in October 2014
@GL_Hearn #planningsurvey

31. What else could be done?
Time for formal review of Killian Pretty report?
(Planning applications: a faster more responsive system ,2008)
• Revisit/consider for major applications:
• Reducing information/validation requirements
• Strengthening pre-application rules
• Strengthening PPAs
• Reviewing timeframes around determination/rewards/penalties
• Effectively engaging with members
• Encouraging delegation
• Considering deadlines for all consultees
• Staged, consistent and clear officer reporting
• Clearer ring-fencing planning application and PPA fees
@GL_Hearn #planningsurvey

32. “We note that current economic conditions are, in the short term at
least, likely to lead to a marked downturn in the number of planning
applications being received by local planning authorities. We would
strongly encourage local authorities to think carefully before making any
dramatic reduction in the number of planning staff in reaction to this.
The results of drastic contractions in local authority planning
departments during past economic downturns are still having an impact
upon the staffing and skills base of the planning system many years
later. A reduction in the number of applications being processed may
thus provide some ‘breathing space’ for local planning authorities to
take time to make improvements to the way they work.”
(Killian Pretty, 2008)
The Big Issue?
“We note that current economic conditions are, in the short term at
least, likely to lead to a marked downturn in the number of planning
applications being received by local planning authorities. We would
strongly encourage local authorities to think carefully before making any
dramatic reduction in the number of planning staff in reaction to this.
The results of drastic contractions in local authority planning
departments during past economic downturns are still having an impact
upon the staffing and skills base of the planning system many years
later. A reduction in the number of applications being processed may
thus provide some ‘breathing space’ for local planning authorities to
take time to make improvements to the way they work.”
(Killian Pretty, 2008)
@GL_Hearn #planningsurvey

33. Final thought!
Develop planning departments, boosting capacity and skills:
• If extra funding is unlikely to come from government, is there a way
in which the private sector can provide financial support which overall
is cost neutral?
• Possibly - if the current process is made simpler and less complex,
and the cost of preparing and supporting major applications reduced
significantly, then planning fees could rise and help better resource
planning departments.
• Short-term - could a programme be created through which local
authorities are encouraged to share knowledge, skills and resources
with other authorities?
@GL_Hearn #planningsurvey

34. glhearn.com

35. glhearn.com
Richard Blakeway
Deputy Mayor for Housing, Land and Property
The GLA response

36. glhearn.com
Gary Yardley
Investment Director, Capco
The private sector’s response

37. glhearn.com
Stephen Kelly
Regeneration, Planning and Development Directorate, Haringey Council
The local authority’s response

38. glhearn.com
Liz Peace
Chief Executive, British Property Federation
Debate, conclusions and next steps