George Osborne has announced a raft of new planning measures in a document titled Fixing the Foundations: Creating a more prosperous nation.
Development on brownfield land is to be boosted by automatic planning permission for sites using a new “zonal system” and enhanced compulsory purchase powers for brownfield land.
New permitted development rights mean developers will no longer need to apply for planning permission to extend buildings to the height of neighbouring properties in London.
London and Greater Manchester will both receive more power over planning in devolution deals.
The document also outlines how the government will have more power to intervene if a local authority is not addressing its housing need in its local plan.
Melanie Leech, chief executive of the British Property Federation, welcomed the changes but said: “In order for these changes to make a difference, we strongly urge government to begin a dialogue with both the public and private sectors on how to address the severe shortage of funds which is afflicting local planning departments.
“The private sector will need to play a part in helping to address this funds shortage, and this needs to be explored fully if we want these new measures to work.”
Chris Selway, senior director at BNP Paribas Real Estate, said: “Compulsory purchase powers are a vital tool to assist developers and unlock opportunities for private investment. They are too little utilised by local authorities and we would urge government to make the regime faster and fairer when it is reformed in the autumn.”