Greater focus needed on site suitability, says Savills

The government should consider national policy initiatives to restore the link between planned economic growth and other growth, such as housing, according to a new report by real estate advisor Savills.

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Actively planning for a greater range of site sizes, and delivering more small sites alongside the larger sites more suited to master developers and major housebuilders, would create opportunities for SME builders and new entrants and expand the total development capacity in England

A crucial element is sustainable development, which will mean difficult decisions are required by local planning authorities (LPAs) including the potential release of Green Belt land. Effective policy will need a ‘larger than local’ approach, experts say.

The report notes that although the distribution of housing need at a national level is being addressed where local plans are up to date, it is the types of schemes gaining consent which will need to be fully aligned with market demand in order to maximise potential market absorption.

Michael Davies, planning director at Savills in Birmingham, said: “Clearly, the type of sites gaining planning consent are not always aligning with the aims of the Local Plan.

"The absorption rate of new housing will be constrained if only bringing forward housing types which serve a small part of the market. In order to fully meet housing need, the planning system needs to be designed so it both sets an appropriate overall housing target, and compels LPAs to engage with developers and land promoters to consider how suitable the sites they are bring forward are to deliver a range of housing requirements.