This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.
This week's Queen’s Speech has several impacts for developers and property professionals.
In summary, the Government’s proposals appear to have the overall objective of speeding up procedures and easing unnecessary bureaucracy involved in infrastructure projects and development more generally. However the government has at the same time imposed additional obligations, such as zero carbon standard housing, which may limit the extent to which the objectives are met.
Infrastructure
By far the most significant announcement was that the Government is to introduce an Infrastructure Bill with the aim of boosting investment in infrastructure and making changes to the planning system in order to “improve economic competitiveness”.
The significant elements of the bill are:
- continued investment in the road network;
- simplification of the process for making changes to Development Consent Orders (DCOs) and speeding up the process of appointing the Examining Authority; and
- enabling high-value government land to be sold for development by bringing legislation forward.
The bill will create a platform for sustainable growth as well as generating jobs across various sectors including transport and nationally significant infrastructure projects.
Planning
The Infrastructure Bill will allow the discharge of certain types of planning conditions upon application if, within a prescribed time period, a local planning authority has not notified the developer of their decision. This will have important implications for developers, local planning authorities and legal professionals.
Housing
The reform of the planning law regime is intended to increase housing supply and enable more people to own their own homes, which is good news for property developers and those involved in the construction industry.
The Government is also to implement a zero-carbon standard for all new homes, which will have an impact on home-builders. In essence, the Government will use building regulations to set a minimum energy performance standard enabling the remainder of the target to be reached through “allowable solutions.”
Energy
Turning to the energy sector, the Queen announced that “the bill will enhance the United Kingdom’s energy independence and security by opening up access to shale and geothermal sites and maximising North Sea resources”.
The Government’s plans will allow “fracking” to take place under people’s homes without their permission. Though this will have positive implications for those in the oil and gas industries, it is a controversial proposal and will no doubt face public resistance. The Government is currently undertaking a consultation on this policy so the final detail is yet to be concluded.
Finally, the Government will continue “to implement major reforms to the electricity market” and ministers will also seek to address climate change by establishing a global agreement on this issue.
We will continue to monitor how these proposals develop as the legislation makes its way through Parliament.
