28 October 2021
Budget 2021 – key points for landowners and developers
- The government has committed an additional £1.8bn to unlock over 1m new homes over this spending review period (to 2025/2026).
- A pledge of 180,000 new affordable homes, with 65% outside London.
- £300m of grant funding to metro mayors and local authorities to develop smaller brownfield sites.
- £65m investment in the digital transformation of the planning system – new software initially rolled out to 175 local authorities.
- £9m parks funds for “pocket parks” the size of tennis courts on 100 neglected urban spaces
- Residential Property Developer Tax of 4% on companies with profits of over £25m to raise £200m over 10 years for removal of flammable cladding from high rise buildings. BTR and student accommodation developers are excluded
Investment in new housing is positive news for landowners and developers and given that planning decisions fell by around 25% over the past 12 months and can currently take around 24 weeks to be made, the investment in the planning system is a welcome announcement. Digitisation should also make it easier for developers to identify development opportunities.
However, developers will need to consider the location of brownfield sites and how they fit into the current community and existing infrastructure. Sites may require some remediation and the costs should be reflected in the sale contract. Potential development sites may still have issues such as restrictive covenants, rights of light and adverse possession which will require investigation and rectification, where possible.