‘Holiday’ on planning permissions and removal of affordable housing obligations part of government plans to boost construction

The government has announced plans to ease planning rules on building extensions and remove restrictions on house builders as part of a range of new measures to boost the construction industry and provide more new homes.

The plans, which could boost important markets for joinery products, were outlined by Local Government Secretary Eric Pickles during a housing and planning statement to MPs on 6 September 2012. They include:

• Reducing restrictions on the need for planning permission for one year. Homeowners will be able to extend to six or eight metres beyond the property's rear wall ( depending on whether it is a terraced or detached property) without getting full planning permission. Permission is currently needed for any change to a home that extends more than three metres from the property's rear wall in the case of a terraced property. Restrictions will still apply in conservation areas.

• Businesses will be able to expand their shop by 100 metres squared, industrial units by 200 metres square, and shops and offices will be permitted to develop up to the boundary of the premises.

• Removing restrictions on house builders. Developers who can prove that council's affordable housing requirements make the project unviable will see them removed. It is hoped that this will help unlock 75,000 homes currently stalled due to sites being commercially unviable.

• New legislation for Government guarantees of up to £40 billion worth of major infrastructure projects and up to £10 billion of new homes. The Infrastructure (Financial Assistance) Bill will include guaranteeing the debt of Housing Associations and private sector developers.

• Up to 15,000 affordable homes and bring 5,000 empty homes back into use using new capital funding of £300m and the infrastructure guarantee.

• An additional 5,000 homes built for rent at market rates in line with proposals outlined in Sir Adrian Montague's report to Government on boosting the private rented sector.

• Thousands of big commercial and residential applications to be directed to a major infrastructure fast track and where councils are poor at processing decisions developers can opt to have their decision taken by the Planning Inspectorate. More applications also will go into a fast track appeal process.

• 16,500 first-time buyers helped with a £280m extension of the successful 'FirstBuy' scheme, which offers aspiring homeowners a much-needed deposit and a crucial first step on the housing ladder.

BWF Chief Executive Iain McIlwee commented on the proposals;

"There are some positive developments here, but most importantly the Prime Minister is right when he says that the Government must stop dithering.  The entire construction sector needs a boost and needs it fast.  Many of these measures were requested by ourselves and other lobby groups back in March.  The time for talk and rhetoric is over, the coalition must drive change through the various local and central government bottlenecks that stand between fine words and positIve outcomes."

There are 400,000 planning applications processed, with almost 200,000 for residential improvements, many of which are for changes such as conservatories or extensions. These are key markets for timber products and the construction industry has welcomed the government’s plans. It is hoped that the plans will deliver up to 70,000 new homes and 140,000 jobs.