Discovering the truth over the power of developers and business

The power that developers and businesses have over construction projects has become a contentious issue in recent years.

When questioned about developers, councils quickly came out criticising the perception that they’re ‘in bed’ with the developer or that the council themselves are the developer.

In fact, local authorities have little control over this – it’s the landowner who chooses a developer. This leads many to believe construction firms can get away with all sorts.

Developers follow strict rules

But property development firms do have to follow strict council instructions on what they can build which are set out in local planning policy.

Local authorities’ Development Briefs state the kind of development they would like to see on a site and what would likely be approved.

“If a poor quality development comes forward, the council will refuse it,” says Cllr Keith House, leader of Eastleigh Borough Council, and he adds developers are unlikely to want the costly exercise of submitting more than once.

There is an argument however to say that developers do have an unfair advantage over the average member of the public.

Odd ones out in Europe

Writer and Guardian columnist George Monbiot points out in his ‘Captive State’ book that the UK is the only country in the EU where developers are allowed to appeal a decision but local people do not have that right.

This is true, and is something the coalition government are thinking of changing, but this review has met a lukewarm reception from the industry.

Stephen Harrison from Southampton City Council says: “It’s democratic but...there is the issue that if there are appeals continuously then delivery might be hampered.”

Developer Mike Emett from Cala Homes adds: “It would be an absolute bureaucratic nightmare. There are very few applications that are not contentious... it would be absolute mayhem.”

Money buys planning permission?

In the George Monbiot book, the author claims that developers can bring in the best lawyers that money can buy to effectively force through their plans when they taken them to appeal.

However, former housing minister John Healey suggests that the governments realise this as a potential problem.

He says that it is the duty of councils to ensure that citizens are not “at a disadvantage by developers being more informed and more expert.”

The introduction of the free Planning Aid service is meant to help communities with this, he adds.

Profit maximisation?

A further public perception that runs through media coverage of development projects is that the high density developments that we’ve seen in recent years are solely for the developer’s own profit.

CPRE planning officer Kate Houghton thinks the reason is a combination of the need to be profitable and to meet the housing targets that were until recently imposed by government.

Central targets try to minimise construction on green field sites, a reason why many green field developments that do go ahead contain a high number of dwellings.

Paul Jackson from Test Valley Borough Council says that local authorities themselves set the quota for affordable housing and construction firms have to follow it.

“I suppose you could say we dictate this to the developer,” he explains.

However, homes for the open market are determined by the developer so they can chose the mix of property type as they wish, but they are required to actively seek the views of the public.

Commercial business investment

Private businesses wishing to set up in an area are treated kindly as local authorities are keen for their investment.

They have considerable say over where they build a headquarters, but this is only from a list of options drawn up by councils and public in the ‘Local Development Framework’.

“We have teams in place to match sites to clients,” Stephen Harrison points out.

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Discovering the truth over the power of developers and business

The power that developers and businesses have over construction projects has become a contentious issue in recent years.

When questioned about developers, councils quickly came out criticising the perception that they’re ‘in bed’ with the developer or that the council themselves are the developer.

In fact, local authorities have little control over this – it’s the landowner who chooses a developer. This leads many to believe construction firms can get away with all sorts.

Developers follow strict rules

But property development firms do have to follow strict council instructions on what they can build which are set out in local planning policy.

Local authorities’ Development Briefs state the kind of development they would like to see on a site and what would likely be approved.

“If a poor quality development comes forward, the council will refuse it,” says Cllr Keith House, leader of Eastleigh Borough Council, and he adds developers are unlikely to want the costly exercise of submitting more than once.

There is an argument however to say that developers do have an unfair advantage over the average member of the public.

Writer and Guardian columnist George Monbiot points out in his ‘Captive State’ book that the UK is the only country in the EU where developers are allowed to appeal a decision but local people do not have that right.

This is true, and is something the coalition government are thinking of changing, but this review has met a lukewarm reception from the industry.

Stephen Harrison from Southampton City Council says: “It’s democratic but...there is the issue that if there are appeals continuously then delivery might be hampered.”

Developer Mike Emett from Cala Homes adds: “It would be an absolute bureaucratic nightmare. There are very few applications that are not contentious... it would be absolute mayhem.”

Money buys planning permission?

In the George Monbiot book, the author claims that developers can bring in the best lawyers that money can buy to effectively force through their plans when they taken them to appeal.

However, former housing minister John Healey suggests that the governments realise this as a potential problem.

He says that it is the duty of councils to ensure that citizens are not “at a disadvantage by developers being more informed and more expert.”

The introduction of the free Planning Aid service is meant to help communities with this, he adds.

Profit maximisation?

A further public perception that runs through media coverage of development projects is that the high density developments that we’ve seen in recent years are solely for the developer’s own profit.

CPRE planning officer Kate Houghton thinks the reason is a combination of the need to be profitable and to meet the housing targets that were until recently imposed by government.

Central targets try to minimise construction on green field sites, a reason why many green field developments that do go ahead contain a high number of dwellings.

Paul Jackson from Test Valley Borough Council says that local authorities themselves set the quota for affordable housing and construction firms have to follow it.

“I suppose you could say we dictate this to the developer,” he explains.

However, homes for the open market are determined by the developer so they can chose the mix of property type as they wish, but they are required to actively seek the views of the public.

Commercial business investment

Private businesses wishing to set up in an area are treated kindly as local authorities are keen for their investment.

They have considerable say over where they build a headquarters, but this is only from a list of options drawn up by councils and public in the ‘Local Development Framework’.

“We have teams in place to match sites to clients,” Stephen Harrison points out.