Implementing Planning Permissions

Introduction

In a highly competitive land market, securing sites with planning permission is a crucial strategy for developers looking to maximise value and minimise risk. Sites that already have permission in place offer a more predictable pathway to development, reducing uncertainties related to the approval process. However, obtaining permission is only one part of the equation; implementing it effectively is just as critical.

From a planning perspective, several key considerations must be addressed to ensure the smooth delivery of a project. Developers need to be aware of planning conditions, planning obligations, and potential legal and financial constraints, such as CIL and Section 106 agreements. Engaging an experienced planning consultant can help navigate these complexities and identify opportunities to enhance site value. This article explores the essential factors in implementing planning permissions and outlines ways to optimise outcomes for a successful development.

Understanding the Planning Permission

Before moving forward with a development, the first and most crucial step is to thoroughly review the approved planning permission. This includes examining the decision notice, planning conditions, approved drawings, and supporting documents to gain a complete understanding of what has been granted.

The decision notice outlines the specific terms of the approval, including any planning conditions that must be discharged before work can commence. These conditions might relate to matters such as materials, landscaping, drainage, or highway improvements. Failure to address them properly can lead to costly delays or enforcement action.

Reviewing the approved scheme in detail also helps developers identify key constraints that may impact implementation. These could include site access limitations, environmental restrictions, or obligations under Section 106 agreements and CIL payments. A skilled planning consultant can assist in assessing the feasibility of the scheme and ensuring compliance with all necessary requirements. Crucially, they can also assist in enhancing consents and highlighting risks.

Planning Conditions

Once planning permission is granted, understanding and managing the associated planning conditions is critical to ensuring a smooth development process. Conditions attached to a planning approval can significantly impact project timelines, costs, and legal compliance, so developers must carefully assess what further approvals are required and when they need to be discharged.

Planning conditions generally fall into several categories, each with different implications for implementation:

• Pre-commencement conditions – These must be discharged before any work begins on site. They often relate to matters such as construction management plans, archaeological investigations, contamination reports, or drainage strategies.
• Pre-works conditions – Some conditions must be met before specific stages of construction take place, such as foundation works or installing key infrastructure.
• Pre-occupation conditions – These must be satisfied before the completed development can be occupied. They may include requirements for highways improvements, landscaping, noise mitigation, or sustainable drainage systems.
• Compliance-only conditions – Some conditions do not require further formal approval but must be adhered to throughout the construction process, such as restrictions on working hours or ecological protections. They can also secure aspects of the planning permission, for example, cycle parking or vehicular access layouts.

Amending Planning Conditions

In some cases, planning conditions can be amended to provide greater flexibility in implementation. Many pre-commencement conditions can be varied to align better with construction phasing, preventing unnecessary delays.  This was the case at our project at Durnsford Road where the planning conditions were extremely inflexible and many required discharge prior to commencement.  We used a Section 96A non-material amendment to adjust the timing of several planning conditions. By amending these conditions to be discharged prior to above-ground works, the client was able to begin demolition sooner, accelerating the project timeline.

Community Infrastructure Levy (CIL)

The Community Infrastructure Levy (CIL) is a key financial consideration for developers when implementing planning permissions. It is a charge imposed by local authorities on new developments to help fund infrastructure such as roads, schools, and community facilities. Mismanagement of CIL liabilities can result in significant financial penalties, so it is essential to review and address these obligations before commencing works.

Reviewing CIL Liability Before Commencement

• Confirming the CIL Charge – The local authority issues a CIL Liability Notice outlining the total amount payable. Developers should verify that the charge has been correctly calculated.
• Accounting for Existing Floorspace Deductions – Existing floorspace that has been in lawful use for at least six months within the last three years, from the date of the decision, can be deducted from the chargeable amount.
• Ensuring All Required Notices Are Submitted – Several CIL forms must be submitted at the correct stages to avoid surcharges.
• Correcting Errors Before Work Begins – If there are discrepancies in the CIL Liability Notice, developers should engage with the local authority before commencing work.

In a recent project in Reigate where we were dealing with planning conditions, we received a CIL Liability Notice which did not account for the existing garages’ floorspace, which should have been deducted. By promptly providing evidence of lawful use, we successfully secured a revised notice, removing the entire £21,000 liability.

It is worth noting that any section 73 applications may change the CIL liability.  Consideration should be given to increased liability and the abatement mechanism to ensure any previous payments are factored into the total liability.

Section 106 Obligations

Section 106 (S106) agreements are legally binding planning obligations that developers must adhere to as part of their planning permission. These agreements are designed to mitigate the impact of development on the local community by requiring financial contributions or specific non-monetary commitments.

Common obligations include:

• Financial contributions towards education, healthcare, transport, or affordable housing.
• Non-monetary requirements, such as car parking permit restrictions or car club memberships.
• Public realm works, such as landscaping or cycle storage provisions.

Developers must ensure that all required notices are served at the correct time and that obligations are fully discharged. Many obligations must be fulfilled before occupation, and failure to do so can delay final sales or handovers. Engaging a planning consultant can help ensure that all Section 106 obligations are met efficiently.

Variations to Planning Permissions

Once planning permission has been granted, developers often have opportunities to enhance value and reduce costs by making variations to the approved scheme.

Section 96A: Non-Material Amendments (NMAs)

A Section 96A application allows for minor changes to an approved planning permission that do not significantly alter the nature of the development.

Section 73: Minor Material Amendments

A Section 73 application allows for minor material amendments to an approved scheme by varying or removing conditions attached to the original planning permission. These applications provide flexibility to optimise development layouts, external designs, or parking arrangements.

When advising our clients on implementing their permissions, we regularly turn to amendments to enhance developments.  For example, at our Aveline Street project, we used a Section 96A non-material amendment to:

• Remove the lift, significantly reducing construction and maintenance costs.
• Rationalise the material palette, saving costs while maintaining quality.
• Reconfigure the layout, converting a 1-bed flat into a 2-bed flat, increasing the sales value.

At Albury Road, we also secured amendments through a section 73 application to amend the layout and add additional roof lights to enhance the quality of space provided and improve the projected GDV for the project.

For both projects, we reviewed the planning permission and recommended bespoke strategies to deliver an uplift in value. We also managed the conditions to ensure that these were discharged ahead of (i) commencement of the development and (ii) prior to the occupation of the development. Purchasing a site with planning is supposed to remove some of the headaches, however, implementation presents its challenges in the context of ever-increasing build costs. Securing enhancements, whilst ensuring conditions are discharged efficiently, can not only increase the value of the project but ensure that the programme is kept.

Conclusion

Successfully implementing planning permissions requires careful review, compliance, and decision-making at every stage of development. From understanding planning conditions to managing CIL liabilities and Section 106 obligations, developers can unlock value and improve project viability by taking a proactive approach.

For further guidance on planning obligations and implementation strategies, visit the Planning Insight website or reach out to a planning consultant for expert advice.