From approval to completion – why developers should remain focused on planning conditions
By Emma Millington
Embarking on a new build development can be challenging but exciting, and with a keen focus on the detail developments can run smoothly. Planning permission and more specifically planning conditions underpin the requirements for the development and cannot be understated. Failing to comply with such conditions can lead to significant repercussions for developers. This can be easily avoided. Let’s explore the potential costly consequences of non-compliance and how developers can prevent these.
The impact of non-compliance
By not complying with planning conditions the consequences of this can be far reaching, not only for the developer but also a buyer too.
Enforcement action
One of the most severe repercussions of failing to comply with planning conditions is the potential for enforcement action by the Local Authority. The result of such action can range from financial penalties to construction being halted. The action taken by the Local Authority depends on the severity of the breach and the length of time there has been non- compliance.
Delays
Unresolved conditions can cause substantial delays in the construction timeline and also in the plot sale process. If planning conditions are properly addressed these costly delays can be avoided.
Increased cost
Additional work by a developer could be required to satisfy an unresolved condition incurring further costs on the development affecting budgets and profit margins. It could also result in further legal costs if disputes arise.
Damaged reputation
Planning conditions are considered an integral part of building a sustainable community. When these conditions are not complied with the public may interpret this a lack of concern over regulation, quality and the needs of the local community. Proactively dealing with planning conditions creates a positive environment for all and avoids any negative publicity or reputational damage.
Strained relationships
Not adhering to the conditions set out by the Local Authority may impact the relationship between a developer and the Local Authority and buyers. Create trust and confidence for buyers and prevent additional scrutiny from the Local Authority by ensuring planning conditions are complied with.
Help your development progress smoothly
For a development to progress smoothly planning conditions and their compliance can be reviewed throughout the various stages of the development:
- Pre-construction - prior to work starting at the development you can ensure that any pre-commencement planning conditions have been satisfied.
- Sales - as you begin to sell plots make sure to check whether the planning permission includes any pre-occupation conditions. These conditions will stipulate requirements and a timescale that the developer must have complied with prior to the plots becoming occupied.
- Build complete - there will be some planning conditions which cannot be fully complied with until the development is complete. Although all the plots may be sold and works completed it is still important that these final points are dealt with accordingly.
- Apply for discharge - as a developer you may have complied with the planning conditions but don’t be caught out! Many conditions require information to be submitted to the Local Authority and are not formally discharged until written approval is held. On the sale of a plot this approval will be requested by a buyer’s solicitor and If approval is sought in advance delays in the sale are prevented.
- Continuous monitoring - some planning conditions may not be complied with until works are completed as the development progresses. With the busy nature of property development it can be easy to forget about some planning conditions or their requirements for discharge. If planning requirements are reviewed regularly throughout the development this can be avoided and along with any unwanted costly delays.
Top Tip
When formal discharge of a planning condition has been obtained from a local authority don’t forget to provide this to your solicitor instructed on the plots sales as this will keep them updated and the buyers satisfied that planning has and is being adhered to.
Complying with and discharging planning conditions throughout a new development plays a vital role in a successful and smooth running project. By continually reviewing the planning requirements and ensuring compliance and discharge, developers do not need to worry about costly and time consuming issues arising from planning.
At Switalskis, our aim is to help developers and management companies access the legal support that is vital to the success of the site. Contact us today - call 0800 138 0458 or email help@switalskis.com