Contemporary property development: the role of local authorities

In this exclusive extract from Contemporary Property Development we introduce the key role of the local authority in the development process.

Local authorities have a key role in the development process. This role can be very complex given the range of functions, powers and goals they possess. Local authorities can possess the following range of – sometimes conflicting – powers, goals and functions:

• strategic planning
• detailed land use planning
• development control
• development initiator
• landowner
• economic stewardship of area of responsibility
• representative of the aims, wishes and welfare of all members of the local area.

For convenience we will refer to this list as the concerns of local authorities. Sometimes these concerns are held in a single body, sometimes they are distributed across a range of bodies.

The range of local authorities has always been complex, but it has become more so in recent years. Local authorities, assuming a very loose definition, might be taken to include the Scottish Parliament, the Welsh Assembly and the mayor of London, as well as the various metropolitan councils, county councils, unitary authorities and district councils. The various powers of these authorities are bewildering but a summary can be attempted by looking at the list of ‘concerns’ identified above.

Strategic planning

Strategic planning is concerned with the overall development of an area. The most clear cut example of this is the structure plans prepared at county council level. This is primarily a written (as opposed to a map or plan-based) document that sets out the overall objectives of the local authority concerned with economic development by way of land use. It sets targets for residential development numbers, for example, and also identifies broad areas where these units should be developed and where there could be concern about the development. It can identify objectives and policies regarding conservation. Its remit is very wide but its aim is to set strategic direction for authorities lower down the ladder of authority.

In England and Wales the original concept was that the larger county councils would set the ‘big picture’ for the development of the larger areas they controlled with the detail being implemented by the smaller and more numerous district councils below them. This division has been blurred by the development of different tiers and types of local government. In England, unitary and metropolitan authorities fulfil both the strategic and land use planning and development control functions. In Scotland and Wales, the parliament and assembly have, respectively, taken some of the strategic powers. This has also occurred in London and Northern Ireland.

Land use planning

The land use planning function is a map-based system that should execute the strategic plans laid down by the higher authorities. The UK planning system does not zone land use for particular activities, instead each site is considered on its merits. The local plan system, however, does record and classify both existing and established land uses and also identifies land suitable for development of various kinds. It might, for example, identify current agricultural land that is deemed suitable for residential development. The identification of this land should be in accordance with the strategic objectives laid down in the structure plan. The classification of land into categories of use does not either guarantee that developments of that type will be automatically given the go-ahead, or that non-compliant development proposals are completely barred from success. All development, apart from a few special categories and in special development areas, will require a planning application to be made under development control powers (see below). The plan does, however, give considerable guidance to developers as to what is or is not favoured in the locality. The document is of considerable importance and goes through a long process of preparation and consultation before it comes into use. The normal life of a local development plan is ten years, however even draft plans have considerable weight with the planning authorities, developers and the courts.

The local or town plan was traditionally prepared by the third tier of government: the district, borough or town council. This is still the case, although the power is part of the portfolio of powers of the unitary and metropolitan authorities.

Development control

This tier of government also has the responsibility of controlling existing development as well as planning future development in their area of responsibility. Most activities that require a material change of some kind require planning consent. This includes physical development including new build and refurbishment. It also includes many changes of use. There are exceptions; some minor development by householders including small extensions can be done under the General Development Order without additional permission being required. Activities are also classified under the Use Classes Order into different types of uses. Retailing, for example, is classified into: A1, general retail; A2, financial services; A3, Restaurants and Cafes; A4, Drinking Establishments; and A5, Hot Food and Drink. While consent is required to change from A1 to A2 or A3, for example, no additional consent is required to move from A2 (as long as a ground floor display window exists) or A3 to A1.

Applications follow a formal procedure and usually an indicative timetable. They are submitted to officers of the local authority, the professional employees who negotiate with the applicant, carry out consultation and make reports to the planning committee, made up of elected members of the authority, who make the final decision. Usually this follows the recommendation of the officers, but this is not always the case. As noted, development control powers are vested in the same authority that creates the development plan. Again, this sometimes means a single authority with the full range of powers, sometimes the last tier of separate local authorities.

Development initiator, landowner, economic stewardship of area of responsibility, representative of the aims, wishes and welfare of all members of the local area

These four concerns have been brought together because they are closely related and because they sometimes complement and sometimes contradict the other functions of the local authority.

We have seen that local authorities often have considerable land holdings. They are also highly concerned with the development of their area, its economic well-being, the maintenance of social and environmental balance and urban regeneration. This, today, often leads local authorities to be the promoter and initiator of developments, particularly of large, strategic sites.

This is often a difficult balancing act. Some local authorities act on both sides of the development fence. The modern trend is towards private sector type entrepreneurial behaviour, or partnerships with the private sector to achieve these ends. This can be seen with the development of the partnership urban regeneration companies such as Liverpool Vision. They can find themselves promoting and designing developments that they themselves have to judge via their development control system. To be fair, in the main, this seems to work reasonably well, the authorities balancing their ambitions with their responsibilities to the community, but there are dangers in excessive power and the possibility that private sector developers might be squeezed out.

Whatever the case, the role of the local authority in the development process is pivotal and, with devolution and changing structures of governance, this is likely to be even more true in the future.

Extract from Contemporary Property Development. Second Edition by Tim Havard.

To order a copy of this book, please visit RIBA Bookshops.

Copyright RIBA Publishing February 2008

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