Summary Report: Key Points from the Updated National Planning Policy Framework (NPPF)

Summary Report: Key Points from the Updated National Planning Policy Framework (NPPF)

Overview

The Labour government has released an update to the National Planning Policy Framework (NPPF), introducing several significant changes and new concepts. This report summarises the salient points, with a focus on housing-related policies, the introduction of the 'Grey Belt' concept, and potential conflicts with the proposed Renters' Rights Bill.

Key Changes and New Policies

1. Housing and Build-to-Rent (BTR)The NPPF now explicitly recognises Build to Rent as a distinct housing category (paragraph 70b).BTR is defined as "Purpose-built housing that is typically 100% rented out" and can form part of multi-tenure developments (Annex 2: Glossary).BTR schemes are expected to offer longer tenancy agreements of three years or more. The framework encourages professional management and single ownership of BTR developments. There is no specific mention of Single-Family Rental (SFR) or suburban BTR, suggesting these may be considered under the broader BTR category.
2. Introduction of 'Grey Belt' The 'Grey Belt' concept is a significant new addition to the NPPF (Annex 2: Glossary): Defined as land in the Green Belt comprising previously developed land and/or any other land that does not strongly contribute to Green Belt purposes (a), (b), or (d) in paragraph 143. Excludes land where other policies (footnote 7) would provide strong reasons for refusing development. Development on Grey Belt land may be permitted if it meets specific criteria (paragraph 155).
3. 'Golden Rules' for Green Belt DevelopmentThe NPPF introduces 'Golden Rules' for major housing development on Green Belt land (paragraphs 156-159): Higher affordable housing requirements than non-Green Belt sites. Minimum 50% affordable housing, unless proven unviable.Necessary infrastructure improvements.Provision of new or improved accessible green spaces.
4. Climate Change and Sustainability: Stronger emphasis on planning's role in supporting the transition to net zero by 2050 (paragraph 161). Encouragement of renewable and low carbon energy developments (paragraphs 165-169). Promotion of sustainable transport and reduction of car dependency (paragraphs 109-118).
5. Biodiversity and Natural EnvironmentIntroduction of the concept of Nature Recovery Networks (Annex 2: Glossary).Emphasis on biodiversity net gain in new developments (paragraph 187d).Protection of irreplaceable habitats, including ancient woodland and veteran trees (paragraph 193c).
6. Design and Place-makingGreater emphasis on high-quality design and beauty in new developments (paragraphs 131-141).Encouragement of the use of design codes and guides (paragraphs 133-134).Support for upward extensions and the use of airspace above existing buildings (paragraph 125e).

Cross-referencing NPPF and Renters' Rights Bill on Build to Rent (BTR)

After reviewing the National Planning Policy Framework (NPPF) and the proposed Renters' Rights Bill, potential conflicts have been identified regarding Build to Rent (BTR):

NPPF on Build to Rent

As above, the key points are as follows:

• The NPPF explicitly recognises Build to Rent as a distinct housing category (paragraph 70b).
• BTR is defined as "Purpose-built housing that is typically 100% rented out" and can form part of multi-tenure developments (Annex 2: Glossary).
• BTR schemes are expected to offer longer tenancy agreements of three years or more.
• The framework encourages professional management and single ownership of BTR developments.

Renters' Rights Bill on Assured Tenancies

• The Bill abolishes assured shorthold tenancies and fixed-term tenancies (Clause 2).
• All assured tenancies will become periodic with rent periods not exceeding one month (Clause 1).
• Landlords cannot require tenancies to be for a fixed term (Clause 1).

Potential Conflicts

• Tenancy Length:?While the NPPF encourages longer tenancies of three years or more for BTR, the Renters' Rights Bill mandates periodic tenancies. This could create uncertainty for BTR operators in terms of long-term occupancy and financial planning.
• Fixed Terms:?The NPPF's recognition of BTR as purpose-built rental housing implies a degree of stability, which may be challenged by the Bill's prohibition on fixed-term tenancies.
• Professional Management:?While the NPPF encourages professional management of BTR schemes, the Bill's restrictions on tenancy terms may limit the ability of BTR operators to implement consistent management practices across their portfolios.

These conflicts suggest that the government may need to consider specific provisions or exemptions for the BTR sector within the Renters' Rights Bill to align with the NPPF's support for this housing category.

Interpretation of "Grey Belt"

The concept of "Grey Belt" is introduced in the NPPF as a new category of land within the Green Belt. Based on the information provided, here's a more detailed interpretation of how the government might interpret "Grey Belt":

• Definition:?Grey Belt is defined as land in the Green Belt comprising previously developed land and/or any other land that does not strongly contribute to Green Belt purposes (a), (b), or (d) in paragraph 143 of the NPPF.
• Purpose:?The introduction of the Grey Belt appears to be aimed at allowing more flexible development within the Green Belt, particularly on previously developed or less sensitive sites.
• Development Potential:?The government is likely to view Grey Belt land as having greater potential for sustainable development compared to other Green Belt areas, while still maintaining some level of protection.
• Assessment Criteria:?Local authorities will likely be expected to assess potential Grey Belt sites based on: The extent of the previous development site's contribution to Green Belt purposes and the potential for sustainable development the impact on the openness of the remaining Green Belt
• Planning Process:?The government may introduce specific planning guidance for identifying and allocating Grey Belt land, potentially as part of local plans or strategic land reviews.
• Balancing Act:?The interpretation of Grey Belt will likely involve balancing the need for housing and economic development with the preservation of Green Belt functions.
• Mitigation Measures:?Development on Grey Belt land may be subject to specific mitigation measures or design requirements to minimise impact on the surrounding Green Belt.
• Monitoring and Review:?The government may implement a system to monitor the use of Grey Belt designations and their impact on overall Green Belt objectives.

Overall, the introduction of the Grey Belt suggests a more nuanced approach to Green Belt policy, allowing for targeted development in less sensitive areas while maintaining the broader principles of Green Belt protection. However, the specific implementation and interpretation may evolve as the policy is put into practice and tested through the planning system.

Conclusion

The updated NPPF represents a significant shift in planning policy, with a strong focus on sustainable development, climate change mitigation, and increased housing supply. The recognition of Build to Rent and the introduction of the 'Grey Belt' concept are particularly noteworthy for the housing sector. These changes could potentially lead to increased opportunities for institutional investment in rental housing, including BTR and potentially SFR developments, while also allowing for more strategic development within previously protected Green Belt areas. The potential conflicts with the Renters' Rights Bill, however, highlight the need for careful consideration and potential adjustments to ensure alignment between planning and tenancy legislation.