Want to fix the broken planning system? Do more to engage

One of the more acrimonious debates raging at the moment revolves around the planning system.

“It is effectively broken, there are not enough planning officers, everything takes for ever, that pre-app was a waste of time,” is the common refrain. In a country going through tough economic times, this is just what we do not want to hear. I have been in this business a long time and I can tell you this is remarkably familiar to what I was hearing in the 70s, so not that much has changed.

Some councils are known to be difficult, and some developers take the decision to avoid their area of authority, as the costs and risks involved are just not worth it. I have learned that to achieve a satisfactory planning consent where a council might be difficult or where locals have considerable influence, one has to engage not only with planning officers but also with council members, local dignitaries, special interest groups and the community at large.

In 2013, when I was CEO of Palace Capital, we acquired a portfolio of 24 properties from Quintain, one of which was Hudson House in Toft Green, York, a 100,000 sq ft former British Rail office building situated on a two-acre site close to York Station.  It was 80% empty, so what were we going to do with an outgoing of £600,000 per annum for empty rates and service charge shortfall? We mitigated this with short-term lettings.

York is an historic city and our site was in a conservation area, so we had to tread very carefully. I decided we needed to get not only the council onside but the residents as well. Then I remembered what a client told me in the early 1980s, when I was trying to acquire a Camden Council-owned site adjoining Swiss Cottage Station in London for a major office development. We were in competition, so he said: “When in Rome, do as the Romans do.”

He took the view that we should appoint an architect based in Camden. It might sound parochial, but it works. We appointed Ted Levy, an architect based in Hampstead, Camden, who was predominantly into residential and not one of the well-known names. The council, however, knew him well, loved his scheme and 100 Avenue Road went on to become a highly successful office development, with rents achieved well in excess of expectations. It was a master stroke.

So, with Hudson House, York, after I consulted with my property director, we decided to appoint a professional team based in Yorkshire, comprised of experts from Fuse Studios, Turner & Townsend, Lichfields, Roscoe and CPW. Only one of the entire team, Peter Vince of Emmaus Consulting, was not based in Yorkshire but in Birmingham. This was all right as he was an Aston Villa supporter!

I met the CEO of City of York Council at MIPIM not long after we acquired the property and we agreed that we would work together. We secured permitted development relatively quickly to convert the building to residential, but we were not that keen on the scheme, as it was a compromise.

Ideally, we wanted to demolish the existing building and erect a new scheme to comprise three blocks of residential and one block of offices. This was not going to be easy, so we appointed a York-based public affairs consultant, Ben Pilgrim. He must have known everybody in York. 

During the planning process, I was going to York every other week meeting members, officers, retailers and local residents. We held an exhibition one afternoon in York that more than 300 people attended. We also met the Civic Trust. A member asked how he could be sure, if we secured approval, that we would not sell the site and go back to London. I told him that if there was no material downturn, we would build it. That advanced our credibility. In addition, we supported local charities, a commitment that would be ongoing. In time, we were not looked upon as a London-based developer but one of them.

We secured unanimous planning approval for 127 apartments, 35,000 sq ft of offices plus car parking in August 2017. In my view, the council was pragmatic and supportive throughout. We went ahead with the scheme and as per our policy we were fortunate to appoint Caddick Construction from Knottingley, West Yorkshire, which submitted the lowest tender. They were terrific and work continued during Covid. It was completed in 2021 and 109 apartments have now been sold, with one under offer, while 85% of the offices are let.

Worryingly, this sort of engagement could be for nothing if the decision by Michael Gove on the Marks & Spencer building (pictured) at Marble Arch sets a precedent. Approved by Westminster Council and the Mayor of London and recommended by the Planning Inspectorate, he turned their planning application down as he feels the building can be retrofitted. To me, he is playing to the gallery.

My fear is that this decision will have far-reaching negative consequences in terms of the growth of the economy. I am one hundred per cent for limiting carbon emissions, but not like this. This will only be to the ultimate detriment of the low-income families in our society who need a strong and vibrant economy. The perception is that this government is just not pro-business, and this will not help the planning process either, as potential schemes will stall. We need to boost the construction sector and promote all the benefits that this will entail for our economy. Otherwise, we will continue to effectively have one hand tied behind our backs while China builds coal fired power stations and airports…