25.05.2025

Consultation on LURA measures to speed up build-out rates opens.

Today is my first wedding anniversary. The traditional gift is paper, so the fact that MHCLG has chosen today to launch the “Implementing measures to improve Build Out transparency: Technical consultation” is somewhat fitting.

The consultation, which relates to plans to implement the build-out-rate related provisions in LURA, foreshadowed last week, runs from today (25 May 2025) to 7 July 2025.

This includes the power to decline to determine applications on the grounds of slow build out rates.

This is one that you will want to respond to.

The consultation is accompanied by:

A working paper, which can be accessed here; and
A press release.

But it is my wedding anniversary, and we have plans, so this blog only looks at the consultation in detail. There is a short section on the working paper at the end, but it is very high level.

So let's get to it.

More Paperwork

The first thing established by the consultation is that we will all have more paperwork to deal with, in the form of a new reporting process. This is summarised in the following diagram

These steps were introduced in LURA, but the statutory provisions have yet to be brought into force.

Developments to which it will apply

MHCLG proposes defining “eligible residential development” - i.e. those schemes which will have to comply with the new reporting regime, as follows:

Any development (including mixed use schemes and possibly specialist accommodation) for new build residential units or dwellings;
Which proposes to build 50 or more new build dwellings.

Views are sought on whether a higher threshold should be applied for submitting development progress reports and for triggering the power to decline to determine applications on the grounds of slow build out rates (more on this below).

Build-Out Statements

The consultation then turns to what should be in each type of new report - starting with build-out statements.

It is proposed that build-out statements should include:

the name and contact details of the person(s) intending to carry out the development that are known at the time of the planning application
the build out projection for the site, including a trajectory for when housing development is expected to be started and completed by year and who is responsible
the rationale for this projection including any site-specific constraints (such as infrastructure delivery) that may affect it
information on the proposed housing tenure mix – including the expected proportion of market sales, affordable housing and other tenures such as Build to Rent
a breakdown of how diversification and tenure mix support the build out trajectory and maximise absorption rates where appropriate
any risks or issues known at the time of the planning application, that may influence the build out of the development, such as uncertainty about delivery of infrastructure on a site

The intention is that build-out statements be submitted as part of each planning application and form part of the validation requirements.

They would be required for both full and outline applications and s.73 applications submitted before development on the site has started.

The submission of build-out statements would be supported by the use of conditions, with:

guidance recommending that a condition be placed on the permission requiring any changes to the projection set out in the build out statement to be submitted and approved with the LPA prior to the commencement of the development; and
a statutory condition being placed on eligible residential development to submit a development progress report annually.

Commencement Notices

The consultation also builds on the LURA provisions that will implement commencement notices for prescribed types of development.

It proposes that commencement notices should contain:

the details of the planning permission which authorises the development which is about to be commenced, including the planning application reference number
the intended commencement date for the development
the date on which the development is expected to be substantially completed
the expected date for the first application for reserved matter approval (if the development is authorised by an outline planning permission)
the name and contact details of the person sending the notice
the name and contact details of the person(s) carrying out the development
the name and contact details of the owner(s) of the land
a signed declaration confirming the contents of the notice and liability for any work or non-work taking place on the site
details on whether the permission is an alternative or variation to a previously granted permission through Section 73

Progress Reports

There are a couple of options in the consultation for progress reports and when they should be submitted.

Option 1.

prescribe an annual reporting period based on the financial year – that is to say, regulations would state the reporting period would start on 1 April and finish on 31 March; and
require the submission for the development progress reports for this reporting period within 2 months of the end of this reporting period (31 May)

Option 2.

prescribe an annual reporting period based on the calendar year – that is to say, regulations would state the reporting period would start on 1 January and finish on 31 December; and
require the submission for the development progress reports for this reporting period within two months of the end of this reporting period (last day in the month of February)

In either case, reports would need to be submitted annually from commencement until a final completion certificate for the dwellings on site had been applied for.

It proposed that progress reports would contain the following information:

relevant information in relation to the planning application eg. application number the development relates to
a description of development that has taken place on site during the reporting period
the number of dwellings started and completed by the development in the previous year
the reasons for any delays against previous trajectories set out in the build out statement and any previous development progress reports
the number of dwellings due to start in the year ahead
the proposed trajectory for the build out for the rest of the development
the tenure breakdown including the number of affordable units delivered and to be delivered
details on any changes in housing tenure during the build out in the last year
identify any potential risks to the delivery targets, for example infrastructure delivery and strategies to overcome them

The consultation recognises that the reporting regime will be significantly more complicated where a site is being built-out by more than one developer. It seeks views on how to deal with this, but doesn't set out a huge amount of detail on how this is intended to work in practice - although there is discussion over the ability for developers to submit joint progress reports if so inclined, with a default of individual reports being submitted by each developer

Clearly this has the potential to generate a LOT of additional paperwork.

Power to decline to determine applications

And finally, the most controversial aspect of the consultation: the power to decline to determine applications on the grounds of slow build-out rates.

The consultation contains a handy summary of these provisions in LURA, which I have reproduced below:

"What is in the LURA provisions

62. Section 113 of the LURA makes provision for a new section 70D in the TCPA 1990 which sets out a new power for LPAs to decline to determine applications for planning permission where the carrying out of development authorised by an earlier planning permission anywhere in that LPA’s area has not taken place at a satisfactory pace. In summary:

LPAs will be able to use the new power to decline to determine an application for planning permission for a development of any land if:
- The development is development that meets certain criteria set out in regulations which this consultation seeks views on.
- The application is made by a person who has previously made an application for planning permission for development in the LPA’s area at the time the current application is made – known as the ‘earlier application’, or a person who has a connection of a description set out in this consultation document with the development to which the earlier application related known as the ‘earlier development’.
- The earlier development was of a description that meets the same criteria as set out in point one above.
- If the earlier development has not begun or if the earlier development has begun but has not been substantially completed and the LPA is of the opinion that the carrying out of the earlier development has been unreasonably slow.
When considering whether the earlier development has been unreasonably slow, the LPA must have regard to all the circumstances including:
- Where a commencement notice has been given, whether the development was begun by the date specified in the notice and was carried out in accordance with any timescales specified in it.
- Any other prescribed circumstances (which this consultation sets out proposals for).
Where a person applies for planning permission a LPA may by notice require the person to provide information for the purposes of its function in determining whether the power to decline to determine the application should apply.
If a person does not comply with this notice within 21 days the LPA may decline to determine the application. If a person gives a statement responding to the notice which they know to be false or misleading then they may be subject to a fine."

It then discusses how it proposes that this power be implemented.

Who the power will apply to:

The consultation proposes that this power will apply to applications from:

The person who submitted the earlier application
A person who carried out the development but who did not submit the planning application, i.e. a developer who purchased a consented site; and
corporate entities within a development group. This could means that if one company within the group committed the ‘offensive behaviour’ the other group companies could be penalised.

Information used to decide if build-rates are unreasonably slow

The consultation proposes that LPAs should take the following information into account when assessing the reasonableness of build-out rates:

whether the development was begun by the date specified in the commencement notice and was carried out in accordance with any timescales specified in it.
any information contained in build-out statements and development progress reports submitted in relation to the development

Guidance on what "unreasonably slow" means

Despite acknowledging that:

“Factors such as reasons for delays to build out, location of development, size of development and the progress of delivery of other infrastructure provisions on the site could all be relevant to considering whether the build out of a site is being undertaken at a reasonable rate”

MHCLG does not propose to set out prescriptive guidance on what ‘unreasonably slow’ build-out rates actually mean.

They are however seeking views on the role that guidance could have in ‘encouraging common approaches’ between LPAs.

Timings, next steps and transitional provisions

The timings proposed for this suggest that MHCLG is not intending to hang around:

The consultation closes on 7 July 2025
Subject to the outcome of the consultation, the intention is to bring forward the regulations to implement the build out measures as soon as practicably possible
It is hoped that the new build out reporting framework will apply from 2026; and
The data standards and forms for the reporting framework will be set my MHCLG. All forms will be submitted online and published on the planning register as part of MHCLG's “digital planning” initiative

Crucially, The build out reporting framework will not apply to existing development which has already commenced.

Headlines from the Working Paper

It is clear from the accompanying working paper that implementing these parts of LURA are only the start of plans to increase build-out rates on development sites.

The Working Paper also promises:

to implement reforms to the operation of completion notices introduced under section 112 of the LURA. Completion notices require developers to complete their development within a certain period of time if the LPA considers it will not be completed in a reasonable time, otherwise the planning permission will cease – a form of “use it or lose it”. The reforms will replace the need for the Secretary of State’s consent for a notice with an appeals mechanism.
To bring forward additional policies to support mixed tenure development, including a site size threshold above which sites must deliver on a mixed tenure basis. This threshold could be anywhere between 500 and 1,500 dwellings.
To implement a reform introduced by the Levelling-up and Regeneration Act 2023 to allow the conditional confirmation of CPOs. The conditional confirmation of CPOs could be used to ensure landowners progress their alternative proposals within certain timescales, which would be made clear when an individual CPO is conditionally confirmed. Where they fail to do so, CPO powers could then be switched on. Secondary legislation for this is promised by the end of the year.
To explore proposals for a Delayed Homes Penalty, which would allow LPAs in very specific circumstances to charge developers for homes which are delivered very significantly behind schedule without sufficient justification. This would not be implemented without further detailed consultation

Conclusion

MHCLG's mission to increase build-out rates is, in itself, a multi-phased project.

Phase 1: Implement the LURA provisions on build-out rate reporting and the power not to determine.

Phase 2: Consult on and implement the further measures in the working paper - including the provisions around CPO reform, completion notices and the delayed homes penalty.

Some of the provisions will be complicated to make work in practice - establishing what group companies or SPVs have built out a scheme is unlikely to be straightforward, and large sites involving multiple developers will be…. Interesting.

In any event, it is clear that the regime will require additional time, effort and resourcing from LPAs and developers alike.

Quite how burdensome it turns out to be for LPAs, may well depend on both the outcome of the upcoming spending review (which is rumoured to be a tricky one for day-to-day spending), and how quickly the PIB provisions on locally set planning fees take to come into force.

There is also the challenge of implementing a new reporting regime alongside wide-ranging local government reform to take into account. After all, the government is hoping to have progress reports etc. up and running in 2026.

Let's all keep our fingers crossed for a smooth implementation period. The last thing anyone needs is another bottle neck in the development process….

We should remember that this is the just the first of a series of technical consultations we have been promised in relation to the outstanding sections of LURA.

There is still a consultation on NDMPs and the implementation of s.73B to come, to name just two…..let alone any detailed proposals on the Delayed Homes Penalty.

We are not going to be able to ignore any of them. All of the outstanding consultations are important, including this one, so better sharpen your pencils, it looks as if we are headed for a hot consultation summer…..

This technical consultation sets out the rationale for implementing the new statutory build out information requirements and the power to decline to determine applications, including setting out the importance of build out and the government’s plan to improve build out transparency. It then goes into details of how the provisions are proposed to be applied, seeking specific views on:”