Planning for the Future - How Flexible Zoning Will End the Housing Crisis

The document Planning for the Future by Anthony Breach, published by Centre for Cities, provides a comprehensive analysis of the UK housing crisis and proposes flexible zoning as a solution to address the inefficiencies of the current planning system. Below is a detailed summary of its key points:

The Housing Crisis in the UK

The UK has faced a housing crisis for decades, particularly in expensive cities and large towns. Despite recent improvements in housing supply, the crisis continues to harm the national economy, deepen inequality, and restrict local prosperity. The root cause lies in the discretionary planning system, which rations land for development inefficiently and unpredictably. This system limits housing supply, inflates prices, and fuels speculation in the housing market15.

Problems with the Current Planning System

The discretionary planning system, established in the 1940s, is inherently inefficient:

• Land Rationing: It restricts land availability for development, creating shortages that cascade through the housing supply chain.

• Unpredictability: Developers face uncertainty due to case-by-case decision-making by planning officers or committees.

• Inefficient Land Use: Developed land is often wasted or underutilized.

• Housing Shortages: This system forces people to live in less desirable locations while driving inflation in house prices and rents15.

These issues are structural rather than caused by poor planning or bad behavior by developers. The document compares these shortages to those seen in former Eastern Bloc economies with centralized planning systems5.

Proposed Solution: Flexible Zoning

Flexible zoning is presented as a transformative alternative to discretionary planning. This approach minimizes discretionary elements and reconnects the housing supply with demand. Key features include:

Core Principles

1. National Zoning Code: Central and devolved governments would create a simplified zoning framework with minimal zones, allowing flexible land use while maintaining orderly growth.

2. Automatic Permissions: Proposals complying with zoning codes and building regulations must be legally granted permission, reducing delays and uncertainties.

3. Public Consultation: Public input would occur during local plan creation rather than on individual developments, streamlining decision-making15.

Benefits

• Efficient Land Use: Flexible zoning allows the redevelopment of underused areas while protecting woodlands and wildlife habitats.

• Increased Housing Supply: By connecting development more closely to land values and demand, this system ensures sufficient housing in high-demand areas.

• Support for Small Builders: Smaller redevelopment projects within built-up areas become viable under flexible zoning.

Additional Recommendations

The report outlines complementary reforms to enhance flexible zoning:

1. Replace Section 106 Agreements: Abolish negotiated developer contributions and implement a flat 20% levy on development value to fund infrastructure and social housing.

2. Phased Development of Non-Urban Land: Gradually incorporate non-developed land into zoned areas based on population growth while preserving nature reserves.

3. Economic Cost-Benefit Analysis: Apply this analysis to special designations like conservation areas or opportunity zones before approval15.

International Comparisons

Flexible zoning systems have been successfully implemented in other countries:

• Japan: With highly flexible zoning codes, Japan achieves around 950,000 housing starts annually—far exceeding England’s figures despite population differences. Cities like Tokyo efficiently add new dwellings even amid population decline5.

• United States: While some U.S. cities face housing crises despite having zoning systems (e.g., New York City), these crises stem from restrictive zoning codes that limit density or specify single uses for zones5.

Case Studies

Flexible zoning has proven effective in mitigating housing shortages:

• In cities like Minneapolis and Portland (USA), reforms allowing more housing have curtailed rent growth and saved tenants thousands annually3.

• Rezoning underused land (e.g., industrial areas repurposed for mixed-use developments) has boosted affordable housing availability in cities like Washington D.C.4.

Strategic Role of Planners

Under flexible zoning, planners retain a strategic role:

• Overseeing urban growth at neighborhood and community levels.

• Ensuring orderly development while reducing control over specific details of individual projects25.

Impact on Climate and Affordability

Flexible zoning contributes positively to environmental sustainability:

• Energy efficiency improves as older stock is replaced with modern homes.

• Efficient land use reduces urban sprawl while preserving natural habitats.

Additionally, higher revenues from land development charges in expensive areas can fund social housing and infrastructure, addressing affordability concerns25.

Challenges of Implementation

Transitioning from discretionary planning to flexible zoning requires overcoming political resistance and institutional inertia. Comprehensive reform is necessary; piecemeal changes (e.g., allowing accessory dwelling units or reducing parking minimums) are insufficient to resolve the crisis fully.

Conclusion

The document argues that minimizing discretion in planning decisions is essential to ending the UK’s housing crisis. Flexible zoning offers a proven framework for efficiently increasing the housing supply while addressing affordability issues. By adopting this approach, England can emulate successful models from other countries and ensure sustainable urban growth.