Legal News
Government Reforms May Drive Down House Prices (3 October 2011)
Date: 03/10/2011
Council officials have warned that new Government plans to build new housing developments will reduce house prices. The Planning Officers' Society has reportedly asked for the policy paper to be reviewed. The plans have also attracted criticism from both the Campaign to Protect Rural England and the National Trust. Mike Holmes, the president of the POS, has claimed that the current framework would have “detrimental effects” on property prices. Mr. Holmes said that large splurges in development in an area would reduce the prices of the properties already present. Ministers have voiced their hopes that the planning policy framework will result in more houses being built. Grant Shapps, the Government’s housing minister, claimed that the Coalition desires “house price stability”.
The POS formal submission claims that the Government's plans would render it increasingly difficult for small business expansion, as land set aside for business expansion will be used to build new properties. Current legislation enables councils to designate specific areas of land as “employment land”. This means that it is reserved for business use as opposed to residential development. Critics of the plans believe that the new framework may have the potential to affect large business. Mr. Holmes claims that under the current framework, Jaguar would have been unable to expand their business in the West Midlands. The Coalition has defended their planning policy framework, claiming that it has the potential to stimulate economic growth.
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