BLOGS

The most significant restructuring of planning governance in England since the abolition of regional spatial strategies in 2010 is now underway. The English Devolution and Community Empowerment Bill, introduced in July 2025, extends London-style planning powers to elected mayors across the country, creating a new tier of "strategic authorities" designed to coordinate development across local authority boundaries.

For investors, developers, and lenders tracking the UK residential market, this represents a fundamental shift in how large-scale projects will be approved, funded, and delivered outside the capital.

What the bill actually changes

Under the legislation, mayors of strategic authorities will gain access to four key planning levers:

Spatial Development Strategies (SDS): Strategic authorities must publish development strategies setting out a regional vision for housing, infrastructure, and growth. Local plans will need to conform to these overarching strategies—a significant departure from the fragmented, authority-by-authority approach that has characterised English planning since 2010.

Mayoral Development Orders (MDOs): Perhaps the most consequential power, MDOs allow mayors to grant upfront planning permission for housing and infrastructure projects without requiring consent from local planning authorities. Where a local authority objects, the Secretary of State can approve the order instead.

Mayoral Community Infrastructure Levy (CIL): Currently exclusive to London, the power to charge developers a mayoral CIL will extend to all mayoral strategic authorities with an SDS in place. This creates a new funding stream for regional infrastructure but will require coordination with existing local CIL charging schedules.

Call-in powers: Mayors will be able to intervene in planning applications of strategic importance, potentially overturning local authority decisions on major schemes.

The companion Planning and Infrastructure Bill, which received Royal Assent in December 2025, further expands the remit of Mayoral Development Corporations to include greenfield development—not just urban regeneration.

The scale of change ahead

The government's devolution roadmap is ambitious. By May 2026, elections will be held for four new strategic authorities: Hampshire and the Solent, Norfolk and Suffolk, Brighton and Sussex, and Greater Essex. Combined with the six additional areas in the Devolution Priority Programme, the proportion of England covered by mayoral devolution is set to reach approximately 77%—over 44 million people.

This creates a three-tier system of strategic authorities:

• Foundation strategic authorities: Non-mayoral, with limited devolved powers

• Mayoral strategic authorities: Access to SDS, MDO, and call-in powers

• Established mayoral strategic authorities: Broadest powers, including the right to request additional devolution

The intention is clear: shift strategic planning decisions from individual districts to regional bodies capable of coordinating housing supply, transport infrastructure, and economic growth across functional economic areas.

REalyse data on planning applications shows that cross-boundary coordination has historically been a friction point for large residential schemes, particularly in areas where housing need calculations vary significantly between neighbouring authorities. The new framework could, in theory, smooth the path for schemes that currently require negotiation across multiple planning committees.

Implementation challenges loom large

The policy ambition is substantial. Delivery is another matter.

The Royal Town Planning Institute (RTPI) has flagged that 150 to 200 additional planners will likely be needed to deliver Spatial Development Strategies effectively. Planning authorities are already under-resourced, with recruitment and retention challenges widespread across the sector.

There are also legitimate questions about local accountability. While the bill moves to simple majority voting for strategic decisions (eliminating the unanimous consent requirements that have stalled some combined authority strategies), critics argue that power is flowing upward to mayors and centrally to the Secretary of State—not downward to communities.

The practical mechanics remain uncertain. Secondary legislation will determine the detailed operation of mayoral call-in powers, MDO processes, and CIL charging coordination. The government has indicated regulations on planning committee composition will follow in early 2026, with updated National Planning Policy Framework guidance expected by summer 2026.

For residential developers, the transition period creates both opportunity and risk. Established mayoral areas like Greater Manchester and the West Midlands will have more mature governance structures; newly formed strategic authorities may face teething problems as they build capacity and institutional knowledge.

What this means for the market

For institutional investors and developers, the bill signals a more interventionist approach to housing delivery at the regional level. Mayors with electoral mandates and streamlined powers may prove more willing to approve contentious schemes—particularly in areas with acute housing shortages—than fragmented local authorities.

REalyse analysis of planning pipeline data suggests that strategic sites crossing local authority boundaries have historically faced longer determination periods and higher refusal rates than single-authority schemes. If the new powers are used effectively, this could change.

However, the extension of Mayoral CIL creates a new cost layer for development. While intended to fund supporting infrastructure, developers will need to factor mayoral levies into viability assessments alongside existing local charges.

The expansion of Mayoral Development Corporations to greenfield sites is particularly significant for new settlements and large-scale housing delivery. The government's New Towns Taskforce has already recommended a string of major new settlements; mayoral authorities may now have the delivery vehicles to implement them.

Outlook

The English Devolution and Community Empowerment Bill represents a genuine reconfiguration of planning power in England. Whether it accelerates housing delivery will depend on factors the legislation cannot control: planning capacity, political will, and the willingness of mayors to use their new powers proactively.

For market participants, the key dates to watch are the May 2026 mayoral elections and the subsequent publication of Spatial Development Strategies. These documents will provide the clearest signal yet of regional development priorities—and the schemes most likely to benefit from mayoral backing.