BLOGS

A new era for mayoral planning powers

The government's proposed planning reforms mark a significant shift in how large-scale residential developments could be delivered across England's major city-regions. Under the emerging legislative framework, elected mayors of Combined Authorities would gain new strategic planning powers, enabling them to take a more direct role in approving major housing schemes and coordinating infrastructure investment.

For property investors, developers, and lenders, understanding these changes is essential. The reforms aim to address a persistent bottleneck in UK housing delivery: the lengthy and fragmented approval process for schemes of strategic importance. REalyse data shows that large-scale residential schemes (100+ units) currently take an average of 10-12 months from submission to decision—a timeframe the government hopes to reduce significantly through mayoral intervention.

Current pipeline pressures: why reform matters

Analysis of the residential planning pipeline reveals substantial development activity concentrated in Combined Authority regions. Across major metro areas, REalyse tracks over 1.8 million residential units in active planning—yet approval rates for large schemes have shown concerning trends.

In 2023, large-scale residential schemes achieved a 66% approval rate with an average decision time of 358 days. By 2024, approval rates dropped to 54% despite decision times improving to around 301 days. This tension between speed and outcomes highlights why the government sees mayoral coordination as a potential solution.

The Build-to-Rent sector illustrates the scale of institutional investment awaiting delivery. REalyse data shows approximately 489,000 BTR units in the pipeline across the UK, with London alone accounting for over 177,000 units across 289 schemes—representing an estimated £64 billion in development value. The North West and West Midlands follow with substantial BTR pipelines, suggesting mayors in these regions will have significant opportunities to shape institutional housing delivery.

How the new powers work

The proposed framework would grant mayors several key capabilities:

Strategic scheme designation: Mayors could identify developments of strategic importance—typically those exceeding 150 units or meeting specific criteria around affordable housing, employment, or regeneration—and assume a coordinating role in the planning process.

Infrastructure levy coordination: Perhaps most significantly, mayors would gain greater influence over Community Infrastructure Levy (CIL) and Section 106 contributions from major schemes within their areas. This could enable more strategic deployment of infrastructure funding across Combined Authority boundaries, addressing a long-standing criticism that local authority-level collection fragments investment.

Accelerated determination pathways: For designated schemes, mayors could establish streamlined processes that reduce determination timelines while maintaining local consultation requirements. Early estimates suggest this could reduce approval times for qualifying schemes by 20-30%.

Regional implications and investor considerations

The impact will vary significantly by region. London, with its established Greater London Authority planning functions, already operates a version of strategic oversight. The reforms may prove most transformative in areas like Greater Manchester, the West Midlands, and emerging Combined Authorities in Yorkshire and the East Midlands.

REalyse analysis of regional pipelines shows that average scheme sizes vary considerably—from 200 units in Wales and Scotland to over 620 units in London. This suggests different regions will see different types of schemes qualifying for mayoral fast-tracking. In the North West and Midlands, where average BTR scheme sizes sit between 350-450 units, a substantial proportion of the institutional pipeline could benefit from the new processes.

For developers and investors, several practical considerations emerge:

• Early engagement with mayoral offices becomes strategically important for schemes likely to meet strategic designation thresholds

• Infrastructure contributions may need to be modelled differently, with potential for larger but more coordinated payments

• Scheme design that aligns with mayoral priorities—such as net zero targets, affordable housing ratios, or employment creation—may benefit from faster determination

Challenges and concerns

The reforms are not without criticism. Local authorities express concern about loss of planning fee income and reduced influence over major schemes in their areas. Community groups worry that fast-tracking could diminish local consultation, particularly on schemes with significant transport or infrastructure implications.

The infrastructure levy coordination raises technical questions about existing CIL charging schedules and how funds collected from strategic schemes would flow back to local authorities for neighbourhood-level infrastructure. These implementation details will likely be worked through in secondary legislation and mayoral agreements with constituent councils.

There are also questions about capacity. Mayoral Combined Authorities will need to build planning teams capable of handling complex major applications—a challenge given well-documented skills shortages in local authority planning departments.

Outlook: a turning point for strategic housing delivery?

The devolution of planning powers to mayors represents a significant experiment in UK housing delivery. If successful, it could provide a template for accelerating the strategic schemes that contribute most substantially to housing targets—the 100+ unit developments that REalyse data shows have been taking nearly a year to navigate the planning system.

For property professionals, the reforms underscore the importance of understanding both national policy direction and regional mayoral priorities. Combined Authority areas may increasingly diverge in their approach to housing types, tenure mix, and infrastructure requirements—making granular, location-specific market intelligence essential for investment and development decisions.

The coming months will be critical as the legislation progresses through Parliament and mayors begin preparing for their expanded roles. Those positioned with detailed understanding of regional pipelines, local market dynamics, and emerging mayoral priorities will be best placed to capitalise on what could be a new chapter in UK housing delivery.