BLOGS

Introduction

England's elected mayors are set to become significantly more powerful figures in the planning landscape. The Planning and Infrastructure Bill, progressing through Parliament, grants combined authority mayors new strategic planning powers designed to cut through local planning bottlenecks and accelerate housing delivery at scale.

For property investors, developers, and lenders, this represents one of the most significant structural changes to the planning system in decades. The shift towards regional strategic planning could reshape where and how quickly large developments come forward—with direct implications for land values, development timelines, and investment returns.

The Scale of the Opportunity: £224 Billion in Development Value

REalyse analysis of planning data across England's ten mayoral combined authority areas reveals the sheer scale of residential development currently in the pipeline. Focusing on large-scale schemes of 50 or more units, the data shows:

• Over 6,600 major residential planning applications across mayoral regions

• Approximately 1.48 million homes proposed in the development pipeline

• £224 billion in total estimated development value at stake

• More than 850 applications currently pending decisions, representing over 400,000 potential homes

The regional distribution is striking. Greater Manchester leads with nearly 1,000 large-scale applications proposing over 234,000 units, valued at approximately £40 billion. The West Midlands follows closely with over 800 applications and £36 billion in proposed development. Even newer combined authorities like the East Midlands show substantial pipelines exceeding £47 billion in total scheme value.

Yet approval rates for these major schemes remain modest. Across the ten regions, only around 1,300 applications have achieved full approval—roughly 20% of the total pipeline. With hundreds of schemes stuck in planning limbo, the case for streamlined strategic decision-making becomes clear.

How Strategic Planning Powers Will Work

Under the new legislation, elected mayors will gain the ability to create Strategic Development Plans covering their entire combined authority area. These plans will:

• Set binding housing targets that local planning authorities must reflect in their local plans

• Identify strategic development sites where large-scale housing can be directed

• Coordinate infrastructure requirements across multiple local authority boundaries

• Streamline Section 106 negotiations for regionally significant schemes

This represents a fundamental shift from the current system, where each local authority operates its own planning framework. A developer proposing a major scheme spanning two boroughs currently faces parallel negotiations, potentially conflicting policies, and separate infrastructure demands. Strategic planning powers aim to create a single point of coordination.

The West Yorkshire Combined Authority, for instance, spans five local authorities with a pipeline of over 700 large residential applications. Under the new powers, Mayor Tracy Brabin could designate strategic housing zones where planning policy is aligned across Kirklees, Calderdale, Bradford, Wakefield, and Leeds—potentially accelerating schemes that currently stall at administrative boundaries.

Community Infrastructure Levy Reform: Balancing Speed with Local Benefit

Perhaps the most contentious element of the new powers relates to infrastructure funding. The Bill introduces a new Infrastructure Levy to replace the existing Community Infrastructure Levy and most Section 106 obligations. Crucially, mayors will have strategic oversight of how these funds are allocated across their region.

The current system fragments infrastructure funding at local authority level, often resulting in:

• Uneven infrastructure provision between neighbouring areas

• Lengthy negotiations that delay scheme delivery by 12-18 months

• Uncertainty for developers about final contribution requirements

REalyse data shows that schemes in mayoral areas currently take an average of 2-3 years from application to determination for large-scale residential developments. The regions with the highest pending application counts—East Midlands with 289 pending, West Yorkshire with 103, and Greater Manchester with 99—stand to benefit most from streamlined processes.

However, concerns remain about local accountability. Critics argue that strategic planning powers could override community preferences, particularly in areas resistant to large-scale development. The Bill includes safeguards requiring mayors to consult local authorities, but final decision-making authority on strategic sites will rest with the combined authority.

Regional Disparities and Investment Implications

The data reveals significant disparities between combined authority areas that investors should note:

High-volume, high-approval regions like Greater Manchester and the West Midlands combine large pipelines with relatively strong approval rates. These areas may see the fastest acceleration under new powers, as existing institutional capacity can absorb streamlined processes.

Emerging regions like Tees Valley and the North East have smaller pipelines but proportionally more pending applications. Here, strategic planning powers could prove transformative—unlocking schemes that currently lack the local planning resource to progress.

High-value markets like Cambridgeshire and Peterborough show strong per-unit values but higher refusal rates. The mayor's ability to override local resistance on strategic sites could prove particularly significant in areas where NIMBYism has historically constrained supply.

For investors and lenders, the key question is timing. Strategic Development Plans will take 18-24 months to prepare and adopt. Early movers who identify strategic sites before plan adoption may secure significant land value uplifts.

Conclusion: A New Era for Strategic Housing Delivery

The transfer of strategic planning powers to elected mayors represents the most significant decentralisation of planning authority since the abolition of regional spatial strategies in 2010. For property professionals, this creates both opportunities and new considerations.

Developers should monitor emerging Strategic Development Plans to identify sites likely to receive favourable policy treatment. Investors should consider the acceleration potential of existing consented schemes in mayoral areas. Lenders may need to factor in both reduced planning risk and potential infrastructure levy changes when assessing development finance.

REalyse will continue tracking planning application flows across combined authority areas, providing data-driven insights as this new planning landscape takes shape. With over £224 billion in residential development value at stake across England's mayoral regions, the stakes for getting this transition right could not be higher.