BLOGS

The planning system in England is undergoing its most significant transformation in over a decade. The English Devolution and Community Empowerment Act—which received Royal Assent in late 2025—extends strategic planning powers previously exclusive to the Mayor of London to elected mayors across the country. For developers, investors and lenders operating in the UK residential market, this shift fundamentally changes the rules of engagement for major schemes.

What the new powers actually deliver

The legislation grants mayors of strategic authorities access to four key planning levers that could reshape how large developments move through the system.

Spatial Development Strategies (SDS) require strategic authorities to publish regional visions for housing, infrastructure and growth. Crucially, local plans must now conform to these overarching strategies—a marked departure from the fragmented, authority-by-authority approach that has defined English planning since 2010.

Mayoral Development Orders (MDOs) represent perhaps the most consequential change. These 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—creating a clear escalation path for schemes deemed strategically important.

Mayoral Community Infrastructure Levy (CIL) powers, previously exclusive to London, will extend to all mayoral strategic authorities with an SDS in place. This creates new funding streams for regional infrastructure while requiring coordination with existing local CIL charging schedules.

Call-in powers enable mayors to intervene in planning applications of strategic importance, potentially overturning local authority decisions on major schemes.

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—including Cumbria, Cheshire and Warrington—the proportion of England covered by mayoral devolution is set to reach approximately 77%, encompassing over 44 million people.

The legislation establishes 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

For West Midlands Mayor Richard Parker, the implications are clear: "With the right powers, we can build the homes we need, fix our infrastructure, and create better opportunities for local people."

What this means for major developments

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

For build-to-rent investors and large-scale housebuilders, the changes create both opportunities and considerations:

Faster approval pathways: MDOs offer a mechanism for strategic schemes to bypass fragmented local opposition, particularly for sites that span authority boundaries or serve regional housing need.

Greater certainty on infrastructure: Regional CIL coordination should reduce the risk of schemes being held up by inadequate infrastructure planning or competing local priorities.

New stakeholder dynamics: Engaging with mayoral combined authorities will become as important as traditional local authority relationships. Schemes that align with regional spatial strategies will likely benefit from smoother planning journeys.

Potential for intervention: Call-in powers work both ways. While mayors can rescue stalled strategic schemes, they could equally intervene to refuse applications that conflict with regional priorities.

Existing mayoral areas like Greater Manchester, the West Midlands and Liverpool City Region have already demonstrated what coordinated regional planning can achieve. Greater Manchester Mayor Andy Burnham recently announced a £1 billion Good Growth Fund designed to kick-start development projects across the city-region, while West Midlands Mayor Richard Parker has launched a £40 million Social Housing Accelerator Fund to fast-track delivery of 1,000 new social homes.

Local authorities: partners or bystanders?

The legislation is careful to position strategic authorities as complementary to, rather than replacements for, local councils. District and borough councils retain responsibility for most planning applications and continue to deliver key public services.

However, the requirement for local plans to conform to spatial development strategies represents a meaningful constraint on local autonomy. Combined with the mandatory training requirements for planning committee members and new national delegation schemes that determine which applications go to committee, the reforms suggest a clear direction of travel: strategic decisions will increasingly be made at regional level.

Councillor Tim Oliver, Chairman of the County Councils Network, has noted that while devolution is welcome, "it is imperative that new strategic authorities in county areas have parity in the powers and funding available to urban areas."

The Chartered Institute for Housing has broadly welcomed the reforms, noting that "mayors and strategic authorities across England can play a major role in the planning and development of high-quality new communities." However, they emphasise that success depends on integration with local housing strategies and homelessness prevention plans.

The viability question

For developers and investors assessing scheme viability, the new framework introduces both opportunities and uncertainties.

On the positive side, regional coordination should reduce planning risk for strategic sites. The ability to secure upfront permission through MDOs could significantly de-risk land acquisition for major schemes, particularly in growth corridors where multiple authorities have historically taken different positions on housing need and design requirements.

The extension of mayoral CIL creates potential for infrastructure investment that supports land values, though developers will need to factor in an additional layer of contributions alongside existing local CIL and Section 106 requirements.

REalyse analysis of planning pipeline data suggests that areas with established mayoral combined authorities have generally seen stronger performance on large-scale scheme approvals, though local factors vary significantly. Investors should monitor how newly created strategic authorities approach their spatial development strategies—early engagement with emerging regional priorities could prove advantageous.

Outlook: a new planning geography

The devolution of strategic planning powers marks a fundamental shift in how the UK approaches large-scale residential development. For the first time since 2010, there will be a statutory framework for regional coordination on housing, infrastructure and growth outside London.

The government's target of 1.5 million new homes over this Parliament depends heavily on these reforms delivering faster, more consistent approvals for major schemes. Early signs from established mayoral areas suggest the model can work—but extending it to over three-quarters of England's population represents an ambitious undertaking.

For investors, developers and lenders, the message is clear: understanding the evolving geography of planning power is now essential. The days of engaging solely with district planning committees on strategic schemes are drawing to a close. Those who adapt their stakeholder engagement and site selection strategies to this new reality will be best positioned to benefit.