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Senior housing sector figures have cautiously welcomed Kwasi Kwarteng鈥檚 announcement of a streamlined planning process but called for reform across the whole country and not just in designated 鈥渋nvestment zones鈥�.

As part of his radical growth plan, the chancellor announced this morning the setting up of investment zones with liberalised planning rules and targeted tax cuts to spur development, including new housing. The government is in discussions with 38 mayoral combined authorities and upper-tier councils which have expressed an interest in having a zone in their area.

Paul Smith, managing director of the Strategic Land Group, said there was 鈥漬o doubt the planning system can be streamlined and made more efficient without diluting the important protections it provides鈥�.

But he added: 鈥淭here is no reason, however, why planning applications inside investment zones should be treated any differently to those outside them. We have a growth crisis, and a reformed planning system that focuses on what really matters is needed across the country.鈥�  

According to Smith, the key obstacle to building homes is insufficient land allocated for development.

Nicholas Harris, chief executive of social housing firm Stonewater, said the zones were 鈥渁 step in the right direction鈥� as planning barriers have contributed to the housing crisis.

He added: 鈥淚 would be hopeful and would urge Kwarteng to expand this initiative to the whole country at the earliest opportunity so as to avoid a postcode lottery on personal taxation initiatives, and so we can build more homes for people that need them.鈥�

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Colin Brown, head of planning and development at consultant Carter Jonas, questioned the impact of the measures if they only applied to some designated areas. 鈥淎nother question that this policy raises relates to how much of the activity will be 鈥榙isplacement鈥� of existing economic activity rather than new development,鈥� he said. 鈥淲ill adjoining areas be deprived of investment at the expense of their neighbours and how will they develop as a result?鈥�

Bradley Tully, senior public affairs officer at the Royal Institution of Chartered Surveyors, said the plans were 鈥減ositive鈥� and also welcomed the chancellor鈥檚 pledge to increase the disposal of surplus land for development.

Kwarteng said that the government would also bring forward legislation to speed up the delivery of infrastructure by reducing 鈥渦nnecessary burdens鈥�.

He said the government would 鈥渦npick the complex patchwork of planning restrictions and European Union-derived laws which constrain our growth鈥�.

He added: 鈥淲e will streamline a whole host of assessments, of appraisals, of consultations, endless duplications and regulations.鈥�

The prospect of new legislation has led some to speculate whether the Levelling Up and Regeneration Bill, which is currently going through parliament, will be ditched. Stuart Tym, planning partner at law firm Shoosmiths, said: 鈥淭he confirmation that a bill is set to be brought forward to 鈥榰npick鈥� the wider planning system may signal the end of the Levelling Up and Regeneration Bill and its planning proposals.

鈥淭he Chesham and Amersham by-election result [won last year by the Lib Dems with a swing of 25.2%] may have made that approach to de-regulation unpalatable; which remains the political lens through which further reform must be viewed.鈥�