Lee Murphy: Ministerial planning statement must deliver concrete step-change for real estate sector

Lee Murphy: Ministerial planning statement must deliver concrete step-change for real estate sector

Lee Murphy

Very few in Scotland’s real estate sector are currently satisfied with the existing planning system. The question then is how best to alleviate the issues that currently challenge the public and private sector parties with an interest in this key industry. Lee Murphy, a planning consultant at Shoosmiths in Scotland, considers the significance of the statement by Ivan McKee, minister for public finance to the Scottish Parliament on 12 November, in which he set out the Scottish Government’s Planning and the Housing Emergency Delivery Plan.

In his statement, the minister acknowledged the multifaceted nature of the housing crisis and the significant role of planning in addressing the national housing emergency. 

It’s notable that prior to the statement, the Scottish Government elevated the former Planning Architecture and Regeneration Division to Directorate status from 5 November. This is arguably a recognition of its pivotal role across government.



Let’s consider the key points in the statement. Ivan McKee highlighted the progress made in planning reform in Scotland since 2014, noting that an annual average of 29,000 homes had since been granted planning permission, with house starts annually averaging 19,892 and completions averaging 19,160 per year. The Minister estimated there are 164,000 unbuilt homes with planning permission and a further 64,000 homes awaiting approval.

Those figures have been questioned by various bodies, including Homes for Scotland. It had called for robust interrogation of the “stalled sites,” though has since recognised the Minister’s effort to address concerns that had been raised within the sector.

Significantly, the Delivery Plan outlines a series of actions to be implemented by the government over the next six months, guided by four key objectives: policy, delivery, efficiency, and capacity.

The actions include the introduction of a Housing Planning Hub, aimed at unlocking development sites and accelerating housing delivery throughout Scotland. 



According to the Minister, the Hub will be operational by early next year and will:

  • Address reasons for delays, such as lengthy negotiations and policy requirements
  • Seek to work collaboratively with local authorities and industry partners to identify and overcome barriers
  • Support major developments, providing targeted support for major housing developments that have stalled
  • Work with SME housebuilders

The Delivery Plan will consider an increase to planning fees and streamline the planning process. Moreover, it will aim to standardise planning conditions and agreements, explore Masterplan Consent Areas, support new development plans and look at housing land audits to clarify the availability and allocation of land.

All of the above outline concrete steps – at least on paper. There is still some uncertainty around whether the Delivery Plan actions are timely enough and will adequately address the current challenges that face the industry and detrimentally affect the delivery of homes in Scotland. 



For example, the industry had previously acknowledged the need for an increase in planning fees, However, there was a call for this increase to be linked to improvements in the decision-making time for applications. Notably, the Planning Application Statistics for 2023/24 were issued the day before the Minister’s statement and did not show any significant overall improvement in the time taken to assess and determine planning applications. 

Admittedly, the Delivery Plan initiatives will not remedy the housing crisis immediately. If properly driven and implemented it could begin to show some improvements by late summer next year.

Crucially, the Scottish Government’s budget is scheduled for 4 December 2024. The housebuilding industry, in particular, will be looking for initiatives that support the Delivery Plan actions, addressing issues such as rising costs and funding while navigating evolving policy.

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