Fast tracking planning applications for new homes is the best way to solve Scotland’s housing crisis, while giving the economy a much needed boost. That’s the verdict of business leaders Sir Tom Hunter and Lord Willie Haughey.
Speaking on their Go Radio Business Show, Lord Haughey said: “The new report from Homes for Scotland makes for difficult reading. It shows that major new housing developments are being held over for over a year because of the planning process.
“It took an average of 62 weeks to process planning submissions despite the statutory timeframe being only 16 weeks. In fact, there has been a 41% collapse in the number of applications.
“The Government has to realise that housing and development is at the heart of how we get the country’s economy back on its feet. Before the fintech boom, new home development was at the heart of how we boosted the economy. In fact, the amount of houses built in the UK used to be the barometer of how the economy was doing.”
He pointed out that new home construction was also a prime driver for getting young people into employment.
“We have to get planning applications moving,” he said. “We have to encourage more investment yet it looks as if it’s going the opposite way. We have to get the finger out here and have a serious look at this and listen to what developers have to say.”
His show co-host Sir Tom Hunter noted: “If you look at the history of every recession – and we’re currently in a recession, whether you want to call it a technical one or whatever – when we've come out of them it’s been new housing led.”
Lord Haughey pointed to cutbacks in local authorities as a primary reason for the long delays in planning applications and construction projects not being advanced.
“I’m sure working from home maybe has something to do with it but essentially it’s down to a lack of personnel. I totally understand that local authorities are under pressure because of budgetary constraints, but it can’t be the case that all your answers have to be: ‘Cut, cut, cut!’ We have to look at other ways.
“If you had a slick planning department that moved much, much faster, that would attract new investment – even if you’re telling people no, it works as long as they get the answer more quickly.
“The money that you would generate from new houses, from the rateable take, for the money coming into the coffers, you could employ more people. In other words, it would pay for itself.
“If you wanted to charge a bit more for fast tracking, for whatever it may be to get planned application, I am sure major developers and builders would be happy to pay that premium.”
Sir Tom agreed, adding: “We’re doing a big development in West Lothian, just outside Edinburgh, and our chief executive has a very good relationship with the West Lothian Council planning department.
“We have been there for 17 years so they know each other very well, even if they don’t always agree, and the planners are always looking for developers to build more public communities."
He referenced the experience of BrewDog founder James Watt who had used a fast track planning system when he was opening bars in America. He said: “James had to pay, but he could say: ‘I want to open a brewery in Columbus, Ohio. Here are my plans.’ And he pointed out the Americans had worked out that by acting quickly, they would get more rates, they would get more jobs created more quickly.
“I actually put that to Nicola Sturgeon when she was First Minister, but she never got back to me. Maybe I missed her response in a WhatsApp message?”
Lord Haughey concluded: “It’s not about jumping the queue. All developments where people are going to spend more than £20 million should be in a priority lane.
“We must do something now to re-energise the market for building houses. This country needs it.”
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