Sector Profile: Residential

As part of our series to mark World Town Planning Day on 8th November, Kerry Csuka (Associate), shares her insights for Residential Sector Planning. Kerry Csuka has been with JLL for over seven years, having joined the graduate scheme in 2017. She specialises in residential-led developments, including estate regeneration and infill schemes, primarily for Local Authority and Housing Association clients across London and the wider South East.

Key Trends in the Residential Sector

• Partnerships – Local Authorities are facing increased pressure to deliver new homes amid viability challenges. As a result, they are increasingly engaging in joint venture partnerships with private sector partners and Housing Associations to facilitate large-scale housing-led redevelopment and regeneration projects. We are certainly expecting to see more of this ‘joined up’ approach in the future.

• Repurposing Buildings for Residential – There is growing interest among developers in utilising permitted development rights to convert existing properties, either alongside or instead of new builds. Changes to Class MA earlier this year has opened up new possibilities for repurposing underutilised office and retail spaces falling under Use Class E, and the Planning Team have experienced a marked increase in assisting clients through the Class MA Prior Approval process. 

Opportunities in the Sector

• Grey Belt Development – The draft National Planning Policy Framework (NPPF) proposes to introduce a new category of Green Belt land, not only covering previously developed land, but also greenfield/undeveloped land which makes a limited contribution to the five Green Belt purposes. This proposed policy shift creates opportunities for development on sites that were previously considered challenging or ‘off-limits’. As a result, it's now an opportune time for developers to reassess potential development sites and existing assets, with the aim of identifying and potentially unlocking new development opportunities that align with this expanded definition.

• Site Promotion - Local Authorities will need to plan for increased housing numbers across the UK, in response to the strengthening of the revised method for calculating housing need within the draft NPPF. This will mean more residential sites will be required to meet increased levels of identified housing needs, potentially creating new opportunities to positively promote sites through the Local Plan process. 

Key Challenges

• Funding – This remains the most significant challenge for developers. It’s positive to hear the Government has proposed a package to deliver up to 5,000 affordable homes with £500 million in new funding in their Autumn budget, however, it is likely that even more grant funding for affordable housing will be needed to quickly boost demand for new homes from Housing Associations and other Registered Providers. Greater funding also needs to be given to Local Planning Authorities to have the resources in place to determine planning applications, and in turn expediate the planning process.

• Meeting Ambitious Housing Targets - The Labour Government’s manifesto aims to deliver 1.5 million homes in England over five years, a rate significantly higher than has been achieved in recent decades. To achieve this, legislation to facilitate the fresh generation of new towns will be needed. It will be interesting to know from the Government’s taskforce as soon as possible where these new towns are going to be and how these will be delivered.

• Infrastructure - Ensuring that new towns and significant residential schemes are infrastructure-led is critical, particularly in light of recent electricity and water supply issues in various regions across the UK.

Residential Planning Expertise 

The JLL Planning Team has a proven track record in delivering exemplary residential development schemes across the UK. We advise private and public sector clients on all aspects of residential planning, including market sale, affordable housing, estate regeneration, later living, and Build to Rent.

For advice on residential planning, future development potential, development strategy, or unlocking maximum value for your site or portfolio, please contact our team.