DEVASSIST: Government reportedly preparing to take control of major housing decisions

A new report suggests that central government could soon play a much more direct role in determining large housing schemes, potentially removing councils’ ability to refuse applications for developments of more than 150 homes.

According to coverage in The Times, Housing Secretary Steve Reed is expected to unveil plans that would require local planning authorities to notify the Ministry of Housing, Communities and Local Government whenever they are considering refusing a major residential scheme. Instead of issuing a refusal, councils would “have to refer” the application to the Secretary of State for a final decision.

If introduced, this would amount to a legally binding instruction for local authorities to pass any 150-plus unit proposal to central government. The report claims that councils would need to alert ministers to any scheme they “intend to block”, enabling the department to step in, call in the application and appoint a planning inspector to assess it. The inspector would then make a recommendation, with the final determination resting with the Secretary of State.

At present, councils only have to refer large-scale developments that they have approved where the project may conflict with national policy or have impacts beyond the local area. The reported change would therefore represent a major shift in how planning decisions for larger sites are handled.

Government sources quoted by The Times suggested that ministers believe a more centralised process could be quicker. They indicated that decisions might be reached on the basis of written submissions rather than full inquiries, which they described as “simpler and faster”.

The Ministry has declined to confirm whether such measures are being considered or how they would be implemented, and no timetable has been provided.

Mixed reaction from the sector

Industry views are already emerging. The Home Builders Federation welcomed the prospect, saying it could support the delivery of more sizeable schemes. A spokesperson said the move would help “ensure more larger sites come forward and prevent unnecessary delays”. They added: “If the government can reduce regulatory costs so more sites are viable, the move could help drive housing supply.”

Local government bodies have taken the opposite view. The Local Government Association said that councils should retain their central role in planning, stating: “Councils know their communities best and should remain at the heart of the planning process. The democratic role of councillors in decision-making is the backbone of the English planning system, and this should not be diminished.”

Planning specialists have also raised practical considerations. In a LinkedIn commentary, Pinsent Masons partner Iain Gilbey noted that an increase in call-ins would significantly expand demands on the Planning Inspectorate, which “would need to be ramped up if this change is going to have a short- or medium-term effect on consents and numbers”. He also questioned whether written representations would genuinely speed things up, observing that they “have been slower and often the slowest appeal route, and in any event may well not be suitable for larger, more complicated schemes”.

A broader shift in decision-making powers

The speculation follows recent legislative moves that would give ministers the authority to prevent councils from refusing an application while they consider calling it in. London already operates a similar system, with the Mayor able to take over decisions on schemes of more than 150 homes. The Mayor and the Ministry have separately proposed reducing the threshold to 50 homes.

Meanwhile, the Devolution Bill could extend call-in style powers to metro mayors and combined authority leaders, enabling them to take charge of decisions deemed strategically important.

What this means for homebuyers and developers

For anyone navigating the planning system, this reported shift highlights an increasing level of central involvement in major housing decisions. It also reinforces how unpredictable the planning landscape can be, particularly for large and complex sites.

Understanding the wider planning context, emerging policy changes, and the potential for call-in intervention is now more important than ever. DevAssist can help you assess these risks and anticipate how they may affect land, development proposals or the long-term outlook for a property.

If you would like expert insight into the planning activity and future change around a site, get in touch, and we will guide you through your options.

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