Scotland is in the midst of a housing emergency, officially recognised by the Scottish Government in May 2024, with several local authorities similarly declaring housing emergencies in their authority areas. The challenges posed by the pandemic and the ongoing cost of living crisis have heightened the need for economic growth and, critically, for new housing. Despite these pressing needs, Scotland's current planning framework may not provide the solution which is required.
In February 2023, the Scottish Government adopted the National Planning Framework 4 (NPF4), a comprehensive document that aims to guide spatial development across Scotland. Within this framework, Policy 16 was introduced to promote the delivery of high-quality, affordable, and sustainable homes. However, the restrictions under Policy 16f, which strictly limit the development of new homes on land not allocated for housing in Local Development Plans, have sparked significant debate and legal challenges.
One such case, Miller Homes v. Scottish Ministers, highlighted the tension between NPF4 and pre-existing Local Development Plans (LDPs). Miller Homes sought planning permission for 250 houses on unallocated land, only to have their appeal rejected due to Policy 16f. The court's decision reinforced that NPF4 takes precedence over older LDPs, even in the absence of a clear delivery pipeline for housing—a key component of the new framework.
The aftermath of the Miller case prompted Scotland's Chief Planner to clarify the Scottish Government’s stance, emphasising that NPF4 shifts focus from merely meeting numerical housing targets and shortfalls to ensuring homes are built in suitable locations with an emphasis on quality, diversity, and sustainability. The strict criteria for using unallocated land under Policy 16f raises questions about whether the current framework is too rigid to address the housing crisis effectively.
As Scotland grapples with this housing emergency, it may be time to reconsider the stringent approach of NPF4. The Competition and Markets Authority's recent report on the UK housebuilding sector offers several recommendations that could inform potential reforms. These include streamlining the planning process, boosting local planning authority capacity, and providing better support for small and medium-sized enterprises (SMEs) in the housing sector.
Meanwhile, the UK Government’s proposed reforms to the English planning system—aimed at delivering 1.5 million new homes—could serve as a blueprint for Scotland. With proposals to reclassify certain Green Belt land (to Grey Belt) and simplify the planning process, these changes may prompt questions about whether Scotland's current policies are too restrictive to meet the nation's housing needs.
The Scottish Government is taking positive steps through the introduction of a new housing planning hub, to provide planning authorities with access to specialist expertise, support upskilling and help prepare their workforce for the future. Additionally, there are proposals to further streamline the planning system including standard templates for planning obligations and common planning conditions, and identifying scope for improvement of cross council working.
However, it does still have to be considered whether a less strict approach to the release of non-allocated land would be appropriate, or how housebuilding can otherwise be accelerated. As other parts of the UK move toward more aggressive planning reforms, there is a growing expectation that Scotland may need to adopt similar measures to accelerate the delivery of much-needed housing. Removal of potential hurdles in planning applications could be a crucial step in ensuring that Scotland's housing crisis is met with effective and timely solutions.
