The House of Commons Library has published a full report on the new Planning and Infrastructure Bill.

The report can be seen here.  Its implications for landlords are

Impact of the Planning and Infrastructure Bill 2024-2025 on Landlords and Property Investors

The Planning and Infrastructure Bill introduces significant changes to housing, infrastructure, energy, and planning regulations, all of which could impact landlords and property investors. Below is a breakdown of the key areas affecting them:

1. Housing Development and Supply

• The government’s target to deliver 1.5 million homes suggests a push for new housing developments, which could increase supply and potentially affect property prices and rental demand.
• The expansion of development corporations could accelerate the creation of new towns and large-scale housing projects, leading to greater competition for landlords in certain areas.

Implication:

• Investors should monitor new housing supply in their investment areas, as oversupply could affect rental yields.
• There could be opportunities to invest in new developments with improved infrastructure.

2. Planning Fees and Local Authority Powers

• Local authorities will be allowed to set their own planning fees, which may increase costs for landlords applying for planning permission (e.g., HMO conversions, extensions).
• New strategic planning boards could lead to faster approval for new developments, benefiting investors looking to build or expand.

Implication:

• Higher fees for planning applications could make property development more expensive.
• Faster planning processes could present new opportunities for investors who are looking to develop or convert properties.

3. Infrastructure Improvements

• Investment in electricity, transport, and energy infrastructure could increase property values in areas benefiting from these projects.
• Faster planning approvals for roads, transport links, and energy projects could improve connectivity and attract tenants.

Implication:

• Investors should track infrastructure projects to identify emerging hotspots where property values and rental demand may increase.
• Properties near new energy infrastructure could face disruption but may also receive compensation under the household benefit scheme.

4. Environmental and Energy Efficiency Regulations

• New Environmental Development Plans (EDPs) will replace existing Habitats Regulations, streamlining environmental assessments for projects.
• Developers will be required to pay into a Nature Restoration Fund, which could increase costs for those involved in new builds or significant renovations.

Implication:

• Potential increase in costs for new developments due to environmental levies.
• Greater clarity on environmental requirements may reduce delays for planning applications.

5. Compulsory Purchase and Land Value Implications

• The bill streamlines compulsory purchase orders (CPOs), allowing the government to acquire land more easily for infrastructure and housing projects.
• Hope value (future development potential) will be disregarded in some cases, such as when land is acquired for affordable housing projects.

Implication:

• Landlords holding undeveloped land may see a reduction in market value if the government can acquire land without considering its potential development value.
• Those affected by compulsory purchase orders may receive compensation based on market value, rather than speculative future value.

6. Energy and Sustainability Changes

• The bill introduces measures to speed up the transition to renewable energy and storage infrastructure.
• Local authorities may push for more sustainable developments, which could affect planning permissions for landlords making changes to properties.

Implication:

• Landlords with energy-inefficient properties may face new compliance costs in the future.
• Opportunities to invest in energy-efficient developments that align with government sustainability goals.

Conclusion: Risks & Opportunities for Landlords

✅ Opportunities:

• Infrastructure improvements may increase rental demand in newly connected areas.
• Faster planning approvals may accelerate property development.
• New housing projects could present investment opportunities.

⚠ Risks:

• Increased planning fees could raise costs for landlords looking to convert or develop properties.
• Compulsory purchase powers could reduce land values or force sales at lower-than-expected prices.
• New environmental levies could make property development more expensive.

🔎 Actionable Steps for Landlords & Investors:

• Monitor local infrastructure projects to identify investment hotspots.
• Review planning applications for potential cost increases in specific areas.
• Stay updated on energy efficiency requirements to avoid unexpected regulatory costs.
• Engage in policy discussions to help shape the final form of the bill.