Strict time limits should be imposed on developers to stop them from sitting on land that has been designated for the building of new homes, MPs on the Housing, Communities and Local Government Committee have argued.

In a report looking at the government’s proposed reforms to the planning system, the committee says it is “unpersuaded” that the changes will work.

The committee’s report says: “It is our view is that the pace of completing planning permissions is too slow, and that carrots and sticks are needed to quicken the pace.”

The MPs say that they: “Recommend introducing, in the first instance, time limits for the completion of construction and non-financial penalties where those limits are exceeded without good cause. 

“The government should set a limit of 18 months following discharge of planning conditions for work to commence on site. 

“If work has not progressed to the satisfaction of the local planning authority then the planning permission may be revoked. 

“An allowance of a further 18 months should be allowed for development to be completed, after which the local authority should be able, taking account of the size and complexity of the site, and infrastructure to be completed by other parties, to levy full council tax for each housing unit which has not been completed.”

The MPs have also called on the government to give a detailed account of how it intends to meet its target of building 300,000 new homes a year.

Committee members say that it should be down to local authorities to determine what proportion of affordable housing in their area is fulfilled by the government’s newly-unveiled First Homes scheme.

In addition the cross-party group of MPs has cast doubt over whether the government’s plans for three types of development zone, designated “growth”, “renewal” and “protected”, will be effective in creating a quicker, cheaper or more democratic system.

The MPs have also criticised proposals that mean residents of an area would only be consulted about setting local level plans and not about individual developments.

HCLGC chair Clive Betts says: “The government’s aim of developing a planning system that enables buildings to be built more quickly and with greater input from local communities is welcome, but it is far from clear how the current proposals will achieve this. 

“The government’s three areas proposal needs to be reconsidered.

“We also need much more information about the government’s target to build 300,000 homes every year – as well as the changes to the housing formula announced last December. 

“It’s all very well having numbers on paper – but we need to know how we get to them in reality. 

“Local authorities also need better options for pushing developers to actually build what they have been given permission for. 

“We have called on the government to allow local authorities to levy Council Tax on homes that haven’t been built years after they have been approved.

“Of course, planning also has wider impacts beyond housing. There were many issues that weren’t addressed in the government’s proposals – including how the changes will affect the levelling-up agenda, economic recovery from Covid-19, and the environment. 

“We ask for further information, and consultation, on all of these areas.

“Public engagement is critical in planning – and our report stresses the need for the government to really get to grips with how it can best involve local people in the planning process. 

“This is essential if any changes to the planning system are to be a success. We also highlight the need for the public to still be able to comment on individual planning proposals – in addition to engaging with Local Plans.”

An MHCLG spokesperson says: “We have not yet published a response to the consultation so these conclusions are speculative.

“As the report rightly identifies, the planning system is in need of improvement and our reforms will mean a quicker, more efficient and less bureaucratic planning system so we can build more much needed homes across the country.

“Local people and high quality design will be at the heart of these changes, while protecting our heritage and green spaces.”