The Localism Bill has now received Royal Assent and the British Property Federation (BPF) has welcomed the new Localism Act which aims to give local neighbourhoods more say over where development goes, in the hope that this will make them more likely to embrace it.

How far that will happen in practice is yet to be seen, says the BPF but the Act offers the potential to deliver the increased house building and economic growth that the country needs in a way that communities can support.

Under the proposals, local authorities will have greater decision-making powers and the opportunity to take advantage of a package of incentives from government aimed at rewarding those authorities and local communities who welcome development in their area. Following intensive lobbying, the BPF says it is also pleased to see the inclusion of business neighbourhoods, which recognises the valuable part that businesses play in every vibrant and sustainable community.

It is hoped the Localism Act will incentivise councils to streamline planning processes and encourage development, which could relieve the national housing shortage and help address the country’s economic woes.

Liz Peace, chief executive of the British Property Federation, said: “We welcome the government’s recognition of the need for localism to support sustainable economic growth and have been pleased to work closely with the government in developing the concept of business neighbourhoods in areas that are mainly commercial in character.

“We look forward to the government now realising the full potential of localism by pressing ahead with other measures that can empower local communities such as greater local retention of rate revenues and tax increment financing.”