The planning system is used to make decisions on the future developments to be made, and the use of land in our towns, cities and countryside. The philosophy is it reflects where development is viable, where it isn’t and how the development will affect its surroundings. The system equalises the competing demands to ensure that the land is used and how it will be used in the public’s long-term interest (Scottish Government, 2012). The impact of planning has huge effects on the property market so it is very important where and when developments are getting undertaken. Through explaining the role and impact of planning on the property market, it will show clearly why developers are required to pay a levy on each site as a condition of planning permission. The impact in which planning has …show more content…
Not only that but planners help create the property market, without them it wouldn’t function. According to the David Adams and Steven Tiesdell (2010) the activities of planners help construct the market, making the connection between planning and the market interdependent rather than dichotomous. However, as said in Balchin (1997) he argues against the market with which planners mostly participate those concerned with the land and land surrounding and property among least efficient due to the extensive amount of imperfection and failure, hence the reason for certain specialists to deal with these issues. It is known that the property market is not perfect and without planning failure rates would be a lot higher! There are many ways in which the market could fail however the most common is there is in a interference of the planning authority and when they make an alteration to something and could be known as externalities and limited provision of public goods. A negative externality arises when one or a firm is making a decision and