The Private and Social Costs of Planning Delay

Abstract

This paper examines planning delay and identifies the difficulty in establishing an appropriate definition and measure of delay. It then outlines an economic framework for the analysis of delay costs, distinguishing between private costs and the various elements of social cost. It shows that the costs of delay are contingent upon the restrictiveness of planning and should be assessed in relation to the benefits of planning control. Available estimates of delay cost are identified, but are shown to be deficient even as measures of the private cost of delay. Various suggestions are made for the improvement of existing approaches, but it is concluded that the assessment of private and social delay costs requires case-study research which distinguishes between property sectors, locations and different points in the cycle of property development.