This is basically a lose-lose situation: extra bureaucracy for development projects that actually benefits the local residents (planning applications can get to thousands of pages long, and the whole process takes a really long time [0]), and local residents don't actually get the benefits intended by policies like this. The only people this benefits are those who have a lot of money to throw at things like this.

[0]: https://www.thetimes.com/uk/london/article/shoreditch-works-...