According to new figures from the Home Builders Federation (HBF), planning permissions for homes in England have reached a six year high. Richard Carr believes this is good news for everyone.
A rise in residential planning permissions is a big boost for the market
Richard Carr is an expert in achieving planning for residential and commercial property, with a 30 year career in the industry. He now works for Jacob Carr Homes Ltd.
Richard believes the rise in planning permissions is positive news. It is a boost for the housing market and will provide more choice for the consumer and should help release some of the upward pressure on prices. It is good for the economy as a whole as so many industries benefit from house building.
Almost 200,000 planning permissions granted in the last 12 months
The HBF’s latest housing pipeline report indicated that planning permissions for 56,647 homes were granted in Q2 of this year. The continued rise over the last four quarters takes the annual total to 197,325 permissions in the 12 months to Q2, a rate not seen for over six years.
Stewart Baseley, Executive Chairman of the HBF, said: “The comparatively low number of actual sites getting permissions is concerning. We need to see work underway on more sites if the overall number of new homes being built is to continue to increase.”
There is still work to be done, though
Yet, whilst the number of plots getting permission is back to 2008 levels, the number of actual sites gaining approval is behind the figures of 2008. In total, almost 300 less sites were granted permission in Q2 compared to each quarter in 2007/08. Six years ago over 1,000 were being granted whereas the latest figures show just 715.
Richard believes that a far more aggressive approach by central government needs to be implemented onto LPA’s, and that the NPPF should be forced onto LPA’s not merely recommended.
The signs are promising, says Richard
Richard Carr believes that the progress being made is set to continue, which will give the UK economy a lift and satisfy the demand for new homes. He believes there is positive news for first time buyers, however Labour have dropped a bomb on the £1.8M-£2.5M market with the threat of the ‘Mansion Tax’ causing hysteria with developers with stock at this level.
If the government are serious about getting house building really moving then give a 24 month freeze to CIL and S106 payments, as long as the sites are under construction within 18 months of Planning Grant.