New housing target for 2020 in danger

Planning applications for new properties in the UK are rising, but are still not in position to hit the Government’s proposed target of one million new homes by 2020.

According to data from the Department of Communities and Local Government (DCLG), planning authorities in England received 132,000 applications for planning permission. This was up by 7% from the first quarter of the year, with those being granted rising by 6%.

Decisions

Data from the report does show that there are more properties scheduled for investors to potentially take out landlord insurance on in the future.

83% of major applications were approved within 13 weeks or within an agreed timescale, up from 79% one year ago. 12,200 residential applications were approved, up by 8% year on year.

In the year ending June 2016, district level planning authorities granted 378,200 decisions, up by 4% year-on-year. In addition, these authorities granted 47,600 decisions on residential developments, of which, 6,000 were for large developments and 41, 600 for minor projects, a rise of 6% annually.

New housing target for 2020 in danger

New housing target for 2020 in danger

Pace issue

However, Andrew Bridges, managing director of London based estate agents Stirling Ackroyd, the Government is failing on new housing promises. Bridges noted: ‘the sluggish growth in the approval of residential applications will not be enough to enable a million new homes to be built by 2020.’[1]

‘Local authorities are still granting fewer applications than a decade ago, despite the Government’s highly publicised housebuilding agenda. While councils are granting 88% of all decisions, it’s concerning this proportion varies wildly in different local planning authorities. Given the serve shortage of homes across the UK, we can’t afford for some councils to only grant a quarter of applications for major developments,’ he continued.[1]

Concluding, Bridges said, ‘the Chancellor must do more to support house builders and the construction sector, if we are to have any hope of fixing the housing crisis. Additional help to unblock stalled sites and incentives to build-out existing permissions will enable house builders to step up supply. We can’t afford to allow this pre-Brexit stagnation in the creation of new homes to continue if we want to stop house prices from spiralling out of control.’[1]

[1] http://www.propertywire.com/news/europe/planning-application-decisions-sluggish-meet-uks-2020-new-home-target/

 

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