Positive figures released today show that planning permissions rose fairly substantially during the second quarter of 2015.
HBF and Glenigan’s latest Housing Pipeline report indicates that 52,167 homes were granted planning permissions in last three months, a rise of 19% of the 43,926 recorded at the same time twelve months ago.
As a result, the Moving Annual Total has gone past 200,000 for the first time in seven years.
With Britain looking to improve housing supply, the increased number of homes in the pipeline is very welcome. The introduction of the Help to Buy Equity Loan scheme in 2013 has improved output substantially. However, the constraints attributed to the planning process are hindering the chance to satisfy demand still further.
Figures from the report show that 203,810 permissions were approved in the year to April, while in Q1 of this year, permissions were up more than twice on what they were at the same period in 2011 and 2012.
‘Since the Help to Buy scheme was introduced in 2013 house building activity has increased strongly,’ observed Stewart Baseley, Executive Chairman of the HBF. ‘Private housing starts in 2014 were up nearly 40% on their pre-Help to Buy level in 2012. However we are still only building around half the number of new homes the country needs and far fewer than in previous decades.’
Planning permissions rise by 19% in Q2
‘One of the biggest constraints on the industry’s ability to meet the new level of demand and deliver further sustained increases in build rates is the planning process. How quickly we get more sites to the point where we can actually start to lay bricks will be a major influence on future house building levels,’ Baseley continued.
Baseley also believes that, ‘increasing housing delivery will provide the high quality homes our next generation needs, support thousands of companies up and down the land and create tens of thousands of jobs.’
Glenigan’s Economic Director, Allan Willen also commented, ‘Planning approvals remained firm during the first quarter, as private sector developers bring forward more and larger sites than a year ago. Glenigan expect the strengthening development pipeline to feed through to a rise in project starts during the second half of the year.’