The "New Housing Pipeline" Report

Posted on January 11, 2011 by Professor Benfield There have been 0 comments

Dramatic Fall in Planning Permissions
Published last Friday, Glenigan’s report to the Home Builders Federation shows planning permissions for new homes dropping at an alarming rate.  They are now at one of the lowest levels in the last five years, and the second lowest of the past 19 quarters.

Lowest number of New Home Permits
Covered by the Financial Times this report gives the first full and accurate picture of the number of planning permissions being granted by Local Authorities across Britain. With an annual shortfall of around a million homes, this collapse threatens to worsen the acute housing crisis.  In  2010 recorded the lowest number built since 1923.

Deepening Crisis Linked to Planning Changes
With new permissions typically taking up to three years to build, it is likely to take some time for this drop to be felt, but with projections showing that the UK needs some 232,000 new homes a year until 2033 the crisis is only worsening. 2009 only produced 118,000, with their being a steady fall in new home permissions in England dropping from over 40,000 in Q1 to just over 30,000 in Q3. This coincides with radical changes in the planning system by the new Government, and a shift from the old top down targets to a new localism based approach that hands more power to Local Authorities.

Urgent Government Action Needed
With new planning permissions being the lifeblood of housing supply, the social and economic implications of this for the UK could be disastrous.  Local Authorities must be made to recognise their responsibility for the housing shortage, rapidly get to grips with the new planning system, appreciate the incentives that are being given to them, and allow developers to build the homes their residents and the country desperately need.


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